Oregon — Oregon voters overwhelmingly rejected Measure 120 on Tuesday, defeating a controversial transportation funding proposal after months of political conflict, referendum litigation, and an unprecedented grassroots signature campaign.
With 935,854 votes counted, the measure failed by a margin of more than five-to-one. According to election results, 83.34% of voters, or 779,968 people, voted “No,” while 16.66%, or 155,886 voters, supported the proposal.
Measure 120 sought to increase fuel taxes, vehicle registration and title fees, and payroll taxes for public transportation services as part of a broader transportation funding package originally passed during Oregon’s 2025 special legislative session.
The vote marks the culmination of one of the most politically contentious referendum battles in recent Oregon history.
The transportation package, championed by Governor Tina Kotek and passed by the Democratic-controlled Legislature, was designed to raise billions of dollars to address mounting funding shortfalls at the Oregon Department of Transportation and support statewide infrastructure projects.
Opposition emerged almost immediately following passage of the legislation.
A referendum campaign led by No Tax Oregon ultimately gathered more than 250,000 signatures to place the measure before voters, far surpassing the approximately 78,000 signatures required and what organizers described as the fastest and largest volunteer-driven referendum effort in Oregon history.
As the referendum campaign gained momentum, Kotek publicly backed away from the legislation. In January, she called for a “repeal and rebuild” approach to transportation funding after the signature drive’s success and growing political pressure surrounding the proposal.
The referendum battle then shifted into the courts and Legislature.
In February, Democratic legislative leaders advanced Senate Bill 1599 to move the transportation referendum from the November 2026 general election to the May 2026 primary ballot. Senate President Rob Wagner openly acknowledged the political considerations behind the move, telling reporters, “Is it political? For sure.”
Republicans and referendum supporters argued the earlier election date was designed to reduce turnout and improve the measure’s chances of survival. A lawsuit filed by referendum supporters challenged the accelerated timeline, but in March Marion County Senior Judge David Leith declined to block the May election, allowing the vote to proceed.
Despite those efforts, voters rejected the measure by a massive margin across the state.
Supporters of the transportation package had argued the tax increases were necessary to prevent worsening highway maintenance backlogs, congestion, and transit funding shortages. Opponents countered that the proposal would increase costs on Oregon households already struggling with inflation and rising living expenses.
The result leaves Oregon lawmakers facing renewed questions over how to fund transportation infrastructure and ODOT operations moving forward.
The defeat also represents a significant political setback for Oregon Democratic leadership after using a substantial amount of political capital in a months-long effort to preserve the legislation.
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