Governor Kotek urges lawmakers to repeal challenged gas tax, vehicle fees; Republican lawmakers react
(Update: Adding Republican lawmaker reaction)
PORTLAND, Ore. (KTVZ) -- Days after a citizen initiative qualified for the November ballot, Governor Tina Kotek called on lawmakers Wednesday to repeal the challenged gas tax and vehicle fee hikes, and to get to work on new short- and long-term ways to fill the Oregon Department of Transportation's funding shortfall.
Here's the news release KTVZ News received from the governor's office on her address to a Portland forum about what she wants to see happen next. We also have received reactions from Republican lawmakers, which follow:
Governor Kotek Outlines Next Steps for Oregon’s Transportation System
Stabilize core services, start discussion on longer-term solutions
Portland, OR — Today, Governor Tina Kotek addressed the Oregon Transportation Forum at its annual meeting, outlining next steps for Oregon’s transportation system and urging immediate, sequential actions to stabilize core services provided by the Oregon Department of Transportation (ODOT) and plan for future needed investments. She characterized the necessary actions as “redirect, repeal, and rebuild.”
View the Governor’s full remarks here.
“The decisions we make in the coming weeks will determine whether Oregon’s transportation system continues to decline or whether we can restore certainty in needed essential services that Oregonians rely on,” Governor Kotek said. “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.”
The Governor urged lawmakers to redirect existing transportation funding to core operations and maintenance during the February session. Emergency action is needed to prevent layoffs being planned for the spring, thereby preserving basic services and reducing vulnerability to severe weather and infrastructure failures. Nearly all transportation programs must be considered for reallocation because the overall budget deficit facing the state will prohibit general fund dollars being directed to solve the projected $242 million ODOT budget gap.
The Governor also called for the repeal of House Bill 3991 that was passed in the September special session. The law’s revenue provisions are currently frozen following a referral to the November ballot with the recent certification by the Secretary of State of signatures collected after the passage of the bill last year. 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.
Finally, the Governor committed to leading a bipartisan process to develop a comprehensive transportation funding and investment package for the 2027 legislative session, bringing together stakeholders, elected leaders, and technical experts to align multimodal transportation investment with economic development, workforce needs, and long-term safety goals.
From Oregon House and Senate Republicans:
Governor Kotek Admits Failure, Begs Legislature to Repeal Her Signature Transportation Tax Package
SALEM, Ore. – Governor Tina Kotek today asked the legislature to repeal House Bill 3991, her signature transportation tax package passed during the 2025 special session, effectively admitting what Oregon Republicans and hundreds of thousands of taxpayers have said from the start: the bill was rushed, deeply flawed, and broadly opposed.
HB 3991 is currently frozen following a successful citizen referendum that qualified for the November 2026 ballot. Rather than allowing voters to have their say, the Governor is now urging lawmakers to fully repeal the bill, a move Republicans say is driven by political necessity, not good governance.
“Governor Kotek is not repealing this bill because she suddenly discovered it was bad policy,” said Senate Republican Leader Bruce Starr (R-Dundee). “She is doing it because Oregonians stood up, made their voices heard, and forced her to make a political decision to save face.”
Representative Ed Diehl (R-Stayton), one of the chief petitioners on the successful referendum, said the Governor’s decision undermines the voices of voters who demanded accountability.
“Hundreds of thousands of Oregonians signed petitions because they opposed this tax hike and wanted a vote,” Diehl said. “Repealing the entire bill instead of only the provisions referred to voters is about political leverage. Keeping this deeply unpopular tax package off the same ballot as the Governor is no coincidence.”
House Republican Leader Lucetta Elmer (R-McMinnville) said a full repeal goes far beyond what voters referred and unnecessarily wipes out bipartisan improvements that were never in dispute.
“A full repeal doesn’t just undo the tax increases Oregonians objected to. It also repeals provisions the referendum didn’t touch,” Elmer said. “That includes removing tolling language from the 2017 transportation package, fixing long-standing weight-mile parity issues for trucking, and adding accountability measures Republicans fought for. Throwing out those reforms along with the tax hike is not about good policy. It is about political leverage and keeping Democrats in control of the next negotiation.”
Lawmakers question the Governor’s calls for a “bipartisan process.”
“You can talk about bipartisanship all you want, but actions matter. Governor Kotek’s track record is one of acting in bad faith with Republicans and going back on her word,” Diehl added. “Simply having a Republican in the room doesn’t make a bill bipartisan if it has no impact on the final outcome. The proof will be in the pudding. We will be watching the Governor’s actions very closely.”
Senate and House Republicans are committed to engage in upcoming discussions with the same position they have held throughout 2025: there is enough money in the system, and it must be better prioritized before taxpayers are asked to pay more.
Senator Drazan Responds to Governor Kotek’s Call to Repeal Transportation Tax Package
SALEM, Ore. – Senator Christine Drazan (R-Canby) issued the following statement in response to Governor Tina Kotek’s call for the legislature to repeal House Bill 3991, her signature transportation tax package:
“Imitation is the sincerest form of flattery, and I am flattered, but Tina has proven that she can’t be trusted and that the only thing she cares about is raising more taxes,” Drazan said. “If Tina is afraid of Oregonians voting on her gas tax this November, she’s not going to like what they have to say about her leadership. What a flop.”
