Oregon’s New Transportation Funding Package Faces Opposition as Signature Campaign Begins

Oregon’s New Transportation Funding Faces Opposition as Signature Campaign Begins

Salem, OR — In a significant development for Oregon’s infrastructure, Governor Tina Kotek has officially signed House Bill 3991, a multibillion-dollar transportation funding package aimed at improving roads and public transit across the state. However, the bill’s passage has ignited a fierce backlash from Republican lawmakers and taxpayer advocates, who are mobilizing to challenge key tax increases included in the legislation.

The bill, which was signed into law on November 7 after a month-long delay, is projected to generate approximately $4.3 billion over the next decade for road maintenance and transportation services. This funding is crucial, especially as the Oregon Department of Transportation (ODOT) faces a potential $300 million budget shortfall that could lead to layoffs and service cuts, including vital winter road plowing.

State Rep. Ed Diehl, R-Scio, and Senate Minority Leader Bruce Starr, R-Dundee, are spearheading a petition drive to gather around 78,000 signatures by December 30 to refer the new taxes to voters. Their coalition, which includes over 2,000 volunteers from the Taxpayers Association of Oregon, aims to collect at least 100,000 signatures to ensure the issue appears on the November 2026 ballot.

“We’re ready,” Diehl declared, emphasizing the urgency of their campaign. The proposed tax increases include a 6-cent hike to the existing 40-cent-per-gallon gas tax, increases in vehicle registration and titling fees, and a temporary doubling of a payroll tax that funds public transit.

Starr echoed Diehl’s sentiments, stating, “Oregonians will not be silenced, and their voices will not be ignored.” He stressed the importance of holding leaders accountable for the transportation system funded by taxpayer dollars.

While the petitioners face a tight deadline, the success of their campaign could create significant challenges for Kotek and other Democratic leaders. If they manage to place the tax increases on the ballot, implementation would be delayed until voters have their say, potentially exacerbating ODOT’s financial woes and leading to severe service reductions.

Before the passage of HB 3991, ODOT had warned of possible layoffs affecting nearly 10% of its workforce, alongside cuts to essential services. Kotek has been vocal about the necessity of the funding, stating, “This bill helps us to keep highways and local roads safe and open to traffic while preserving transit service and halting the pending layoffs of essential transportation staff.”

As the clock ticks down on the signature collection period, the outcome of this political battle remains uncertain. The stakes are high, not just for the future of Oregon’s transportation infrastructure, but also for the political landscape as both sides prepare for a potentially contentious fight over the state’s fiscal priorities.