LOC News
HB 2025 Transportation Package – Framework Details Announced, Hearings Scheduled for Next Week
Today, the framework for the state’s next transportation funding package was released in HB 2025. While more details of this package will be revealed next week, it is still built from many of the core elements of a transportation package that the LOC supports.
There have been some changes from the original framework, most notably a reduction in overall gas tax increases from 20 cents to 15 cents per gallon. The distribution formula remains at 50-30-20, and there’s a strong commitment to public safety and finishing key projects from the 2017 transportation package, along with increased accountability and new management standards for the Oregon Department of Transportation (ODOT).
The Legislature’s Joint Committee on Transportation and Reinvestment (JCTR) will schedule three hearings for next week, starting on Tuesday (June 10) and concluding Thursday evening. Each hearing will run from 5-7 p.m. and will have a specific focus or theme. Tuesday’s focus will be on the business community, or the users of the transportation system. Wednesday will cover rail and transit, while Thursday's focus will be on local government interests.
Stay tuned for an LOC Action Alert on Monday, along with suggested areas of focus for testimony.
In order to move forward, the state’s next transportation package will require substantial support from a broad range of stakeholders. Cities will play a unique role alongside their local government partners, the state’s 36 counties. Collectively, local governments benefit directly from the revenue generated by gas taxes and fees that maintain the State Highway Fund, which uses a 50-30-20 distribution formula. Residents in all communities will benefit directly from the increased revenue share, leading to improved road conditions.
The work from the LOC’s Transportation Policy Committee defined the League’s advocacy on this transportation package. These elements include the following:
- A stable, significant investment in state and local government facilities. This funding must maintain the 50/30/20 split among the state, counties, and cities.
- Transportation safety remains a top concern, as traffic fatalities and serious injuries have continued to rise over the last few years. Increasing investments in safety improvements will minimize conflicts.
- Additional transit funding is critical to connecting communities. One of the most significant investments made in HB 2017 was an annual infusion of transit funding to build capacity and create inter-community connections.
- Finish Projects in HB 2017. The scale of these investments was historic and resulted from a significant bipartisan effort, but not all have been completed. These unfinished projects must be completed because they remain critical for all communities.
- Reduce the reliance on fuel taxes to fund state and local transportation systems by transitioning to a road user fee, which will reduce the continued erosion of buying power with the gas tax and stabilize revenue for transportation investments.
- Simplify the weight-mile tax to reduce the complexity and add stability for the trucking industry.
- The Oregon Department of Transportation's accountability to improve project efficiencies, ensuring that Oregonians are maximizing the value of the taxes and fees they pay.
Contact: Jim McCauley, Legislative Director – jmccauley@orcities.org
Last Updated 6/6/25