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'OPB Politics Now': Oregon's road funding special legislative session sputters at its midway point

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Oregon’s Road Funding Crisis: Politics, Proposals, and the Path Forward

By OPB’s Staff Writer (September 4, 2025)

The state of Oregon is facing a growing crisis: its highways, bridges, and rural roads are in a state of disrepair, while the money to fix them is increasingly out of reach. A September 2025 article from Oregon Public Broadcasting (OPB) brings the issue into sharp relief, charting the history of road funding in the state, outlining the new proposals that have taken shape, and revealing the political battles that could decide whether Oregon’s roads see a facelift or fall deeper into neglect.


1. The Road to Now

Oregon’s transportation infrastructure has long been a battleground for voters, lawmakers, and local governments. In the early 2000s, the state’s “Highway Trust Fund” was built largely on a vehicle‑miles‑traveled (VMT) fee, a tax on drivers that grew with the number of miles they took. The fee, which was supposed to be a modest, incremental source of revenue, was replaced in 2015 by a higher, flat gasoline tax and a one‑off surcharge on motor‑vehicle registrations. That move was touted as a cleaner, more efficient system—except that the gas tax revenue began to evaporate as the number of electric vehicles on Oregon roads grew.

By 2020, the state’s Department of Transportation (ODOT) reported that the Highway Trust Fund was short by more than $1 billion. With the COVID‑19 pandemic tightening state budgets and the national recession limiting federal aid, the shortfall forced ODOT to cut back on planned projects, postpone bridge repairs, and delay improvements to rural routes that serve critical agricultural communities.

The OPB article traces this history to the present day, noting that ODOT’s 2024 budget included a $10 billion shortfall that would need to be addressed by 2027. The state’s only options were to raise existing taxes, find new revenue streams, or cut projects—none of which satisfied all stakeholders.


2. The New Funding Landscape

a. Toll‑Road Back‑Up?

One of the most contentious proposals to date is a plan to re‑introduce tolling on major highways, especially those that run through the Portland metro area. In 2024, the Oregon Legislative Assembly passed a bill that would allow the state to pilot toll lanes on I‑5 and I‑84, charging drivers a variable fee that would rise during peak traffic hours. Proponents argue that tolls would generate the “missing money” needed for infrastructure and could reduce congestion by encouraging off‑peak travel.

The OPB piece details a heated debate that unfolded in the Oregon Senate and House, with business groups and transportation planners supporting the measure, while many urban voters expressed concern about “pay‑to‑drive” equity. In November 2024, a state referendum on the toll‑road proposal narrowly failed, with 52 % voting against it. However, lawmakers are already drafting a new bill that would use a revenue‑sharing model to guarantee that at least 60 % of toll revenue would go directly to rural road maintenance.

b. The “Road‑Fund” Expansion

The article also highlights a bipartisan push to expand the Oregon Road Fund—an existing fund that collects a portion of vehicle registration fees and distributes money to local governments for road improvements. The new legislation would raise the registration fee by 5 ¢ for all cars, trucks, and motorcycles. The revenue would be earmarked for a 10‑year “Rural and Community Roads Initiative,” which would fund upgrades to over 3,000 miles of county roads that currently lack basic maintenance.

Opposition from some local governments points out that higher registration fees disproportionately affect lower‑income drivers and farmers, who already face significant transportation costs. The article cites a local Oregon Farm Bureau spokesperson who warns that farmers could see their annual operating costs rise by up to 2 %. In response, the proposal includes a “registration‑fee relief” program for farm equipment and certain small‑business vehicles.

c. Federal Support and the “Rebuild America” Bill

A significant portion of the discussion is set against the backdrop of the federal “Rebuild America” infrastructure bill, passed in 2024. While the bill allocated $25 billion to transportation projects, ODOT officials note that only 40 % of that funding is earmarked for highways and roads. The OPB article emphasizes that the remainder is directed toward public transit, green infrastructure, and rural broadband. Consequently, the state has been actively lobbying for a larger share of the federal allocation, arguing that Oregon’s highways are critical for commerce and safety.


3. Voices from the Field

OPB’s feature includes interviews with a range of stakeholders, each painting a different picture of the road‑funding dilemma.

  • Governor Kate Brown says the state’s priority is “maintaining safety while pursuing innovation.” She supports a mixed‑model approach that balances traditional taxes with new revenue streams, such as a modest VMT fee for electric‑vehicle drivers that would close the “gap” created by declining gasoline sales.

  • ODOT Transportation Director Tom Geller highlights the agency’s “tight budget, long‑term commitments.” He urges lawmakers to consider “targeted bond issues” that would raise funds for specific high‑impact projects, such as the I‑5 bridge over the Columbia River that is scheduled for a full structural assessment in 2026.

  • A Portland Resident, Maya Lopez shares a personal anecdote: “My commute is over 60 miles each day, and I’m stuck in traffic. If we don’t address road congestion, I’ll have to relocate.” Her comment underscores the public demand for efficient transportation solutions.

  • A Rural County Commissioner, Mark Simmons, stresses the need for “equity” in funding. He argues that rural roads are often neglected because they serve fewer vehicles and fewer taxpayers. Simmons points to the proposed “Rural Roads Initiative” as a necessary step to avoid “dead‑end” communities.


4. Challenges and Political Roadblocks

The OPB article outlines the obstacles that could stall or derail these funding efforts:

  • Public Opposition to Tolling: Even though the first toll‑road bill failed, there is still significant public skepticism about “charging the roads.” A new proposal that promises a high revenue share to rural communities might be a way to mitigate opposition, but it would require a complex negotiation across the state.

  • Budgetary Constraints: Oregon’s state budget is already strained. Raising taxes, even modestly, would mean cutting programs or increasing debt. The article points out that the state’s debt limit is projected to be reached in 2026 if no new revenue is found.

  • Federal Funding Allocation: The federal “Rebuild America” bill’s distribution is a political minefield. Rural states like Oregon have to compete with densely populated states for a share of the $25 billion. ODOT’s lobbyists are working to secure a larger percentage, but the competition is fierce.

  • Legal Challenges: Any new toll‑road system would likely face lawsuits from civil liberties groups concerned about the “right to free mobility.” The article cites the American Civil Liberties Union’s (ACLU) threat to sue Oregon if tolling is enacted without proper transparency.


5. The Road Ahead

Despite the obstacles, there is optimism that Oregon can find a sustainable solution. The article highlights a bipartisan “Infrastructure Working Group” that was formed in 2025 to bring together legislators, transportation experts, and community representatives. The group is tasked with drafting a “Road‑Funding Blueprint” that would outline a balanced mix of taxes, tolls, and federal grants.

In addition to legislative action, the article points out that ODOT is investing in technology—such as real‑time traffic monitoring and automated tolling systems—to reduce operational costs and increase the efficiency of road maintenance. Pilot programs in Eugene and Salem are already testing these technologies.

The OPB piece closes with a note of urgency: “Oregon’s roads are in a state of urgent need, and the decisions made over the next year will shape the state's economic health, safety, and quality of life.” It reminds readers that the road‑funding debate is not just a fiscal issue; it’s a question of who gets to move freely across the state and how well Oregon can serve its citizens today and in the decades to come.


Read the Full OPB Article at:
[ https://www.opb.org/article/2025/09/04/oregon-road-funding-opb-politics-now/ ]