by Mia Maldonado, Oregon Capital Chronicle
May 1, 2026
SALEM— It’s been almost a year since state lawmakers met in Salem for a six-month legislative session and failed to update the Oregon Department of Transportation’s revenue streams.
That legislative session resulted in two failed attempts to pass transportation funding bills, followed by a special session months later, when Democrats finally had the votes needed to pass a transportation package. But that package was so unpopular that nearly 250,000 Oregonians signed a petition to block several tax and fee hikes included in the law until a statewide vote. That vote is scheduled for the May 19 primary election.
That’s the situation state transportation leaders outlined Friday to a panel of experts tasked with finding a solution to Oregon’s transportation funding crisis.
Gov. Tina Kotek said she has a lot of confidence in the 12-member workgroup she convened, which includes longtime-transportation and business experts.
“We all depend on a reliable transportation system, and frankly, our system here in Oregon is showing its age and we have work to do,” Kotek told the group at its first Friday meeting at transportation department headquarters in Salem.”I believe we’re losing out on economic development in our state because we don’t have the consistency and certainty that we need.”
The workgroup set goals to find a sustainable solution to fund the state’s transportation needs while also keeping drivers safe, supporting transportation systems that strengthen the state’s economy, investing in transportation for all Oregonians and recognizing the unique transportation needs of rural and urban Oregonians.
What’s at stake?
It’s been nearly a decade since the state last updated its core transportation funding streams, or increased the gas tax, heavy trucking fees and registration and title fees.
About half of that revenue feeds into the State Highway Fund, which pays for the maintenance and operation of state roads, bridges and highways. The remaining half is split between counties and cities to support their own transportation infrastructure needs.
Since then, inflation has driven up the cost of materials and labor needed to fix the state’s roads, while revenue has remained the same or declined as more drivers switch to electric vehicles and no longer pay the gas tax.
Unlike states that rely on a vehicle sales tax, general sales tax, tolling or taxes based on a vehicle’s value upon registration, Oregon is highly reliant on user fees, said ODOT’s deputy director Travis Brouwer.
It’s ultimately up to the workgroup to determine if that model is sustainable — or to innovate new ways to raise revenue for the State Highway Fund.
“Without new revenue over about the next five years, more than 4,500 miles of county roads will go without critical maintenance work and then will quickly deteriorate beyond repair,” said Mallorie Roberts, the legislative affairs director for the Association of Oregon Counties.
For cities, it means more potholes and more frustrated constituents calling their city council about the damage to their cars, said Nicole Stingh, legislative director of the League of Oregon Cities.
Without new revenue, the state starting will only be able to afford paving the state interstates, ODOT chief engineer and administrator Tova Peltz told the group.
Lawmakers in February opted to leave 130 ODOT jobs vacant and redirect funding from programs and infrastructure projects that haven’t yet begun to cover the gaps left by the lack of new revenue.
That path, however, isn’t sustainable, said Kelly Brooks, Kotek’s transportation and economic development advisor.
“If you’re going to succeed, we’re going to have a wonderful framework for a 2027 package,” Brooks told the group. “If you don’t, we will keep heading down this path of canceling projects, cannibalizing programs and moving (funding) to the cover basics.”
The workgroup is expected to meet monthly through November, with final recommendations due to Kotek by the end of the year.
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