Oregon Governor Tina Kotek is now attempting to dismantle the very transportation tax package she aggressively pushed through a special legislative session just months ago. The reversal underscores what critics warned from the beginning. The plan was rushed, deeply flawed, and disconnected from the financial reality facing Oregonians.
Speaking this week at the Oregon Transportation Forum, Kotek outlined what she called a “redirect, repeal, and rebuild” approach. While framed as leadership, the move amounts to an admission that House Bill 3991, her signature transportation funding package, has effectively collapsed. The bill, promoted as an urgent solution to Oregon’s transportation crisis, is now frozen, legally stalled, and politically radioactive.
At the center of the fallout is a projected $242 million budget shortfall at the Oregon Department of Transportation. Kotek acknowledged the deficit could lead to hundreds of layoffs as early as this spring, potentially the largest workforce reduction in state government history. Those cuts would directly affect road maintenance, snowplow operations, emergency response times, and basic infrastructure safety.
This crisis did not come out of nowhere.
HB 3991 was passed during a September special session, with the governor arguing immediate action was necessary. The bill included a series of tax and fee increases that quickly drew backlash from the public. Republican lawmakers responded by launching a referral petition, which froze the revenue provisions and set the stage for a potential statewide vote.
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Rather than allowing voters to decide on the disputed taxes, the governor is now urging lawmakers to repeal the entire bill during the upcoming February legislative session.
Republicans argue the sudden change has less to do with responsible governance and more to do with political survival. Senate Republican Leader Bruce Starr said the governor is not backing away because the policy was flawed but because Oregonians forced her hand.
Hundreds of thousands of Oregonians signed petitions opposing the tax hike and demanding accountability. Critics point out that instead of repealing only the provisions referred to voters, Kotek is seeking to erase the entire bill. That move conveniently prevents the tax package from appearing on the ballot and shields it from direct voter judgment.
Meanwhile, ODOT has been left in limbo. With the revenue frozen, the agency is still required to absorb implementation costs tied to the bill, now without the funding that was supposed to support them. The governor has made clear that general fund dollars will not be used to fill the gap, leaving lawmakers scrambling to redirect existing transportation funds just to keep essential services running.
Union leaders and transit advocates warn that failure to act will endanger public safety. Critics counter that these warnings are the predictable result of a bill that was never structurally sound and never had broad public support.
The governor insists the package was never meant to be permanent. That raises a larger question. Why was such a sweeping tax proposal rushed through a special session without voter approval, long term planning, or a reliable funding backstop?
For many Oregonians, this episode fits a familiar pattern. Major tax and spending proposals are pushed through Salem with urgency, followed by confusion, reversals, and warnings of catastrophe when they unravel. Kotek has promised a bipartisan process to rebuild transportation funding ahead of the 2027 legislative session, but that promise comes after a year of political whiplash and declining trust.
What was billed as an urgent solution has become a cautionary tale. While the governor frames repeal as responsible leadership, critics see it as a tacit admission that House Bill 3991 was never ready, never popular, and never built to withstand public scrutiny.
With layoffs looming, lawmakers under pressure, and voters increasingly skeptical, the consequences of this failed transportation plan are still unfolding. Once again, Oregonians are left dealing with the fallout of rushed policymaking and political miscalculations in Salem.
