FOR IMMEDIATE RELEASE – September 29, 2025

Oregon Lawmakers Pass Transportation Funding Stopgap, Leaving Critical Investments in Safety and Climate for Another Session

SALEM, Ore. — Oregon lawmakers approved a transportation funding stopgap in the special session that ended Monday. 

This bill increases funding for public transit and saves Oregon jobs that maintain our roads and bridges. It also disproportionately raises fees for drivers of electric vehicles and ends current transit funding rates in 2028, which will have far-reaching consequences on climate, public safety, and transportation access. The latter ignores months of public input where “funding for transportation” was deemed a top priority statewide.

Move Oregon Forward, a coalition of thousands of advocates focused on transportation, climate, and equity, voiced concerns about the package. The coalition believes in a transportation system that is safe, affordable, and clean, with reliable transit options and clean air for every community. They say this bill represents a missed opportunity to move meaningfully toward that vision, leaving critical work still ahead.

Transit Funding in Jeopardy

Although the bill doubles Oregon’s payroll tax for transit to 0.2%, the revenue is temporary as lawmakers set the tax increase to sunset in 2028. The result leaves the future of public transit funding totally uncertain. Rolling back a modest funding increase in just two years will undermine any progress, bringing service cuts, longer wait times, and reduced access to jobs, schools, and healthcare. Declines in transit infrastructure hit working families, seniors, people with disabilities, and rural residents hardest.

For riders, the impacts will be immediate and personal. “I use transit to keep my life moving and reduce my transportation costs,” said Cassie Wilson, Legislative Manager of 1000 Friends of Oregon. “For me and so many others, service cuts mean longer waits, fewer options, and more economic uncertainty. We need the legislature to build a transportation system for the future, not just short-term fixes.”

Safety, Equity & Climate Concerns

Oregon has adopted statewide goals to lower traffic deaths and cut climate pollution. MOF advocates point to strong investments in public transit, walking, biking, and community-driven programs as solutions for both. The bill leaves out funding for key safety projects near schools, off-street paths, and main streets. Advocates warn the move could lead to more dangerous roads and slow economic growth.

For years, electric vehicle owners have paid less in fees compared to their gas-engine counterparts, and Move Oregon Forward and electric vehicle drivers agree that they are open to paying their fair share to upkeep Oregon’s roads. Yet, in HB 3991, MOF sees the mandatory road usage charge as unfair, penalizing drivers who choose cleaner vehicles, potentially making EVs one of the most expensive ways to drive.

House Bill 3991 raises the state gas tax from 40 to 46 cents per gallon starting in 2026. At the same time, annual vehicle registration fees will increase by $42, and fees for titles will jump by $139. Fuel-efficient and electric vehicle owners will also see higher surcharges, with a mandatory road usage charge for EVs and hybrids phasing in by 2027.

While some lawmakers considered more progressive revenue options, they ultimately pursued what advocates call a narrower path. Move Oregon Forward said that while this budget band-aid addresses short-term road maintenance needs, it prioritizes quick fixes over long-term solutions. As MOF has expressed, communities will be left with a system ill-equipped to meet future challenges.

The Uphill Climb and Next Steps for Advocacy

Move Oregon Forward sees this bill as the beginning of a longer fight. “In the 2026 short session, we need to fix issues like the Road Usage Charge and EV taxes, along with new accountability and revenue tools. By 2027, we aim to deliver a truly fair, safety-forward, climate-smart transportation package that serves everyone in Oregon,” Kristopher Fortin Grijalva, Transportation Program Director at Oregon Environmental Council.

For now, this decision marks a step backward for advocates who have spent months urging lawmakers to center climate, safety, and equity in Oregon’s transportation planning. Whether those priorities can regain traction will depend on the battles ahead in Salem and on how communities organize to demand change.

###

For Media Contact:

Cassie Wilson, cassie@friends.org (503) 694-3893

Kristopher Fortin Grijalva, kristopherf@oeconline.org (971) 343-1508