Oregon Governor Tina Kotek is re-evaluating her stance on transportation funding amid a $242 million funding gap at the Oregon Department of Transportation (ODOT). Her new approach revolves around the potential repeal of House Bill 3991, which sought to address transportation funding through tax increases. This decision comes after a Republican-led campaign hindered the passage of the bill, which included crucial tax hikes.
Tina Kotek’s New Transportation Strategy
On January 29, 2025, Governor Kotek unveiled her revamped strategy during a transportation event in Portland. Her plan is characterized by three main components: redirect, repeal, and rebuild.
Key Components of the Transportation Plan
- Redirect: Introduce a bill to reallocate funding within ODOT’s budget, focusing on basic road maintenance.
- Repeal: Request the legislature to nullify HB 3991, thereby negating the upcoming November vote on tax increases.
- Rebuild: Develop a comprehensive long-term funding plan for ODOT by 2027.
Governor Kotek emphasized the potential consequences of her proposals, noting that hundreds of ODOT employees might face layoffs if these changes fail.
Support and Opposition
The governor’s new strategy aligns with the wishes of unions representing ODOT employees, particularly the Service Employees International Union Local 503. However, this plan has drawn criticism from different factions, including the Oregon Trucking Associations, which had supported the original bill due to proposed changes to freight hauler taxation.
Critics like Republican state Representative Ed Diehl argue that repealing the bill is an attempt to evade electoral accountability. Diehl believes voters should have the opportunity to decide on the tax increases.
The Political Landscape
Recently, Kotek’s administration has faced scrutiny for its management of transportation funding initiatives. Despite initial promises, the Democratic supermajority failed to gain support for HB 3991, which was expected to generate over $4 billion in revenue over ten years. This included a 6-cent increase to the state’s gas tax and substantial hikes in vehicle registration and title fees.
A signature collection campaign led by Diehl and Republican Senate Minority Leader Bruce Starr delayed the bill’s implementation until after a vote in November 2026.
Future Implications
Kotek’s decision to redirect funding might jeopardize several ongoing projects, including major highway expansions and infrastructure upgrades. If funding is shifted from these initiatives, Oregon risks losing federal matching funds, further complicating the state’s transportation budget.
As discussions continue, state lawmakers must identify resources for ODOT amid potential layoffs and ongoing staff vacancies. Kotek’s push for a transportation overhaul highlights the complex dynamics of state funding strategies and the ongoing debate over fiscal accountability and infrastructure priorities.
