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Layoffs or Redirecting Funding: Oregon Lawmakers Grappling Again with ODOT's Budget Gap

Lawmakers face options to close a $242 million Oregon Department of Transportation budget gap, risking up to 400 layoffs or redirecting funds from major infrastructure projects.

  • On February 11, Oregon lawmakers debated how to fill a $242 million gap in the Oregon Department of Transportation's 2025-27 budget after informational hearings this week.
  • Because the referendum pause removed expected revenue, the Republican-led No Tax Oregon campaign halted anticipated funds, leaving limited options for ODOT to fill the shortfall, lawmakers debate moving the vote to May.
  • ODOT proposed three personnel tiers, with tier two saving $140 million by 71 layoffs, and tier three including 400 layoffs to save $242 million, according to agency leaders.
  • Union leaders warn that proposed cuts would leave 700 vacancies, with coastal crews managing 304 shoulder miles, risking DMV office closures, as workers cover multiple roles, ODOT said.
  • A review of unobligated funding shows that reallocations require legislative action and are constrained by legal limits, with up to $137 million from House Bill 2017 scenarios, Oregon Legislature said.
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Layoffs or redirecting funding: Oregon lawmakers grapple with ODOT budget gap again

Oregon lawmakers are once again discussing ways to fill a massive shortfall within the Oregon Department of Transportation’s budget — except this time they can’t raise taxes or fees.

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Statesman Journal broke the news in on Wednesday, February 11, 2026.
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