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Oregon House Passes Transportation Funding Package in Major Win for Democrats

The $4.3 billion bill aims to prevent 500 layoffs at the Oregon Department of Transportation and includes tax increases on gas, payroll, and vehicle fees, with some measures set to sunset by 2028.

  • House leaders sent House Bill 3991 to the Oregon House of Representatives floor after the Joint Special Session Committee on Transportation Funding advanced the bill to avert layoffs at the Oregon Department of Transportation .
  • Democratic leaders revised the package after months of talks, reducing transit funding and removing an automatic tax-hike provision to address affordability concerns.
  • By number, HB 3991 allows the Department of Administrative Services to adjust gas taxes and truck fees downward and includes a temporary increase to the transit payroll tax until 2028.
  • Analysts estimate HB 3991 will raise roughly $4.3 billion over a decade, with most revenue split between local governments and Oregon Department of Transportation, which faces nearly 500 layoffs without Senate funding.
  • Committee members voted along party lines to send the amended package to the House floor; Democratic lawmakers hold supermajorities enabling passage, while Republican lawmakers pressed HB 3982 as a non-tax alternative redirecting $134 million.
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KOIN 6 broke the news in Portland, United States on Sunday, August 31, 2025.
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