It was a turbulent year in Oregon politics.

Portland drudged through its first year under a new government and mayor.

President Donald Trump’s return to the White House brought major changes to the federal government, an immigration crackdown and widespread protests.

Democrats held majority power in the state but struggled to make headway on some of Oregon’s top issues: education, housing and transportation.

There are no signs that things will slow down in 2026. Here are five political stories to follow this year.

Oregon governor’s race

Oregonians will pick their next governor in 2026.

Gov. Tina Kotek is running for another term. The former House speaker’s bid comes on the heels of a high-profile court fight over the Trump administration’s attempts to deploy the National Guard to Portland.

At the same time, the state has reported high housing costs, dismal school rankings and rising unemployment under her leadership. Kotek is pitching herself as the right candidate to stand up to Trump, and contends Oregon is on the cusp of progress if they continue following her lead.

Kotek could face a rematch with Republican state Sen. Christine Drazan, who is also running. The former House Republican leader lost the 2022 election by less than 4%. She could face a crowded Republican primary in May.

Marion County Commissioner Danielle Bethell is also vying for the GOP nomination. Former Portland Trail Blazer Chris Dudley, who ran for governor but lost in 2010, is weighing a potential bid.

They’ll face headwinds in a midterm election that seldom favors the party that holds the White House. Oregon hasn’t elected a Republican governor since the 1980s.

Transportation bill

Oregon lawmakers tried for months to pass a bill to fund the state’s roads and prevent layoffs at state and local transportation agencies. Democrats eventually reached a deal, capping off a legislative process that featured extensive political dysfunction.

But the issue isn’t going away in 2026.

Kotek signed the bill in November. Since then, a Republican-led effort to refer the bill to voters has submitted enough signatures to qualify for the November ballot.

The effort brought much of the bill to a halt. Agencies like the Oregon Department of Transportation once again face possible layoffs if lawmakers don’t act, and Kotek is warning of steep service cuts. Lawmakers appear keen on figuring out how to address the funding hole during the 2026 short legislative session, which begins in February.

Portland’s new government

Portland’s city government went through a massive overhaul in 2025. With new council responsibilities, expanded district representation, more meetings, a new administrative branch, and different mayoral powers, there was a lot to figure out.

Twelve months in, and some uncertainty remains. But much of the dust of those big changes has settled. Now, city leaders have a chance to truly explore the limits of the new governance structure.

Councilors have dropped hints: Some are calling for oversight hearings to hold bureaus to account for unspent dollars, others want to slash the number of council committee meetings to increase efficiency. Some have suggested rolling back parts of Mayor Keith Wilson’s homelessness plan, a policy the new mayor was able to advance largely unquestioned in 2025. At the same time, six of the new councilors are already up for reelection in November.

How Portland City Hall functions, especially under the new leadership of incoming city administrator Raymond Lee, will be the political experiment to keep an eye on in the new year.

Oregon’s budget quandary

Oregon lawmakers passed a two-year state budget in June, only to see some of its underpinnings crumble weeks later.

When President Trump signed his massive tax-cut-and-spending bill July 4, Oregon policymakers knew a spending reckoning was coming. Some of it will play out in the year ahead.

Because of how the federal tax cuts interact with Oregon’s tax code, the bill is expected to reduce income flowing into the state general fund this budget cycle by $890 million — blowing a hole in the state budget.

Lawmakers will come into the month-long legislative session in February looking to paper over that hole.

They could opt to disconnect from the federal tax code in order to reclaim money that would otherwise be lost because of the federal changes. That would effectively hike taxes on Oregonians at a time the public has indicated it is in no mood for taxes. Or they could lay off state employees and slash services.

Budget writers have already directed state agencies to submit ideas for slashing their budget by up to 5%.

Midterm election

Much of 2026 will build up to the November general election.

The balance of power in Congress will be at stake as President Trump’s term hits the halfway mark. Most of Oregon’s congressional delegation will be up for reelection, including U.S. Sen. Jeff Merkley and all six members of the U.S. House of Representatives.

The Democratic Congressional Campaign Committee has listed Rep. Janelle Bynum as a potentially vulnerable candidate. In the 2024 general election, she unseated former Republican U.S. Rep. Lori Chavez-DeRemer, who went on to become U.S. Labor Secretary.

In addition to the gubernatorial race, half of Oregon’s state senators and all of its state representatives will be up for reelection. Democrats are in the supermajority in both chambers, with 37-23 in the state house and 18-12 in the state senate.

Republicans, always itching to cut into the Democratic margin, once again have Oregon’s richest person as an ally. Nike co-founder Phil Knight has donated $3 million to a committee that supports GOP legislative candidates.

News Source : https://www.opb.org/article/2026/01/05/oregon-politics-2026-five-things-to-watch/