Transportation Bill Clears House in Oregon Special Session

Posted by Pam Leavitt on September 4, 2025

On Monday, the Oregon House passed a major transportation funding bill during a special legislative session, aiming to increase gas taxes, raise registration and title fees, and add new payroll taxes to support highway maintenance and prevent layoffs at the Oregon Department of Transportation (ODOT). The bill now heads to the Senate for a vote.

Senate leadership announced they are delaying the vote until Senator Chris Gorsek is able to return to the Capitol after dealing with some health issues. Senate Democrats need every vote to pass the transportation package.  Senate President Rob Wagner announced Tuesday that a package of tax and fee increases proposed by Gov. Tina Kotek would not get a vote until Sept. 17, two weeks later than expected. Leadership must find 18 votes – three-fifths of the chamber’s members — to get the tax increase through the Senate and to Kotek’s desk. With all Senate Republicans opposed, Democrats need every member they have to be present and supportive of the package.

House Passed Bill Highlights

• The bill (House Bill 3991) increases the gas tax by $0.06 per gallon, raises most registration and title fees, and phases in new mandatory road usage fees for electric and hybrid vehicles.
• Payroll taxes are increased for transit funding, but an amendment sunsets this increase in January 2028.
• The average driver is expected to pay about $5.50 per month in new taxes and fees, with a payroll tax increase adding $3.60 monthly for someone making $2,000 per month starting January 2026.
• The funding package is expected to prevent up to 932 ODOT layoffs and halt planned closures of maintenance stations, ensuring winter road plowing and emergency response services continue statewide.
• The plan allocates roughly $290–$300 million in new revenue, distributed with 50% to ODOT, 30% to counties, and 20% to cities, marking a significant boost for local governments.

Posted in Advocacy on the Move, Oregon Advocacy.