The Oregon Legislature plans to meet for the third day of a special session on transportation funding on Labor Day, with the House of Representatives convening at 10 a.m. for third reading and debate on the package of bills sponsored by Gov. Tina Kotek.
The Senate is scheduled to begin considering the measures at 2 p.m. on Sept. 1.
Follow along as legislative reporter Dianne Lugo, state government reporter Anastasia Mason and photographer Abigail Dollins cover the special session on Labor Day.
How we got here
The 2025 Legislature adjourned on June 27 without passing a transportation bill, leaving the Oregon Department of Transportation short about $300 million to maintain service levels for the two-year budget cycle that began July 1.
Kotek announced layoffs of 483 ODOT workers and the closure of a dozen maintenance stations across the state. The layoffs and closures were later put on hold, pending the outcome of the special session.
Two last-minute amendments from House Speaker Julie Fahey, D-Eugene, were adopted Aug. 31 by the Joint Special Session Committee on Transportation Funding after the second public hearing on the bills.
One of Fahey’s amendments would eliminate a 0.1% increase to the payroll tax in House Bill 3991 after Jan. 1, 2028.
The other amendment gives the Department of Administrative Services the ability to lower tax rates, but not to raise them, if the rates paid by heavy and light vehicles reach a certain imbalance.
“Getting here has been a long road, but the result is a bill that ensures that cities, counties, and the state will be able to perform basic maintenance and safety work on our roads — filling potholes, plowing snow in the winter, and making sure our bridges don’t fall down,” Fahey said after the House committee adjourned.
What Gov. Tina Kotek’s transportation funding bills would do
The governor’s amended transportation package is estimated to raise $4.3 billion over the next 10 years. Her bills include:
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A 6-cent increase to the state gas tax for a total of 46 cents per gallon
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A $42 and $132 increase in vehicle registration and title fees
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A doubling of the 0.1% payroll tax to fund public transit until Jan. 1, 2028.
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A $30 supplemental registration fee for electric vehicles, and
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A new “road usage charge” to be phased in for electric and hybrid cars starting in 2027.
House Bill 3991 also would repeal mandatory tolling language from the existing statute, which Kotek paused in 2024, and transfer power to the governor to appoint and fire the director of the ODOT. The last major transportation bill, passed in 2017, gave the power to hire and fire the head of ODOT to the Oregon Transportation Commission.
Anastasia Mason covers state government for the Statesman Journal. Reach her at acmason@statesmanjournal.com or 971-208-5615.
Dianne Lugo covers the Oregon Legislature and equity issues. Reach her at dlugo@statesmanjournal.com or on X @DianneLugo or Bluesky @diannelugo.bsky.social
This article originally appeared on Salem Statesman Journal: Oregon Legislature meets in special session Labor Day weekend
