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Oregon Lawmakers Set to Give Final Approval to Tax, Fee Hikes for Transportation Today

The bill aims to raise $4.3 billion over 10 years to avoid nearly 10% layoffs at the Oregon Department of Transportation, increasing taxes on fuel and electric vehicles.

  • Monday the Oregon Senate is set to meet at 9 a.m. to take up House Bill 3991 during legislative days in the Oregon state Capitol.
  • ODOT's looming layoffs and budget shortfalls pushed lawmakers to consider HB 3991, which aims to raise $4.3 billion over its first decade to prevent nearly 10% workforce cuts.
  • HB 3991 would raise the gas tax by six cents per gallon, nearly double vehicle registration and title fees, and double the payroll tax for public transit from 0.1% to 0.2%.
  • If passed, the bill would prevent layoffs and spare state transportation workers; Gov. Tina Kotek said she suspended 483 pending ODOT layoffs that would have taken effect Oct. 15.
  • Advocates warn HB 3991 is only a temporary fix that does not reduce emissions or secure transit funding, while Republicans in Oregon pledge a 2026 referendum and the payroll tax expires in 2028.
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Oregon Capital ChronicleOregon Capital Chronicle
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Oregon Senate passes $4.3 billion transportation package

Trucks and buses drive in Portland. (Photo courtesy of the Oregon Department of Transportation/Flickr)The Oregon Senate on Monday in a party-line 18-11 vote passed a long-awaited transportation bill that will update the state’s funding sources for road maintenance and operations.  House Bill 3991 will raise about $4.3 billion over the next 10 years to fund road maintenance and operations by raising the gas tax by six cents, nearly doubling most …

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The Oregonian broke the news in Portland, United States on Monday, September 29, 2025.
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