Oregon Senate Passes $4.3B Transportation Bill

The Oregon Senate passed House Bill 3991 on an 18-11 party-line vote, sending the stopgap transportation funding measure to Gov. Tina Kotek and averting imminent layoffs at the Oregon Department of Transportation. The bill raises the gas tax by six cents, increases title, registration and other DMV fees, bumps the statewide payroll tax 0.1% for two years, and creates a phased-in road-usage charge for electric and hybrid vehicles — measures projected to generate roughly $4.3 billion over 10 years and about $587.3 million over the next two years. Lawmakers also approved a companion budget adjustment, HB 3992, as Democrats used their slim supermajority to pass the tax package over unified Republican opposition. Supporters said the funding is essential to maintain roads, bridges and regional services, including Central Oregon maintenance and winter plowing; opponents argued it disproportionately burdens struggling residents and urged alternatives. A Republican motion to refer the bill to voters failed on the floor, and the measure now awaits the governor’s signature.