LOC News
Transportation Funding Package Faces Uncertainty
The 2025 Special Session transportation package raised revenue to address budget shortfalls at the Oregon Department of Transportation (ODOT) and to support cities and counties struggling to keep up with the rising cost of road maintenance. The package was controversial in the Legislature and was successfully referred to voters on the November 2026 ballot, pausing revenue increases until after the election.
This week, Governor Tina Kotek called for the Legislature to repeal the package and redirect funds from other programs to stabilize ODOT. The governor plans to rebuild a transportation package with broader stakeholder engagement ahead of the 2027 session.
The LOC was a strong supporter of the transportation package after members identified transportation as a top priority in a 2025 survey and subsequent discussion and ratification by the LOC Board.
The LOC will continue to work in partnership with legislators on transportation and will fight to maintain the full 20% State Highway Fund allocation.
Nicole Stingh, Legislative Director – nstingh@orcities.org
Last Updated 1/9/26