Oregon Legislative Issues
Last updated February 3, 2026 by Eric Leaming, Oregon ITE Legislative Chair
2026 Legislative Session
The 2026 legislative session runs February 2 thru March 8. This is the short session, so bills and ideas can change quickly as short deadlines compress the legislative process. Here are transportation-related bills of interest.
Bills that require ODOT to study the development of uniform standards for speed bump height and markings are placeholder bills (like SB-1544). If the bill moves forward, it will have an amendment that changes the bill to something else within the scope of the bill’s “relating to” clause.
Parts of Transportation Funding Bill Referred to Voters; Governor Calls for Redirecting Existing Funds
The Oregon Legislature passed HB-3991 last fall to increase funding for transportation maintenance and operations. The bill was set to raise transportation taxes and fees and phase in mandatory road usage charges for electric and hybrid electric vehicles (owners of those vehicles would have the option to pay a flat annual fee instead). Money from the increases would have been split between ODOT (50%), counties (30%), and cities (20%) and would have included a temporary increase in the payroll tax for transit.
After the bill passed, a referendum effort successfully gathered enough signatures to refer parts of the bill increasing taxes and fees to Oregon voters. This has paused the tax and fee increase from the bill until Oregon voters weigh in.
Until the election – or until the Legislature takes other action – the transportation funding gap remains. ODOT’s latest estimate for its own budget is a $242 million shortfall. And ODOT must still implement parts of HB-3991 that were not part of the referendum without new resources. TriMet is cutting services to bridge a $300 million gap.
Where does Oregon go from here? That depends on the Legislature. They will meet for their regular session that runs February through early-March and could act on a variety of options. At the January 7, 2026 Oregon Transportation Forum, Governor Kotek called for the Legislature to repeal HB-3991 and pass a new bill redirecting existing money within ODOT’s budget that is dedicated to specific projects by law. Since then, a 1935 Oregon attorney general opinion surfaced saying the Legislature can’t repeal a law once it’s been referred to the ballot. So, voters will weigh in on the referred portions of HB-3991 in 2026.
Governor Kotek also called for the Legislature to work on another long-term transportation funding plan for the 2027 session. For now, the transportation funding focus is on the immediate future.
Last updated February 3, 2026 by Eric Leaming, Oregon ITE Legislative Chair
2026 Legislative Session
The 2026 legislative session runs February 2 thru March 8. This is the short session, so bills and ideas can change quickly as short deadlines compress the legislative process. Here are transportation-related bills of interest.
- SB-1542 – Directs the Oregon Transportation Commission to create a 10-year capital investment plan
- SB-1543 – Modifies membership of the Oregon Transportation Commission
- SB-1552 – Requires the county clerk to notify the owner of real property when an instrument affecting the title to the property is presented for recordation unless presented by a financial institution, an insurer or an attorney, or an employee or agent of the professional person.
- SB-1585 – Sets maximum matching fund requirements for state grants to small incorporated cities for capital construction and municipal infrastructure.
- HB-4007 – Transportation omnibus bill. Defines “powered micromobility device,” changes helmet requirements, and adds age requirements for e-bikes. Also establishes a pilot program to allow heavier trucks carrying fluid milk products on select highways.
- HB-4008 – Establishes the Transit Funding Task Force and directs the task force to report to an interim committee of the Legislative Assembly related to transportation no later than December 15, 2026.
- HB-4009 – Phases in a mandatory per-mile road usage charge for registered owners and lessees of electric and hybrid passenger vehicles and delivery vehicles engaged in e-commerce.
- HB-4010 – Requires contracting agencies that procure public improvement contracts or contracts for public works and require additional work outside the scope set forth in the public improvement contract or contract for public works to issue change orders for the additional work within a specific time or to pay interest for failing to do so.
- HB-4019 – Requires certain agencies to base approval or denial of an application for a new permit on the rules and standards that are applicable at the time that the agency determines the application is complete.
- HB-4020 – Requires certain agencies to specify the authority justifying the denial of a permit application and provide the applicant a guide on how to contest the denial.
- HB-4023 – Restores the restrictions on methods of financing for certain mass transit districts.
- HB-4035 – Expands eligibility for cities and Metro to amend their urban growth boundaries under a temporary program.
- HB-4081 – Makes changes to the highway worker photo radar laws. Requires ODOT to establish a work zone photo radar program in coordination with Oregon State Police.
- HB-4084 – Establishes the Joint Permitting Council.
- HB-4085 – Allows a person to operate an autonomous vehicle with the automated driving system engaged without a grant of driving privileges if certain conditions are met.
- HB-4126 - Requires the Department of Transportation to submit a biennial report to the Legislative Assembly recommending a rate for the per-mile road usage charge that would sustainably raise the revenue necessary to maintain the public highways in this state.
Bills that require ODOT to study the development of uniform standards for speed bump height and markings are placeholder bills (like SB-1544). If the bill moves forward, it will have an amendment that changes the bill to something else within the scope of the bill’s “relating to” clause.
Parts of Transportation Funding Bill Referred to Voters; Governor Calls for Redirecting Existing Funds
The Oregon Legislature passed HB-3991 last fall to increase funding for transportation maintenance and operations. The bill was set to raise transportation taxes and fees and phase in mandatory road usage charges for electric and hybrid electric vehicles (owners of those vehicles would have the option to pay a flat annual fee instead). Money from the increases would have been split between ODOT (50%), counties (30%), and cities (20%) and would have included a temporary increase in the payroll tax for transit.
After the bill passed, a referendum effort successfully gathered enough signatures to refer parts of the bill increasing taxes and fees to Oregon voters. This has paused the tax and fee increase from the bill until Oregon voters weigh in.
Until the election – or until the Legislature takes other action – the transportation funding gap remains. ODOT’s latest estimate for its own budget is a $242 million shortfall. And ODOT must still implement parts of HB-3991 that were not part of the referendum without new resources. TriMet is cutting services to bridge a $300 million gap.
Where does Oregon go from here? That depends on the Legislature. They will meet for their regular session that runs February through early-March and could act on a variety of options. At the January 7, 2026 Oregon Transportation Forum, Governor Kotek called for the Legislature to repeal HB-3991 and pass a new bill redirecting existing money within ODOT’s budget that is dedicated to specific projects by law. Since then, a 1935 Oregon attorney general opinion surfaced saying the Legislature can’t repeal a law once it’s been referred to the ballot. So, voters will weigh in on the referred portions of HB-3991 in 2026.
Governor Kotek also called for the Legislature to work on another long-term transportation funding plan for the 2027 session. For now, the transportation funding focus is on the immediate future.
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.