Oregon — Governor Tina Kotek on Wednesday delivered a stark warning about the state of Oregon’s transportation system, outlining what she described as a necessary three-step response: “redirect, repeal, and rebuild.”
Speaking at the annual meeting of the Oregon Transportation Forum, Kotek said decisions made in the coming weeks will determine whether the Oregon Department of Transportation can continue providing basic services or faces widespread layoffs and service degradation.
“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,” Kotek said. She warned that without legislative action, “hundreds of people will be laid off this spring,” adding, “Giving up is not an option.”
Kotek urged lawmakers meeting in February to redirect existing transportation dollars toward core operations and maintenance. With a projected $242 million ODOT budget shortfall, she said the state cannot rely on General Fund dollars and must instead reallocate funding across nearly all transportation programs to preserve basic services and limit exposure to severe weather and infrastructure failures.

The governor also renewed her call to repeal House Bill 3991, the major transportation revenue package passed during last year’s September special session and a bill that was led by the Governor. Its revenue provisions are currently frozen after voters successfully referred the law to the November ballot, following certification of signatures by the Secretary of State. Kotek argued that keeping the law on the books forces ODOT to absorb implementation costs without receiving new revenue, extending uncertainty for both the agency and local communities.
That reversal drew sharp criticism from Republicans, who accused the governor of retreating only after voter opposition became politically unavoidable. Representative Ed Diehl, one of the chief petitioners behind the referendum, said Kotek’s decision undermines the will of voters who signed petitions specifically to secure a public vote. He emphasized that repeal avoids direct voter accountability and removes the issue from the ballot entirely.
Kotek said she will lead a bipartisan process aimed at developing a comprehensive transportation funding and investment package for the 2027 legislative session. The effort, she said, would bring together lawmakers, stakeholders, and technical experts to align transportation spending with economic development, workforce needs, and long-term safety goals.
Republican lawmakers said Kotek’s appeal for a new bipartisan process is undermined by past negotiations that were followed by unilateral decisions, eroding trust. GOP leaders reiterated that Oregon’s transportation problem is not a lack of money, but a lack of prioritization and accountability.
While Republicans said they will participate in future discussions, they emphasized that any new transportation legislation must honor voter input and include clear reforms and oversight, rather than asking taxpayers to pay more.

It is almost comical the way our govenor supposedly represents Oregonians. She can’t even manage ODOT let alone the homeless crisis and every other department. Our representatives spend so much energy and money fighting against each other that nothing gets done. She talks about layoffs and roads not being maintained. I know lots of roads that are not maintained and have not been maintained since before she awas even elected. What a disappointment for the People of Oregon. Our leaders??? need to focuse on Oregon isses and stay out of the national spotlight it is not a good look for them. Shows extreme bias and basically immaturity. To much emothion and not enought work.