ODOT funding bill with gas tax, fee hikes passes Oregon Senate on party-line vote; officials react
Claire Elmer
(Update: adding video, adding details of bill, commentary from lawmakers)
SALEM, Ore. (KTVZ) — Monday’s Oregon Senate meeting in Salem began with passionate debate from both sides of the aisle on Governor Kotek’s transportation bill (HB 3991 A).
The meeting concluded with the bill aimed at addressing an ODOT funding shortfall passing in an 18 to 11 vote — with all Senate Republicans voted no.
HB 3991 A, much smaller than a bill that died in the closing days of the regular session, has sparked heated arguments between not only lawmakers but Oregonians. The bill is designed to close a massive gap in Oregon’s road funding. But, it boosts costs for most Oregon residents.
The gas tax increases 6 cents, from 40 cents to 46 cents per gallon. Registration fees will increase from $43 to $85 for passenger vehicles, and from $115 to $145 for electric vehicles. Title fees will also increase — from $77 to $216.
In addition, electric and hybrid vehicle drivers will be required to enroll in a road usage program — OReGO — and opt for either a 2.3 cent per mile charge, or annual fee of $340.
Here in Central Oregon, the fate of ODOT’s Sisters maintenance station hung in the balance prior to the bill’s approval.
During the debate leading up to the vote, state Senator Anthony Broadman (D – Bend), noted Central Oregon’s economy is largely dependent on the roads and mountain passes which connect us to the rest of the state.
“In Central Oregon, we know how critical public investment into infrastructure, roads and bridges is to our economy,” Broadman said. “It’s impossible to get our goods to market when the one road that gets you to and from your destination isn’t plowed, or when workers can’t get to their jobs.”
While supporters say the cost falling on Oregon taxpayers is not an ideal solution, the price of not fixing roads is far higher. Opponents argued the Legislature should look for other solutions before asking Oregonians to pay more, especially when many are struggling to make ends meet.
Senate Republican Leader Bruce Starr (R – Dundee), released a statement following the vote, saying democrats forced through the tax hike with no regard for struggling families and small businesses.
The Senate President and Speaker of The House jointly stated their opinions following the vote, saying the bill will not only preserve the safety of roads but protects the jobs of 500 essential ODOT workers.
Though Oregon Republican officials continue to voice their strong opposition, democratic lawmakers say the bill provides only the bare minimum for funding.
For Oregonians, fee increases are expected to begin January 1st, 2026. Road usage programs will start in 2027 for electric vehicle owners and and 2028 for hybrid owners.
Official statements can be read in their entirety below:
Transportation Safety Crisis Averted_ Senate Passes Stop-Gap Legislation to Preserve Services, Protect JobsDownload
2025-9-29 Senate Democrats Force Through $4.3B Tax Hike, Ignoring Oregon’s Affordability CrisisDownload