The Oregon Department of Transportation has begun issuing layoff notices to nearly 500 employees after lawmakers failed to pass a funding bill before the 2025 legislative session adjourned, Gov. Tina Kotek announced Monday. According to Kotek’s office, 483 employees—ranging from road maintenance crews to technical support and operations staff—will remain on the payroll through July 31. A second round of layoffs, potentially affecting another 100 to 200 workers, is tentatively planned for early 2026 if legislators do not address the agency’s $300 million budget shortfall. Combined with nearly 450 vacant positions that are also being eliminated, the cuts represent a reduction of over 900 jobs at ODOT, which Kotek described as the largest state government layoff in Oregon’s history.
“These layoffs constitute an emergency in Oregon’s transportation system that will hurt every part of Oregon,” Kotek said in a statement. “Come winter, without a shared commitment to solve this crisis from partners and lawmakers, Oregonians will be left out in the cold—literally.”
ODOT officials warn that the staffing cuts will have an immediate impact. The agency plans to slow work on pothole repairs, pavement maintenance, road striping, brush clearing, and fire prevention efforts. Roadside litter pickup, graffiti cleanup, and homeless camp cleanups will also be reduced. Kotek’s office noted that if funding shortfalls continue into winter, they will further affect deicing, snow and ice removal, and road closures, particularly in rural and mountainous areas where smaller crews will have to cover larger territories.
In addition to layoffs, ODOT is implementing cost-saving measures such as delaying vehicle replacements, reducing purchases of critical materials like sand and deicer, and closing a dozen maintenance stations across the state. Planned and existing infrastructure projects are also being canceled or postponed.
ODOT Director Kristopher Strickler described the situation as “shocking, scary and frustrating” in a late-night email to staff. “There will not be enough workers to provide the level of response Oregonians rely on, whether it’s filling a pothole or clearing safe passage for evacuation when a fire strikes,” he wrote.
The crisis emerged after lawmakers failed to agree on a funding package during the 2025 legislative session. Democrats proposed House Bill 2025 to raise nearly $14.6 billion over the next decade through increased gas and payroll taxes, higher vehicle licensing fees, and a new tax on car sales. A scaled-down version aimed at raising $2 billion also failed to advance.
Republicans opposed the tax increases, citing concerns over Oregon’s affordability crisis and arguing that new taxes would make it harder for families and businesses to keep up with rising costs. GOP leaders also criticized Democrats for bringing forward proposals late in the session and accused them of shutting Republicans out of key negotiations.
“Oregonians are already struggling under the weight of high taxes and fees,” one Republican lawmaker said. “We need to prioritize reforms and efficiencies at ODOT before asking taxpayers for more.”
Kotek has suggested she may call a special legislative session to revisit transportation funding, but no date has been announced. The situation highlights a broader challenge facing transportation agencies nationwide as gas tax revenues decline due to increased electric vehicle adoption and improved fuel efficiency.
