Oregon Braces for Major ODOT Layoffs After Governor and Republicans Battle Over Failed Transportation Bill
While lawmakers engage in political maneuvering, the Oregon Department of Transportation (ODOT) remains in limbo, and badly needed funding remains elusive.
House Bill 3991 would have raised the $242 million sorely needed for ODOT to continue maintaining roads and bridges.
However, the bill was frozen by Republican intervention, followed by a public petition that opposed the bill, which included increasing DMV fees, and a 6c hike in the price of gas.
Source: Oregon Legislature committee summary for HB3991 / distribution of increased fuel tax, registration fee, and title fee revenues
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Addressing the annual meeting of the Oregon Transportation Forum on Wednesday, Governor Tina Kotek appealed to lawmakers to address ODOT’s projected $242 million shortfall. She asked for the repeal of the transportation bill, saying that if left in place, ODOT would have to absorb implementation costs without backup resources.
The following day, the governor’s office announced a finding by the Legislature that repealing HB3991 would be unconstitutional. Instead, the proposals contained in the bill must be left for a decision by the residents of the state.
Republicans Accuse the Governor of Doing an About-Face
Republican lawmakers accuse Kotek of doing an about-face. They say her request to repeal the bill is a move “driven by political necessity and not good governance.”
The lawmakers say that by requesting that HB3991 be repealed, the governor has effectively “admitted what Oregon Republicans and hundreds of thousands of taxpayers have said from the start: the bill was rushed, deeply flawed, and broadly opposed.”
Senate Republican Leader Bruce Starr (R-Dundee) says the reason the governor requested the repeal was not that the bill was bad policy, but rather because of the opposition she faces. Starr says Oregonians stood their ground, made their voices heard, and forced the governor to make a political decision to save face.
ODOT Estimates 1,039 Posts Will Be Eliminated in a Worst-Case Scenario
On Thursday afternoon, ODOT reported to an Oregon Transportation Commission hearing that hundreds of jobs will be eliminated unless the agency’s $242 million shortfall is addressed.
Source: Oregon Department of Transportation / 2026 Transportation Funding Update and Potential Workforce Reductions (updated Jan 14 2026)
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The commission was told that the agency has already absorbed $150 million during the current budget cycle.
In a worst-case scenario, ODOT estimates that 1,039 posts will be lost, which amounts to 22% of its authorized workforce.
Currently, 471 of those positions are filled, while the balance of 568 posts remain vacant. Most of the vacant positions are in the maintenance and project delivery departments, followed by the DMV and other administrative divisions.
The agency warned the commission that staff cutbacks will immediately impact the condition of roads and motorists’ safety.
ODOT projects the loss of 342 maintenance department jobs that are currently filled, the closing or downsizing of maintenance stations, and significant reductions in winter road services.
Other repercussions include increased incident response times,scaling back on pavement repairs, and eliminating striping on low-volume roads.
ODOT laid out immediate service impacts if the shortfall forces staffing cuts:
| Potential impact | What it means for drivers |
|---|---|
| Winter road services reduced | Less coverage and slower response during storms |
| Maintenance stations scaled back | Fewer crews available across regions |
| Incident response slower | Longer waits for crashes, hazards, closures |
| Pavement repairs reduced | More potholes and deferred fixes |
| Striping reduced on low volume roads | Visibility and safety concerns, especially at night |
| Rest areas closed | Fewer safe stops for fatigue and emergencies |
| Equipment replacement paused | Older plows and trucks stay in service longer |
Furthermore, ODOT will have to close eight rest areas and not replace any of its aging maintenance equipment.
The commission heard that ODOT could be forced to operate more than one-third of its maintenance stations with five or fewer staff, and impose day-shift-only operations for many crews.
Meanwhile, Oregon Democrats have announced the introduction of a new bill to bring forward the public referendum vote on the transportation tax increases from November to May during the primary election cycle.
The contentious ODOT topic is expected to be raised during the short session of the Legislature starting on Monday, February 2.