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Oregon's Governor Changes Course on Transportation Bill

Oregon, Portland, USAThursday, January 8, 2026
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Oregon Governor Tina Kotek has had a sudden change of heart about the transportation bill she recently pushed through. After a lot of effort to get it passed, she now wants to scrap the whole thing. This comes after Republicans successfully blocked the tax hikes that were supposed to fund the Oregon Department of Transportation (ODOT).

Kotek's New Plan: Redirect, Repeal, Rebuild

Kotek's new plan involves three main steps:

  1. Redirect: Pass a bill that frees up money within ODOT's budget for basic road maintenance. This money is currently earmarked for specific projects.
  2. Repeal: Repeal the entire bill she just passed. This would cancel a planned vote on the tax increases and also get rid of other changes, like a new way to tax freight haulers.
  3. Rebuild: Come back in 2027 with a more comprehensive plan for funding ODOT.

Mixed Reactions

Kotek's proposal has drawn mixed reactions:

  • Unions representing ODOT workers support it, as it aligns with their interests.
  • Oregon Trucking Associations, which supported the original bill because it simplified their tax system, opposes the repeal.
  • Republican lawmakers, who led the campaign to delay the tax hikes, also oppose the repeal, arguing that it's an attempt to avoid responsibility.

Kotek's Argument

Kotek argues that it's irresponsible to take on new costs without new money. The original bill included creating a new system for charging electric and hybrid vehicle drivers for the miles they drive. Leaving the law in place would force ODOT to bear implementation costs without new resources.

Legislative Struggle

The situation is a result of a year-long legislative struggle. Democrats wanted to shift Oregon's paradigm for funding roads, but their efforts were plagued by mismanagement. They couldn't find enough support for their proposal, leading to a shambolic special session that cost taxpayers $270,000.

Potential Drawbacks

The proposal to redirect ODOT spending could have drawbacks. The state has set aside hundreds of millions of dollars for long-planned highway megaprojects, including:

  • An expansion of Interstate 5 through Portland's Rose Quarter
  • A replacement of the Interstate Bridge between Oregon and Washington

Delaying these projects could make them more expensive and cause the state to lose federal matching funds.

Republican Criticism

Republicans have mocked Kotek's reversal, arguing that they introduced a similar plan nearly a year ago. However, Kotek opposes a major feature of the Republican plan: gutting state spending on public transit.

Budget Uncertainty

It's not currently clear how much money lawmakers will need to identify to avert layoffs at ODOT. While the agency says it has a $242 million hole in its current two-year budget, it also has more than 600 vacant full-time positions.

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