Governor Tina Kotek Orders Immediate Spending Cuts Amid $370 Million Budget Shortfall
Governor Kotek directs agencies to cut spending and suspend non-essential travel to address a $370 million budget gap caused by federal policy changes, with further reductions expected.
- On September 16, Governor Tina Kotek instructed Oregon agency leaders to implement urgent budget-saving actions and get ready for additional spending cuts in response to a $373 million projected deficit.
- This shortfall arose after federal policies, including the July passage of H.R. 1 by Congress, reduced Oregon's expected revenue by about $888 million for the 2025-27 budget cycle.
- Kotek mandated an immediate halt to all unnecessary travel outside the state and instructed agency leaders to reduce spending by keeping positions vacant longer, cutting costs, and postponing new initiatives as lawmakers work on proposals to increase taxes and fees.
- The projected General Fund revenues dropped from $35.6 billion to $34.9 billion, and Kotek emphasized, “I am directing state agencies to prepare for further reductions” while protecting core services.
- These measures aim to address the immediate gap, but additional spending targets will be set by Oregon's chief financial officer and further legislative discussions are scheduled during September 29 Legislative Days.
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Governor Tina Kotek sends Letter to State Agencies; Halting Non Emergency Out of State Travel and to Prepare for Budget Cuts
BEND, Ore. (KTVZ News) -- Governor Kotek sent a letter on Tuesday to all the head's of State Agencies telling them to immediately halt any out of state non emergency travel and to prepare for budget cuts. This comes after the budget passed back in June with a budget surplus of four hundred and 37 million

Oregon Gov. Kotek tells state agencies to stop travel, prepare for budget cuts
Gov. Tina Kotek delivers her State of the State address on Monday, Jan. 13, 2025. (Photo by Laura Tesler/Oregon Capital Chronicle/Pool)Gov. Tina Kotek ordered an immediate halt to state employees’ non-essential out-of-state travel and directed agencies to find more ways to cut costs on Tuesday after Oregon’s budget surplus from a few months ago turned into a nearly $375 million shortfall. In a letter to all state agency directors, Kotek wrote th…
Gov. Tina Kotek tells state agencies to cut their spending, travel now in response to Trump tax cuts
Gov. Tina Kotek on Tuesday sent the heads of Oregon agencies a missive to tighten their belts to help close a projected $370 million hole in the state’s two-year budget caused by policies adopted by the federal government.
Oregon Gov. Kotek tells state agencies to stop travel, examine projects and prepare for budget cuts • Lincoln Chronicle
Gov. Tina Kotek ordered an immediate halt to state employees’ non-essential out-of-state travel and directed agencies to find more ways to cut costs on Tuesday after Oregon’s budget surplus from a few months ago turned into a nearly $375 million shortfall. The post Oregon Gov. Kotek tells state agencies to stop travel, examine projects and prepare for budget cuts appeared first on Lincoln Chronicle.
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