After spending much of the summer struggling to push through a transportation funding bill, Gov. Tina Kotek wants to send the entire thing to the scrap heap.

The striking pivot comes after a Republican-led campaign successfully waylaid the heart of House Bill 3991: tax increases meant as a stopgap to fund the Oregon Department of Transportation.

As lawmakers prepare to wrestle with a $242 million funding gap at ODOT, Kotek announced Wednesday that she now favors a “redirect, repeal and rebuild” approach.

The “redirect”: Passing a bill to free up money within ODOT’s budget that is currently dedicated to specific projects. That money could instead go toward basic road maintenance.

The “rebuild”: Come back to the Legislature in 2027 with a more comprehensive plan for funding ODOT. Kotek vowed to lead work on that effort this year.

And, potentially the most controversial, the “repeal”: asking Democrats to scrap the entirety of the bill she muscled through in a special session over the summer. That move would render moot a vote, scheduled for November, on whether tax increases in the bill can move forward. But it would also do away with other changes in the bill, like a long-sought shift in how freight haulers are taxed.

“These decisions won’t be easy. There will be tradeoffs and consequences. Hundreds of people will be laid off this spring if we are not successful. Giving up is not an option.”

Kotek’s approach is in line with what unions representing ODOT workers are advocating. Service Employees International Union Local 503, a long-time political ally of Kotek, said this week that redirecting spending away from specific projects and repealing HB 3991 were in its members’ interests.

But the proposal is certain to catch flak from some who supported Kotek’s bill. The Oregon Trucking Associations, the state’s freight industry lobby, has long advocated simplifying the complex system of weight-mile taxes its members are liable for. The organization supported House Bill 3991, and did not take an active role in referring pieces of the bill to voters.

“When this package was put together, it was the only piece that wasn’t controversial,” OTA President Jana Jarvis told OPB this week, saying her organization would oppose the repeal Kotek is now advocating.

Also against the idea: state Rep. Ed Diehl, a Republican from Scio who was a leader of the campaign that delayed tax hikes within the bill by collecting hundreds of thousands of signatures from across the state.

“They’re just trying to escape responsibility in the election,” said Diehl, adding that an unpopular suite of tax hikes — including increases to the state’s gas tax, and vehicle registration and titling fees — could sour voters on Kotek and other Democrats on the ballot. “I want the voters to weigh in.”

But Kotek argued Wednesday it is irresponsible to take on new costs spurred by HB 3991 without the new money provided by tax increases. Those costs include creating a new system for charging drivers of electric vehicles and hybrids for the miles they drive.

“Leaving the law in place would require ODOT to absorb implementation costs without new resources, thus prolonging uncertainty for communities and the transportation agency and further delaying progress toward a durable solution,” Kotek’s office said in a release.

News Source : https://www.opb.org/article/2026/01/07/portland-oregon-tina-kotek-transportation-bill-politics/