
Oregon Department of Transportation workers fill a pothole on U.S. Highway 97 near Chemult. (Oregon Department of Transportation/Flickr)
Lawmakers on Monday will hear feedback from the public on a bill estimated to generate $791 million over the next two years for the state’s transportation needs.
Oregon lawmakers came into the six-month 2025 legislative session in January with the goal to come up with a sustainable way to fund the Oregon Department of Transportation, which has faced funding shortfalls driven by declining tax revenue, inflation and spending restrictions. But by the time they had to adjourn in June, Oregon Democrats and Republicans failed to reach a compromise on how to raise money to pay for basic road maintenance and operations, local government transportation spending and transit needs.
Gov. Tina Kotek in late July called lawmakers to come back to Salem ahead of Labor Day weekend for a special session to address the state’s shortfall in transportation funding. The session starts Aug. 29, but before the full Legislature returns the Joint Interim Committee on Transportation Funding will hold a public hearing at 3 p.m. Monday for Oregonians to give feedback on Kotek’s proposed funding solution.
“Our economy and our local communities depend on safe and reliable roads and bridges,” House Speaker Julie Fahey, a Eugene Democrat and co-chair of the interim committee, said in a statement. “This special session is our opportunity to stabilize critical city, county and statewide transportation services now, while laying the groundwork for a sustainable, long-term funding solution.”
Without the passage of a transportation bill, the Oregon Department of Transportation will have to close 12 of its maintenance facilities across the state and lay off nearly 500 of its workers who maintain Oregon’s roads and bridges.
The department already sent out lay off notices to those workers in July, but the governor directed the department to postpone the layoffs until Sept. 15 in anticipation of finding a funding solution during the special session.
What is a special session?
If an emergency arises while the legislature is not in session, the governor or a majority of both houses of the legislature may call a special session.
Oregon’s most recent special session was in December, when Kotek called on lawmakers to return to Salem to appropriate funds to pay for the historic 2024 wildfire season. Last year’s special session, like most, lasted only one day. However, some have taken up to several weeks to reach a conclusion.
What’s in the proposed transportation package?
The bill would raise taxes and fees, including:
A gas tax increase from $0.40 to $0.46, effective Jan. 1, 2026.
An increase in annual registration fees from $43 to $85 for passenger vehicles; $63 to $105 for utility vehicles, light trailers, low-speed vehicles and medium-speed electric vehicles; and $44 to $86 for mopeds and motorcycles.
Increasing title fees for passenger vehicles from $77 to $216
Doubling the payroll tax used to support public transit from 0.1% to 0.2%
An increase to registration surcharges for electric and highly fuel-efficient vehicles, from $35 to $65 annually for cars with a 40+ mpg rating and from $115 to $145 annually for electric vehicles.
Phasing in a mandatory road usage charge program for electric vehicles by 2031. Electric vehicle drivers have been able to opt into the OReGO program and pay 2 cents per mile in exchange for lower registration fees, and the proposed change would mandate electric vehicle drivers participate in that program or pay a flat $340 annual fee.
The Legislative Revenue Office estimates the legislation would raise a total of $791 million for the ongoing 2025-27 budget cycle. By 2035, it would raise a total of nearly $5.8 billion.
Nearly $590 million of the 2025-27 funds would go to the State Highway Fund, of which 50% would go to the transportation department, 30% would go to counties and 20% to cities. Another $197 million raised from the increase in the payroll tax would go toward local transit districts.
The funding proposal Oregon lawmakers will consider during the upcoming special session along with a summary of the legislation can be found at the Oregon Legislature’s website.
How can I watch the public hearing?
All committee meetings are open to the public. With the capitol undergoing construction, individuals interested in attending in person can enter through the center entrance on State Street.
Oregonians can also watch a livestream of the hearing at the Oregon Legislative website.
How can I participate?
Oregonians can sign up for in-person or remote testimony on the committee’s webpage by clicking the “Register to testify” link on the right. Public testimony registration closes 30 minutes before the meeting is scheduled to begin.
Written testimony can also be submitted, and it can be submitted up to 48 hours after the committee meeting is scheduled to begin.
Comments