The Oregon House has pushed through Governor Tina Kotek’s controversial transportation funding bill during a special session. The measure, House Bill 3991, now heads to the Senate for debate and a likely final vote later this week.
The bill was born after lawmakers failed to pass a transportation package earlier this year, leaving a massive hole in ODOT’s budget. Monday marked day three of the emergency session, and with pressure mounting, House Democrats rallied behind the plan while Republicans pushed back hard.
After committee wrangling on Sunday, the bill cleared with a 7 to 5 vote and two key amendments. One restricts the Department of Administrative Services to lowering, not raising, gas and per-mile taxes. The other sets an expiration date on the payroll tax hike, sunsetting in January 2028.
When the bill hit the House floor Monday, it passed with the majority. It was read once in the Senate that afternoon, but Republicans blocked efforts to fast-track it. That means a second reading comes Tuesday and, if all goes according to plan, a final Senate vote Wednesday.
Democrats, who hold three-fifths majorities in both chambers, are positioned to muscle the bill through, but attendance is key. Senator Chris Gorsek of Gresham was excused Monday, and his absence could complicate things if he doesn’t return by Wednesday. Meanwhile, Senator Mark Meek, who opposed an earlier version, has signaled his support this time around.
Supporters argue the bill is essential. House Majority Leader Ben Bowman of Tigard said it will keep maintenance stations open, ensure thousands of miles of road get plowed in winter, and maintain safety for emergency responders.
Republicans painted a far different picture. House Republican Leader Christine Drazan blasted the bill as “a massive tax increase that ignores the voices of thousands of Oregonians.” She accused Democrats of doubling payroll taxes on Labor Day, while also hiking gas and DMV fees, all against the clear objections of working families.
The bill’s centerpiece is a 6 cent increase in the state gas tax, bringing it to 46 cents per gallon. For a two-car household driving 12,000 miles per year per vehicle, that adds about 58 dollars annually. The payroll tax would double from 0.2 percent to 0.4 percent. For a household earning 100,000 dollars a year, that’s another 200 dollars. Together, these hikes mean roughly 258 dollars more out of pocket.
But Oregon drivers are already paying some of the highest gas prices in the nation. The state average sits at 3.98 dollars per gallon, about 84 cents higher than the national average of 3.14. That difference alone costs a two-car family about 807 dollars more per year compared to the national average. Add the new taxes at 258 dollars and the Clean Fuels surcharge of about 95 dollars annually, and Oregon families could soon be paying more than 1,100 dollars extra every year just to keep their cars on the road.
ODOT and transportation agencies have warned that without new revenue, highway maintenance, plowing, and critical road projects could grind to a halt. Governor Kotek is expected to sign the measure if it reaches her desk by the end of the week.
But for countless Oregon families, this legislation feels less like relief and more like another financial squeeze. With grocery bills, rent, and utilities already climbing, another thousand dollars a year at the pump and in paychecks isn’t just an inconvenience, it’s the difference between staying afloat or falling further behind.
Source: KATU
