The “C” Program began in 1946, when the South Carolina General Assembly recognized the shortcomings of the concept of having local governments provide funds for roads and streets of local interest. State funds, at that time, were used to develop a primary network of paved highways from one key point to another. This meant that the local roads and streets in front of the homes of citizens were not being paved and no direct benefit was seen from gas taxes and license fees they were paying. Responding to these complaints, the General Assembly adopted a measure that divided the state highway system into primary and secondary roads. In July 1946, an act creating the state primary-secondary road systems stipulated that $6 million per year for three years be spent on secondary roads. The original intent of the “C” Program was to pave farm-to-market dirt roads on the state system.

Although many think that the “C” in the name of the program stands for county, the “C” Program actually received its name from a listing of funds for the state highway construction in 1951. This listing designated Federal Aid Funds as Program “A”, Miscellaneous State Funds as Program “B”, and the State Secondary Program as Program “C”. Over time, this designation has been altered to become the “C” Program.

In 1994, the "C" Fund statutes were revised by removing the legislative delegations’ control and creating County Transportation Committees (CTC). Present legislation requires each county to have a CTC. Members of the CTC are appointed by and serve at the pleasure of the county’s legislative delegation. There is no prescribed number of members for the CTC. The CTC must be made up of fair representation from municipalities and unincorporated areas of the county. The responsibilities of the CTC include the formation of a county transportation plan as well as the approval and use of “C” funds.