ODOT funding bill clears the House and now heads to the Senate for a vote – here’s what local leaders are saying
KTVZ
BEND, Ore. (KTVZ) – A funding package for the Oregon Department of Transportation passed the Oregon House of Representatives on Monday and now heads to the State Senate for a vote.
Oregon House Bill 3991, is a comprehensive transportation funding measure, introduced in the 2025 special session, that proposes to increase gasoline taxes, raise vehicle registration and titling fees, and double a payroll tax used for public transit. It also requires electric vehicle owners to pay new annual fees and makes other changes to transportation-related fees and taxes to fund road maintenance and operations.
The package is part of a broader effort to modernize Oregon’s transportation funding system.
Public written testimony leaned heavily against the proposal. Through the Oregon Legislature’s website, more than 1,000 written comments were submitted, with over 940, opposed. Only about 2–3% of written testimony supported the bill.
Despite the pushback, some local leaders voiced support, including Bend Mayor Melanie Kebler.
According to the letter below, Kebler supports the bill, seeing it as an urgent but temporary fix to protect city funding, transit, and road safety.
Deschutes County Commissioner Patti Adair told KTVZ News Sunday evening, she testified virtually earlier in the day to oppose the bill.
She acknowledged the importance of keeping roads like Government Camp and Santiam Pass accessible in the winter, but said she doesn’t believe raising the gas tax and other fees, which would be passed down to Oregonians, is the right move for Oregon. She added that this is the 4th highest taxed state in the nation.
“Government Camp and Santiam Pass must be accessible this winter,” Adair said.
Though members expressed concerns about the financial impact on Oregonians, ultimately the committee voted 7–5 to pass HB 3991.
Among the amendments added to HB 3991, include:
The Act increases and adds taxes related to roads, cars, trucks, and buses, and says how revenue must be used.
The Act would make the per-mile road usage charge mandatory over time.
The Act would let a person pay a yearly fee instead of the per-mile road usage charge.
The Act tells the Division of Audits to do performance audits of ODOT.
Directs the Division of Audits to conduct performance audits of the Department of Transportation (ODOT).
Alters the duties of the Joint Committee on Transportation and the Continuous Improvement Advisory Committee.
Provides that the Governor shall appoint the Director of Transportation.
Increases and adds transportation-related fees and taxes.
Provides uses of revenues.
Imposes a mandatory per-mile road usage charge for electric and hybrid vehicles.
Allows an annual fee in lieu of the mandatory per-mile road usage charge.
Repeals the mandatory toll program.
Provides for diesel fuel to be taxed in the same manner as gasoline.
Revises the formula for weight-mile taxes.
Takes effect on the 91st day following adjournment.
Lawmakers emphasized they will continue to explore ways to reduce the burden on households as the bill advances.
Following the committee’s approval on Sunday, the amended transportation funding package (HB 3991) is scheduled for a vote by the full Oregon House of Representatives on Monday, September 1, 2025.