Oregon Legislative Issues
Last updated October 9, 2025 by Eric Leaming, Oregon ITE Legislative Chair
Special Session Transportation Funding Bill Passes
Oregon’s legislature has passed HB-3991. The bill will raise transportation taxes and fees and phase in mandatory road usage charges for electric and hybrid electric vehicles (owners of those vehicles will have the option to pay a flat annual fee instead). Money from the increases will be split between ODOT (50%), counties (30%), and cities (20%) to pay for transportation maintenance and operations.
The bill also doubles the state’s payroll tax for pubic transit, but the increase ends in January 2028. That will not be enough to prevent service cuts at transit agencies like Trimet before the end of 2025. The bill also includes more audit oversight of ODOT’s use of the State Highway Fund and its capital projects.
Now that the bill has passed, ODOT has canceled its pending layoffs and the agency is moving to hire and train staff for winter operations, like plow drivers.
While the funding increase will help Oregon’s transportation agencies keep the state moving, it is a temporary measure and provides significantly less than what the governor asked for in the 2025-2027 biennium request budget. Revenue from the bill is expected to increase through the 2029-2031 biennium as new revenue sources come online and then flatten due to inflation.
Oregon Republicans are saying they will work to refer the tax increases to voters. The Secretary of State’s Elections Division outlines the referendum process in detail in their State Initiative and Referendum Manual. If Republicans successfully refer the bill to voters, the referendum would be on the November 2026 ballot.
Last updated October 9, 2025 by Eric Leaming, Oregon ITE Legislative Chair
Special Session Transportation Funding Bill Passes
Oregon’s legislature has passed HB-3991. The bill will raise transportation taxes and fees and phase in mandatory road usage charges for electric and hybrid electric vehicles (owners of those vehicles will have the option to pay a flat annual fee instead). Money from the increases will be split between ODOT (50%), counties (30%), and cities (20%) to pay for transportation maintenance and operations.
The bill also doubles the state’s payroll tax for pubic transit, but the increase ends in January 2028. That will not be enough to prevent service cuts at transit agencies like Trimet before the end of 2025. The bill also includes more audit oversight of ODOT’s use of the State Highway Fund and its capital projects.
Now that the bill has passed, ODOT has canceled its pending layoffs and the agency is moving to hire and train staff for winter operations, like plow drivers.
While the funding increase will help Oregon’s transportation agencies keep the state moving, it is a temporary measure and provides significantly less than what the governor asked for in the 2025-2027 biennium request budget. Revenue from the bill is expected to increase through the 2029-2031 biennium as new revenue sources come online and then flatten due to inflation.
Oregon Republicans are saying they will work to refer the tax increases to voters. The Secretary of State’s Elections Division outlines the referendum process in detail in their State Initiative and Referendum Manual. If Republicans successfully refer the bill to voters, the referendum would be on the November 2026 ballot.
Recap of Previous Legislative Sessions
2025 Legislative Session
There were 3466 bills, memorials, and resolutions introduced during the 2025 session and of those, the legislature passed 640.
2024 Legislative Session
There were 219 bills, memorials, and resolutions introduced during the 2024 session and of those, the legislature passed 135.
2023 Legislative Session
There were 2976 bills, memorials, and resolutions introduced during the 2023 session and of those, the legislature passed 653.
2022 Legislative Session
There were 275 bills, memorials, and resolutions introduced during the 2022 session and of those, the legislature passed 129.
2025 Legislative Session
There were 3466 bills, memorials, and resolutions introduced during the 2025 session and of those, the legislature passed 640.
2024 Legislative Session
There were 219 bills, memorials, and resolutions introduced during the 2024 session and of those, the legislature passed 135.
2023 Legislative Session
There were 2976 bills, memorials, and resolutions introduced during the 2023 session and of those, the legislature passed 653.
2022 Legislative Session
There were 275 bills, memorials, and resolutions introduced during the 2022 session and of those, the legislature passed 129.
National Legislative Issues
Manual on Uniform Traffic Control Devices (MUTCD)
The Federal Highway Administration published the Final Rule for the 11th edition of the MUTCD on December 19, 2023. Watch the MUTCD homepage for other announcements and materials from FHWA on the roll-out of the new MUTCD.
What does this mean for Oregon? The Oregon Transportation Commission has until January 2026 to adopt the new MUTCD for use in Oregon through an update to OAR 734-020-0005. Until then, the 2009 Edition of the MUTCD is still in effect in Oregon.
ODOT and the Oregon Traffic Control Devices Committee will be developing the Oregon Supplement to the 11th Edition of the MUTCD during this time. The supplement will adapt the federal edition for use in Oregon. Watch ODOT’s MUTCD page for updates on this effort.
Oregon MUTCD Implementation & Supporting Documents - This link provides access to an ODOT web page providing supporting documentation for Oregon adoption of the 2009 MUTCD and FHWA Interim Approvals in Oregon.
MUTCD Federal Register Notices- Information on Notices of Proposed Amendments (NPAs) and Final Rules (FRs) regarding the MUTCD.
Infrastructure Investment and Jobs Act (IIJA)
On November 15, 2021, President Biden signed into law the Infrastructure Investment and Jobs Act (IIJA). The wide-ranging infrastructure law provides funding for infrastructure projects and reauthorizes several surface transportation programs through fiscal year 2026. Notably, Section 11135 of the IIJA requires that USDOT update the MUTCD on a 4-year cycle.
Manual on Uniform Traffic Control Devices (MUTCD)
The Federal Highway Administration published the Final Rule for the 11th edition of the MUTCD on December 19, 2023. Watch the MUTCD homepage for other announcements and materials from FHWA on the roll-out of the new MUTCD.
What does this mean for Oregon? The Oregon Transportation Commission has until January 2026 to adopt the new MUTCD for use in Oregon through an update to OAR 734-020-0005. Until then, the 2009 Edition of the MUTCD is still in effect in Oregon.
ODOT and the Oregon Traffic Control Devices Committee will be developing the Oregon Supplement to the 11th Edition of the MUTCD during this time. The supplement will adapt the federal edition for use in Oregon. Watch ODOT’s MUTCD page for updates on this effort.
Oregon MUTCD Implementation & Supporting Documents - This link provides access to an ODOT web page providing supporting documentation for Oregon adoption of the 2009 MUTCD and FHWA Interim Approvals in Oregon.
MUTCD Federal Register Notices- Information on Notices of Proposed Amendments (NPAs) and Final Rules (FRs) regarding the MUTCD.
Infrastructure Investment and Jobs Act (IIJA)
On November 15, 2021, President Biden signed into law the Infrastructure Investment and Jobs Act (IIJA). The wide-ranging infrastructure law provides funding for infrastructure projects and reauthorizes several surface transportation programs through fiscal year 2026. Notably, Section 11135 of the IIJA requires that USDOT update the MUTCD on a 4-year cycle.