Oregon Governor Seeks Repeal of Transportation Bill
Oregon Governor Tina Kotek is calling for a legislative repeal of the recently enacted Oregon Transportation Bill. She wants lawmakers to undo House Bill 3991. This bill is Oregon’s new transportation funding package. It passed just months ago. The governor now calls the Oregon Transportation Bill a stopgap measure. This news comes as the Oregon Department of Transportation (ODOT) faces a major budget gap. The projected shortfall is about $242 million. Furthermore, a citizen-led referendum has already put key parts of the Oregon Transportation Bill on hold.
Understanding the Oregon Transportation Bill
Lawmakers passed House Bill 3991, the Oregon Transportation Bill, in a special session last September. It aimed to prevent drastic cuts at ODOT. These cuts would have meant large-scale layoffs and service reductions. The bill proposed new taxes and fees. These included an Oregon gas tax increase. It also added an Oregon EV tax. Vehicle registration fees were set to rise too. The total package of the Oregon Transportation Bill was expected to generate significant new revenue. This revenue was crucial for ODOT’s operations and maintenance.
The Ballot Initiative and its Impact on Oregon Transportation Funding
However, the Oregon Transportation Bill immediately faced opposition. A campaign, largely led by Republicans, began collecting signatures. They gathered over 150,000 signatures. This number far exceeded the requirement to place the measure on the November 2026 ballot. The submission of these signatures automatically paused the new tax and fee increases. They will remain frozen until voters cast their ballots. This pause created immediate financial uncertainty for ODOT and its projected Oregon transportation funding.
ODOT’s Deepening Financial Woes Amidst Oregon Transportation Bill Uncertainty
ODOT is grappling with a severe financial crisis. Several factors contribute to this. Gas tax revenues are declining. More fuel-efficient cars and electric vehicles are on the road. Inflation also makes maintenance and projects more expensive. Additionally, state law directs much of ODOT’s funding to specific uses. This leaves little for essential day-to-day maintenance like patching potholes and plowing snow. The projected $242 million gap means hundreds of layoffs and service cuts are imminent by spring. The uncertainty surrounding the Oregon Transportation Bill exacerbates this ODOT budget crisis.
Governor Kotek’s New Strategy: Redirect, Repeal, Rebuild
Governor Kotek is now advocating for a new approach. She calls it “redirect, repeal, and rebuild”. First, she wants the legislature to repeal HB 3991 entirely. This would remove the controversial tax increases of the Oregon Transportation Bill from consideration by voters. Second, Governor Kotek wants to redirect existing funds. She proposes shifting money earmarked for specific projects to ODOT’s core operations and maintenance needs. This move would likely require legislative changes to existing laws. Finally, she plans to lead a bipartisan effort. This effort would aim to develop a comprehensive transportation funding package for the 2027 legislative session, addressing the issues that led to the debate over the Oregon Transportation Bill.
Political Reactions and Concerns Regarding the Oregon Transportation Bill Repeal
This pivot has drawn strong reactions. Oregon Republicans criticize the governor’s call for the repeal of the Oregon Transportation Bill. They view it as an admission of failure for HB 3991. They argue that repealing the entire bill is a political maneuver. It aims to avoid the public vote on the tax increases. Republicans also note that a full repeal would eliminate other provisions they supported. These include reforms in the weight-mile tax system and accountability measures. Some groups, like the Oregon Trucking Associations, supported specific parts of HB 3991. They may oppose its complete repeal, impacting their view on current Oregon transportation funding strategies.
The Path Forward Beyond the Oregon Transportation Bill
Governor Kotek acknowledges the difficulty of these decisions. She stresses that inaction will lead to significant layoffs. She also stated that funding for public transit districts will not be cut. The governor is committed to a bipartisan process for future solutions to Oregon transportation funding. The Oregon Legislature is set to convene in February 2026. They will face the immediate task of addressing the ODOT budget crisis. Kotek hopes her call for repeal of the Oregon Transportation Bill will allow for new ideas. This is vital news for the future of Oregon’s infrastructure, and discussions will continue on whether to pursue an HB 3991 repeal.
