Governor Tina Kotek declares a special session, aimed at acquiring extra funding for transportation, to prevent job cuts.
Governor Tina Kotek has announced a special legislative session for August 29, 2025, in an effort to secure additional funding for the Oregon Department of Transportation (ODOT). The session aims to pass a funding bill to stabilize the state highway trust fund for the 2025-27 biennium, thus avoiding hundreds of layoffs at the state transportation agency[1][2].
The critical transportation funding gap stands at $354 million, and the special session will focus on near-term solutions to stabilize ODOT and local governments' transportation functions[1][2]. Governor Kotek has delayed the planned layoffs by 45 days, providing lawmakers a chance to act before more layoffs occur in early 2026[1][2].
While the specific funding plan for the session has not been fully detailed, it is expected to include a small increase to the state's 40 cents per gallon gas tax, a hike to the state's 0.1% payroll tax for transit, and an adjustment to the state's fees on trucking companies[1][2][4]. However, specific details have not been disclosed.
The proposed funding solution for next month includes adjustments to the state's gas tax, payroll tax for transit, and fees on trucking companies, but significant political negotiations and funding details remain to be finalized as of late July 2025[1][2][4].
Political dynamics remain challenging. Some Democrats, including Sen. Mark Meek, have conditioned support on repealing toll authority on Interstates 5 and 205. Republicans have opposed tax hikes and suggest repurposing existing funds, though they criticize the special session’s timing and transparency[1][2][4].
The postponement of layoffs allows impacted staff more time to make contingency plans for their livelihoods and their families. A watered-down proposal is expected to be passed next month to keep basic services in place and avert layoffs at the Oregon Department of Transportation[3].
Governor Kotek is confident that lawmakers will step up next month to pass a proposal for the Oregon Department of Transportation[1]. Without more funding, the Oregon Department of Transportation would close 12 maintenance stations across Oregon this summer and lay off hundreds of workers this winter[1][2]. Oregonians rely on services provided by the state transportation agency, including brush clearing to prevent wildfires and snow plowing in winter weather[1].
Any bill passed next month will be the first step of many that must be taken to meet Oregon's long-term transportation needs[2]. The failure to pass transportation funding proposals in the previous session resulted in the need for a special session to address the state transportation agency's funding shortfall[1][2]. The communication between Kotek and lawmakers has been ongoing since the session ended[1].
[1] - Oregon Public Broadcasting [2] - The Oregonian [3] - The Oregonian [4] - KGW
- The special legislative session, scheduled for August 29, 2025, focuses on securing additional funding for the Oregon Department of Transportation (ODOT) through policy-and-legislation, aiming to stabilize the state highway trust fund for the 2025-27 biennium.
- The proposed funding plan, expected to be passed in the upcoming session, includes adjustments to the state's gas tax, payroll tax for transit, and fees on trucking companies, although significant political negotiations and funding details remain to be finalized.
- Governor Kotek's confidence in lawmakers stems from the understanding that without more finance for ODOT, critical infrastructure services such as brush clearing to prevent wildfires and snow plowing in winter weather could be compromised, potentially impacting general-news and industry sectors in Oregon.
