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Oregon voters reject Democrats’ gas tax increase as Iran war causes prices to soar

More than 83% of votes tallied Tuesday evening opposed Measure 120, leaving state leaders without new transportation funding, officials said.

  • On Tuesday, Oregon voters rejected Measure 120 with more than 83% opposing the referendum, effectively blocking a Democratic-backed bill that raised the state gas tax from 40 to 46 cents and increased transportation fees.
  • Republican leaders gathered signatures to force the measure onto the ballot after the Democratic-controlled Legislature passed the tax increase last fall to address declining gas tax revenue from fuel-efficient vehicles.
  • Citing soaring gas prices from the U.S. and Israel's war in Iran, voters overwhelmingly opposed the measure; 79-year-old Sister Barbara Julian of Bend said taxes were "too high" and needed to be cut.
  • Transportation agencies now face funding gaps for road and bridge maintenance as state leaders declined to actively campaign for the measure's passage, leaving infrastructure costs to potentially increase.
  • Governor Tina Kotek is now drafting a new funding plan for the upcoming legislative session, while Republicans aim to leverage the results to challenge national Democratic messaging about affordability in midterm elections.
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Associated Press News broke the news in United States on Tuesday, May 19, 2026.
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