Oregon — Oregon Governor Tina Kotek is backing away from her signature transportation funding package after a historic grassroots referendum effort delivered a decisive political blow.
The reversal follows the stunning success of the No Tax Oregon referendum, which organizers say collected more than 250,000 signatures statewide, far exceeding the roughly 78,000 required to qualify for the ballot. The final signature haul was reported in late December, marking what organizers described as the fastest and largest volunteer-driven referendum campaign in Oregon history (Right Now Oregon, Dec. 29, 2025).
The transportation package, passed by the Democratic-controlled Legislature earlier this year, would have raised billions through a combination of higher gas taxes, increased vehicle registration and title fees, and expanded payroll taxes to stabilize funding for the Oregon Department of Transportation amid mounting budget shortfalls.
Opposition mobilized almost immediately. In mid-November, No Tax Oregon reported collecting over 43,000 signatures in just three days, aided by public support from Republican gubernatorial candidates and a broad coalition of anti-tax activists (Right Now Oregon, Nov. 18, 2025).
As signature totals surged, the political landscape shifted. According to reporting by KATU, Governor Kotek has now publicly called for repealing the transportation bill, citing both the overwhelming referendum response and an ongoing funding crisis at ODOT (KATU).
Oregon Public Broadcasting reports that Kotek is advocating a “repeal and rebuild” strategy — scrapping the existing law and pursuing a redesigned transportation funding framework in a future legislative session rather than fighting voters at the ballot box (OPB, Jan. 7, 2026).
Under Oregon law, the submission of sufficient referendum signatures automatically suspends the contested law pending verification and, if certified, a statewide vote. As a result, the tax and fee increases included in the transportation package are currently on hold.
Supporters of the referendum argue the outcome reflects deep voter frustration with rising costs of living and what they describe as legislative overreach. “Oregonians sent a clear message,” organizers said in a statement, emphasizing that transportation funding should be reworked without imposing new broad-based taxes.
Transportation advocates and local governments, however, warn that repealing the bill without a replacement could worsen maintenance backlogs and safety issues across the state’s highway system.
Following verification of signatures underway and political pressure mounting, Oregon now appears headed for a fundamental reset of its transportation funding debate. The previous bill was crafted and led by the governor, faced significant opposition from Republicans and ultimately was rebuked by voters, whether the next approach follows a similar path will remain to be seen.
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Hey Democrats! Don’t make us get out the switch again!
I think if our State stopped supporting the Illegal Allin’s and redirected those funds to solve the problem. The KIS concept.
Michael Kelly Msgt retired OANG
Klamath Falls OR 97603