Oregon — In a move that has stirred controversy across Oregon’s political spectrum, Governor Tina Kotek signed her administration’s $4.3 billion transportation funding package on Friday—several days after the bill’s passage and without a public announcement until the following week.
According to Oregon Roundup, “Gov Tina Kotek signed her signature $4.3 billion transportation tax and fee hike bill Friday, according to a letter dated Friday,” but “the public wasn’t notified until Monday.” The outlet noted that the delay “shortened the amount of time available for voters to file a referendum” against the measure, which must be done within 90 days of the signing.
Kotek’s office described the new law—House Bill 3991—as an urgent response to prevent deep cuts in transportation services. “This bill will help us keep state highways and local roads safe and open to traffic while preserving transit service and halting the pending layoffs of essential transportation staff,” the governor said in a statement published by KVAL News.
The legislation raises Oregon’s gas tax by six cents, increases title, registration, and other vehicle fees, and adds “a 0.1% payroll tax for the next two years to support public transportation services,” KVAL News reported.
Critics argue that the delay in signing was politically motivated. As OPB previously noted, “the delay in signing the bill limits opponents’ ability to pursue a referendum.” Republican leaders, including former House Minority Leader Christine Drazan, accused the governor of attempting to “run out the clock” on public opposition, saying that “the secrecy surrounding the signing shows a lack of respect for transparency.”
Two Senate Democrats had earlier urged Kotek to act swiftly, warning that continued hesitation could be seen as a political tactic. “Many Oregonians, across party lines, believe that delaying action on this legislation may limit the window for opponents to pursue the referral process,” KVAL News reported.
Supporters of the bill emphasize its goal of maintaining Oregon’s transportation network amid funding shortfalls. Opponents counter that the combination of higher gas, vehicle, and payroll taxes will burden working families and small businesses already strained by inflation.
The new taxes take effect January 1, 2026. A citizen referendum to overturn the law must be filed with sufficient signatures within 90 days of Kotek’s signing.
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