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Oregon Gov. Tina Kotek has unveiled the details of a potential funding solution to preserve state transportation and maintenance services.

, revealed Thursday, would deliver funding for the State Highway Fund in the 2025-2027 biennium, while maintaining Oregon’s emergency funds for urgent needs, such as wildfire suppression, a press release states.

Due to a budget gap, the Oregon Department of Transportation (ODOT) must make severe budget cuts, according to the proposal. Without intervention, this would lead to hundreds of layoffs and reduce state and local services. Also, 12 maintenance facilities across the state would need to close.

On July 21, legislative leaders committed to finding a funding solution during a special session and pledged to backfill dollars if needed. Kotek then directed ODOT to postpone the first wave of layoffs until Sept. 15, allowing time to reach a funding solution. However, those layoffs, and a second wave of layoffs scheduled for January 2026, will take place if additional revenues are not secured during a special session, the proposal states.

As part of the proposal, half of the revenues from the gas tax, registration fees and title fees would go to ODOT to prevent layoffs, service reductions, and maintenance station closures. Remaining state highway dollars would flow to counties and cities as part of the traditional 50/30/20 split.

The plan calls for a six-cent increase to the state’s gas tax, a $42 increase for car registrations and a $139 increase to title fees.

Additionally, funding from the 0.1 percent payroll tax increase would be directed to the Statewide Transportation Improvement Fund to prevent additional layoffs and maintain services within transit districts across the state.