Chuck Slothower//November 10, 2025//
Oregon Gov. Tina Kotek has signed into law a transportation funding bill that is expected to soon generate more than $1 billion every two years.
The legislation hikes taxes and fees to fund maintenance and operations at the Oregon Department of Transportation and transit agencies.
“This bill will help us keep state highways and local roads safe and open to traffic while preserving transit service and halting the pending layoffs of essential transportation staff,” Kotek stated on Monday.
The governor’s signing statement was dated Friday, indicating she signed the bill that day.
House Bill 3991 is expected to raise $791 million in the current 2025-27 biennium, and then $1.1 billion in 2027-29 and $1.2 billion in 2029-31.
The bill raises revenue by increasing the gas tax by 6 cents to 46 cents per gallon, along with steep increases to vehicle registration and title fees. Also, the state’s payroll tax will double, to 0.02 percent, effective Jan. 1.
Kotek also agreed to repeal a mandatory tolling program that was called for in 2017 legislation. That came at the behest of several lawmakers, including Sen. Mark Meek, a Clackamas County Democrat.
The bill came together in a special session that spanned August and September after the Kotek administration sent layoff notices to hundreds of ODOT employees and began canceling minor road projects around the state.
Kotek signed the bill nearly a full month after it hit her desk, and even longer after the bill passed on Sept. 29. The timing delayed opponents from beginning to collect signatures for a threatened referendum.
Senate Republican leader Bruce Starr, R-Dundee, in a news release, charged that Kotek “ignored thousands of Oregonians who pleaded with her not to add more financial burden to their already expensive everyday lives.”
Voters “will have the opportunity to weigh in, hold their leaders accountable and demand a transportation system that works for the people who pay for it,” Starr added.