Oregon Cut $42 Million From Rail, Airport and Port Grants to Prevent 470 ODOT Layoffs
The ‘Connect Oregon’ program has been curtailed after forfeiting $42 million to help soften the impact of the Department of Transportation’s 2025-27 funding gap.
Curtailment Impacts Two Rail Facility Projects in Willamette Valley and Nyssa
This has impacted progress at two rail facilities – the Mid-Willamette Valley Intermodal Center (MVIC) in Millersburg and the Treasure Valley Reload Center (TVRC) in Nyssa.
Connect Oregon funds aviation, rail, and marine projects with competitive grants and matching funds for federal grant programs once there is at least $50 million available in the account.
With $75 million available to Connect Oregon, applications for projects were advertised last December. However, in March 2026, lawmakers redirected $42 million from the Oregon Connect program to address the ODOT funding gap.
The Intervention Prevented the Loss of Hundreds of Jobs, Service Reductions, and Traveler Safety
The intervention prevented 470 layoffs and service reductions that would have impacted safety for all travelers in Oregon.
This has reduced available funding to about $30 million, while 35 current Connect Oregon applicants are seeking $78,804,021.
After review and ranking, 12 projects have been earmarked and the Final Review Committee will present its recommendations in December.
Connect Oregon Has Awarded $902 Million in Alternative Modes of Transport to Highways
Connect Oregon was established in 2005 to invest in non-highway alternative modes of transport. Since then, the program has funded 259 projects amounting to $902 million. The Mid-Willamette Valley Intermodal Center in Millersburg was completed in 2022.
Operations at the railroad facility involve the delivery of materials to support the production of roofing shingles. Overseers, Linn County, anticipates additional uses, including bio-diesel.
Recently, the facility at the Treasure Valley Reload Center in Nyssa signed a new lease and operational agreement with Wyoming Colorado Railroad Inc. Infrastructure is under construction and 2027 has been set as the goal date for the start of operations.