Salem, Oregon – As the Oregon legislative session rapidly approaches its conclusion, state lawmakers in the House are deliberating a significantly revised version of a critical transportation funding measure, House Bill 2025.
The proposed legislation, aimed at addressing the state’s infrastructure needs, has undergone substantial changes. A comprehensive 155-page amendment to the bill was formally introduced on Wednesday afternoon by House Speaker Julie Fahey. Following its introduction, the amended bill was immediately scheduled for a hearing on Thursday afternoon, signaling the urgency surrounding its consideration.
Financial Scope and Revisions
The core of House Bill 2025 lies in its projected financial impact. The revised bill is now estimated to generate approximately $11.7 billion over the next decade for transportation projects and programs across Oregon. This figure represents a notable reduction from the initial iteration of the bill, which had projected revenue of $14.6 billion over the same ten-year period.
The decrease in projected funding stems directly from significant alterations to the proposed revenue streams. One of the most prominent changes is the complete removal of a proposed 1% transfer tax on the sale of used cars. Additionally, a proposed 2% tax on the purchase of new cars has also been eliminated from the revised measure.
Adjustments have also been made to the planned increase in the state’s fuel tax. The original proposal intended to raise the per-gallon gas tax from the current 40 cents to 55 cents. The amended bill retains a gas tax increase but scales it back slightly and extends the timeline. Under the current proposal, the gas tax would rise from 40 cents to 52 cents by the year 2028.
Despite these reductions in vehicle-related taxes, a key component focused on funding public transit remains largely intact, albeit with a phased implementation. The proposal to triple the existing payroll tax dedicated to public transit services continues to be part of the bill. This tax is set to increase from its current rate of 0.1% to 0.18% in 2026, and further rise to 0.3% by 2030.
Political Hurdles and Opposition
The path forward for House Bill 2025 is fraught with political challenges, requiring broad consensus in a closely divided legislature. Passing any bill that includes tax increases in Oregon necessitates a three-fifths majority in both chambers. Specifically, it requires support from at least 36 representatives in the House and 18 senators in the Senate.
Crucially, these vote thresholds match the exact number of Democrats currently serving in each legislative chamber. This means that passage of the bill would require nearly unanimous support from the Democratic caucus, or necessitate securing votes from members of the Republican minority.
The bill has already encountered significant opposition, not only from Republican lawmakers but also from some members within the Democratic ranks. Critics have raised concerns about the scale of the proposed taxes, their potential impact on constituents, and the legislative process itself.
Representative Shelly Boshart Davis, a Republican from Albany who serves as vice chair of the Joint Committee on Transportation Investment, has been vocal in her criticism of how the bill has advanced. Her comments highlight the procedural disagreements and concerns about transparency surrounding the development and presentation of the substantial amendment just days before the session’s scheduled adjournment.
Adding another layer to the political complexity, the debate over transportation funding has previously led to internal party repercussions. Senate President Rob Wagner, a Democrat from Lake Oswego, took action earlier in the session by removing Senator Mark Meek, a Democrat representing Gladstone, from a key committee. This decision followed Senator Meek’s public opposition to an earlier version of the transportation bill, underscoring the high stakes and firm party line sought by leadership on this issue.
Outlook as Session Ends
With only a limited number of days remaining in the legislative session, proponents of House Bill 2025 face a tight timeline to navigate the revised measure through both the House and the Senate. The significant reduction in the overall funding ask, coupled with the elimination of certain controversial taxes like those on used and new vehicles, appears to be an effort to build broader support.
However, the continued inclusion of the payroll tax increase and the modified gas tax hike ensures that the bill retains provisions likely to attract opposition. The ability of Democratic leadership to secure the necessary 36 votes in the House and 18 votes in the Senate before the session adjourns remains uncertain, making the fate of this crucial transportation funding package a key point of focus in the final hours of Oregon’s legislative calendar.
