SALEM, Ore. — Oregon lawmakers have signed off on a $4.3 billion transportation funding package that will keep state road crews on the job — and raise everyday costs for drivers, businesses, and workers across the Willamette Valley.
The bill, House Bill 3991, passed the Senate late Monday on an 18-11 party-line vote after weeks of stalemate. The approval prevents nearly 500 layoffs at the Oregon Department of Transportation (ODOT) and averts immediate cuts to snow removal, highway cleanup, and basic road repairs that were set to begin this fall.
What Taxpayers Will Notice
The revenue comes directly from Oregonians’ wallets. Beginning Jan. 1, 2026, the state’s gas tax climbs six cents per gallon, from 40 cents to 46. For drivers filling a standard 15-gallon tank, that’s an additional 90 cents each trip to the pump.
Vehicle fees also rise sharply: most passenger registrations will cost $42 more, and vehicle titling jumps by $139. On top of that, Oregon’s payroll tax for public transit doubles from 0.1% to 0.2% of wages through 2028. For someone earning $50,000 a year, that’s about $50 in added tax…