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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 it moved forward Sunday, aiming to avert layoffs at the Oregon Department of Transportation .
  • Democratic leaders revised the package after months of talks, focusing on affordability and functionality by proposing a payroll tax increase ending after two years, with HB 3991 gaining broad coalition support.
  • By number, HB 3991 raises the gas tax from $0.40 t to $0.46 t, doubles the transit payroll tax to 0.2% until Jan. 1, 2028, and hikes registration and title fees while phasing in a mandatory EV road-usage charge.
  • With votes imminent, Oregon Department of Transportation faces nearly 500 layoffs unless the Senate approves funding, while legislative revenue analysis indicates HB 3991 would raise around $4.3 billion over the next decade.
  • Committee members voted along party lines to advance the measure, with Democratic lawmakers holding supermajorities allowing passage without Republican support.
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KOIN 6 broke the news in Portland, United States on Sunday, August 31, 2025.
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