On eve of Oregon Legislature’s short session, budget crisis and transportation funding top lawmakers’ agenda
BEND, Ore. (KTVZ) -- Starting Monday, legislators from across Oregon will gather in Salem for a 35-day "short session" sprint to tackle some of the state’s most pressing issues, from transportation funding to a deepening budget crisis and rising housing costs.
The Oregon Legislature enters the session needing to fill a more than an $800 million budget hole. The gap stems in part from cuts in federal spending following the passage of what’s known as the "Big Beautiful Bill," which reduced funding for a range of state programs, including health care.
"All of that combined to a very challenging budget environment for the state of Oregon. Heading into the short session, we are going to need to balance the budget and to do so responsibly." Speaker of the House and State Representative Julie Fahey said.
“Right now, too many families are struggling,” said House Minority Leader and State Rep. Lucetta Elmer. “Costs keep rising, systems feel broken, and too often state government responds by asking for more money without delivering better results.”
In addition to closing the budget gap, lawmakers will face a renewed debate over transportation funding. A petition signed by more than 200,000 Oregonians, referring the last session's gas tax and vehicle fee hikes to voters, has reignited discussion about how the state funds ODOT.
That conversation is expected to add more pressure to an already packed session.
At a legislative preview fore reporters on Wednesday, livestreamed on KTVZ+, state Senate President Rob Wagner said lawmakers will be moving quickly to address several high-priority items early in the session.
“We know that one of the big items that we're going to be moving quickly on, is moving the election date, so that we can focus on what comes next,” Wagner said.
Senator Bruce Starr said voters are sending a clear message about spending.
"The message from voters could not be clearer: Stop reaching deeper into their pockets and start taking responsibility for how existing dollars are spent," Starr said.
With major fiscal and infrastructure decisions ahead, lawmakers will have little time to spare before the session wraps up by the constitutional deadline of early March.
KTVZ News will continue to bring you updates from Salem as debates and proposals move forward.
News release from Gov. Tina Kotek:
Governor Kotek Outlines Legislative Priorities
Salem, OR — Today, Governor Tina Kotek outlined her priorities for the 2026 legislative session, focusing on policies that can make life more affordable for working families, grow the economy and increase job creation, protect vulnerable Oregonians from federal funding cuts, and defend Oregon communities amid federal uncertainty and aggressive immigration enforcement.
Facing a constrained budget and continued disruption from Washington, D.C., Governor Kotek emphasized steady, responsible governance and targeted investments that deliver tangible results. Governor Kotek will support legislative efforts to respond to federal overreach and has introduced three bills that aim to grow Oregon’s economy, build more affordable housing for seniors, and strengthen the behavioral health workforce.
“I’m focused on putting Oregon’s future first,” Governor Kotek said. “Even in a tough budget year, we must protect core services, expand affordable housing, strengthen our workforce, and grow a competitive economy. And as the Trump administration creates chaos, I will work with lawmakers to protect our communities, our civil liberties, and the people who call Oregon home.”
Governor Kotek’s legislative priorities include:
Creating More Affordable Housing Options (House Bill 4082)
House Bill 4082 speeds up the development of affordable housing for seniors and manufactured home communities by allowing limited urban growth boundary expansions. By focusing on lower cost manufactured housing, the bill will help cities add hundreds of affordable homes, ease pressure on the broader housing market, and support renters and homelessness solutions statewide.
Cutting Red Tape for Behavioral Health Workers (House Bill 4083)
House Bill 4083 removes barriers that keep qualified mental health and addiction professionals from providing care. The bill would streamline credentialing, reduce administrative burdens, and expand supervision pathways to help more providers enter and stay in the workforce - ensuring Oregonians can access care faster. This legislation is a recommendation from the Behavioral Health Talent Council, chaired by First Lady Aimee Kotek Wilson.
Prosperity Roadmap Package (House Bill 4084)
To get started on the Oregon’s Prosperity Roadmap, House Bill 4084 supports job creation and economic growth by fast-tracking permits for major projects, preparing shovel-ready industrial sites, and modernizing business incentives. The goals of the bill are to make it easier for businesses to invest and expand in Oregon, strengthening regional economies and creating good-paying jobs statewide.
News release from Oregon House Republicans:
Oregon House Republicans Outline 2026 Legislative Priorities
SALEM, Ore. — Today, Oregon House Republicans announced their top priorities for the upcoming legislative session, focusing on affordability, public safety and education.
“Oregon families are feeling the impact of rising costs and a state government that keeps asking for more of their money without delivering results. House Republicans are listening to Oregonians and putting forward policies to help ease their financial burden, protect businesses, and grow our economy,” said House Republican Leader Lucetta Elmer (R-McMinnville).
“While Democrats are signaling that their top priority for the short session is combating the federal administration, our focus remains where it belongs: delivering real solutions, protecting
constitutional guardrails, and ensuring public trust for the people of Oregon.”
Affordability
- House Bill 4051: Creates a program for deferred loans to first-time home buyers, allowing them to get their foot in the door without being overburdened by closing costs.
- House Bill 4129: Caps Oregon’s Clean Fuels Program – eliminating an extra 22-cent per gallon tax at the pump.
- House Bill 4109: Repeals Oregon’s first-in the-nation law allowing striking workers to receive
unemployment insurance.
Public Safety
- House Bill 4151: Increases the penalty for swatting, or making a false police report in an attempt to get police to respond, from a misdemeanor to a felony.
- House Bill 4045: Requires communications companies doing business in Oregon to respond to search warrants within 72 hours when the underlying crime involves stalking or domestic violence.
Education
- House Bill 4133: Allows Oregon access to additional tax credits for education and expands Workforce Pell Grants so that students and their families can choose a learning environment that best serves their needs.
