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The Oregon Legislature‘s upcoming special session focusing on transportation funding may deal a major setback for tolling in the state 鈥� except for the Interstate Bridge replacement project.

Gov. Tina Kotek on Wednesday called for repealing a 2017 law that provides the framework for tolling on interstates 5 and 205.

Key state lawmakers, including Sen. Mark Meek, D-Gladstone, have urged the repeal of the law as part of anticipated legislation to fund the Oregon Department of Transportation.

鈥淭here will be language in the bill to repeal ORS 383.150,鈥� Kotek said in remarks to reporters, in reference to the 2017 tolling law.

Kotek acknowledged that the idea of tolling Oregon drivers had not shifted out of park.

鈥淲e are in a pause across the system on tolling, outside of the Interstate Bridge,鈥� she said.

Kotek’s comments were part of a broader outline of plans for the special session set to begin Aug. 29. On Tuesday, the governor said she would invoke her authority to reconvene the Legislature for the session.

The effort comes after the Legislature failed to pass a transportation funding bill in the regular session that ended June 27.

Kotek said Wednesday that she wants to keep the special session tightly focused on funding ODOT’s regular operations. Funding for the state’s infrastructure mega-projects is not expected to come out of the special session, Kotek said

The governor urged action, saying it’s needed to avoid layoffs at ODOT. The agency has already notified 483 workers of impending layoffs without forthcoming funding. Additional layoffs would follow early in 2026.

鈥淭hese dollars will cover the ODOT budget to provide basic services for Oregonians and prevent layoffs of workers that provide basic services to Oregonians,鈥� Kotek said.

Kotek gave the broad framework of a transportation funding bill but did not say how much it would cost. Among the bill’s elements:

鈥� The state’s gas tax would rise 6 cents, from 40 cents to 46 cents per gallon.

鈥� A $30 electric vehicle fee would be implemented.

鈥� Vehicle registration and title fees would also rise.

鈥� The payroll tax to pay for transit would double from 0.1 percent to 0.2 percent. Kotek said the increase is necessary to keep rural transit systems alive.

鈥� The governor would have greater ability to fire the ODOT director. A 2017 transportation bill gave the Oregon Transportation Commission more authority over ODOT’s executive.

Kotek said she wouldn’t dwell on the transportation bill’s failure during this year’s regular session. She added that Oregon should consider funding transportation more often, on an annual or biennial basis, rather than in bigger cycles.

While Clackamas County lawmakers and others are likely to welcome a major setback for tolling, an industry official questioned how Oregon will pay for its major infrastructure projects without those revenues.

鈥淚t’s concerning to move away from any tolling, especially when tolling was how those projects were going to pencil out,鈥� said Kirsten Adams, a lobbyist for the Associated General Contractors‘ Oregon-Columbia chapter.

Meek said it’s 鈥済reat news鈥� that Kotek will push to repeal the 2017 law. He added that he’d be open to tolling in the future to pay for the state’s mega-projects.

鈥淚 think there is room for tolling for the metro area to help pay for our mega-projects. I just want there to be a more open conversation about it,鈥� he said.

Meek said he envisioned a London-style tolling area, where drivers would be tolled coming into the Portland-metro area from Hood River in the east, U.S. Route 26 from the Oregon Coast in the west, Interstate 5 near Aurora in the south and the Glenn L. Jackson Memorial Bridge (Interstate 205) at the Washington state border in the north.

Adams praised Kotek’s bid to seek greater accountability from ODOT leaders, and added that Oregon needs a better way of paying for mega-projects.

鈥淲e’re looking for a long-term funding solution for those bigger projects, knowing that’s important for the infrastructure in our state, the mobility in our state, and knowing they’re really expensive,鈥� she said.

Kotek told journalists she has the votes to pass a transportation package, and that she is not concerned that a potential walkout by Republicans would deprive the Legislature of a quorum. Meek agreed.

鈥淪he would not have called this if she did not have a quorum and the votes to pass,鈥� he said.