(This story has been updated with new information.)
The Joint Committee on Transportation Reinvestment amended a multi-billion-dollar transportation bill on June 20 and voted along party lines, 7 to 5, during a contentious meeting to send the measure to the full House, eight days before the 2025 Legislature must adjourn.
An updated revenue analysis for
House Bill 2025
estimates it will raise $14.5 billion over the next 10 years through
new and increased taxes and fees
. Oregon’s current 40-cent-per-gallon gas tax would climb to 50 cents starting January 1, 2026, and then to 55 cents per gallon beginning January 1, 2028. The gas tax would be tied to inflation after 2029.
HB 2025, as amended by the committee, also would increase the vehicle privilege tax that car dealers pay from 0.5% to 1%.
Half of the vehicle privilege tax would be directed to the Railroad Fund, which funds programs or projects to support public transportation by rail. The other half would continue to fund zero-emission vehicle rebates and the Connect Oregon Fund, which funds grants for aviation, rail and marine projects.
The committee, which had twice been canceled during the week, started nearly 90 minutes late as lawmakers waited for additional documents from the Legislative Fiscal Office.
Just after the meeting was scheduled to begin, Senate President Rob Wagner, D-Lake Oswego, bounced a Democrat from the committee who had pledged to vote against the bill. And at one point, co-chair Sen. Chris Gorsek, D-Gresham, yelled at Rep. Shelly Boshart-Davis. R-Albany, after she referred to the bill as “grossly irresponsible.”
“You are impugning all of us that have worked on that bill, so stop with that,”
Gorsek said, interrupting her.
Rep. Susan McLain, D-Forest Grove, another co-chair, stopped the exchange. Boshart-Davis later said she would file a formal complaint against Gorsek, saying it was “wholly inappropriate by a member of this body and by somebody in a position of power.”
Other changes the bill would make to fund Oregon’s transportation system include:
- Implement a new road usage charge for electric and fuel-efficient vehicles, as well as delivery fleets with 10 or more vehicles. The charge would be the equivalent of a per-mile rate of 5% of the gas tax, or an annual flat fee of $340. Delivery vehicles would pay a rate of 10% of the gas tax. Drivers of such vehicles would be exempt from paying increased registration fees and would
- Simplify the weight-mile tax tables for heavy trucks.
- Increase the employee payroll tax from 0.1% to 0.18% on Jan. 1, 2026; to 0.25% in 2028, and 0.3% by 2030.
- Create a new tax on the transfer of a new or used vehicle sold for more than $26,000. The tax would be 2% of the sales price for new vehicles or 1% for used cars.
ODOT has stated it would need to eliminate approximately 1,000 jobs, nearly 20% of its maintenance stations and reduce services without additional funding.
“This package strikes a balance after a years-long process, including a statewide tour and public hearings that brought real concerns — and real solutions — to the table,” said McLain in a statement. “The result is a strong bill that supports rural and urban Oregon, honors past commitments, and begins to fix the way we fund our roads and bridges in a changing world.”
Sen. Khanh Phạm, D-Portland, said Oregon has been disinvesting in its roads for decades. That disinvestment is visible in the road system daily with potholes on streets, weight-limited bridges, and “exploding” traffic fatalities. She said she recognized the bill was a “major investment” and that it was her responsibility and the responsibility of legislators to pass the bill.
“For that reason, I am unapologetic about the need for investing in our roads, for the health of our communities and the health of our economies,” Phạm said.
Gorsek also celebrated the vote, saying the bill’s investments mean “potholes can be fixed, roads can be plowed, bridges can be stabilized, and drivers and pedestrians can get around more safely.”
Senate President removes Democrat from committee, appoints himself
Minutes after the committee was scheduled to begin, Wagner’s office sent a memo saying he had removed Sen. Mark Meek, D-Gladstone, from the committee and had appointed himself to fill the vacancy.
“Effective immediately, pursuant to Senate Rule 8.05, I am making the following committee appointments for the 2025 Session,” reads the June 20 memo sent at 2:42 p.m. The committee had been scheduled to begin at 2:30 p.m.
Meek
told the committee on June 17
that he would vote no on advancing the major transportation bill out of committee because he was frustrated that he and other committee members had not had time to read and research amendments to the multibillion-dollar transportation bill.
“I don’t see how anybody can expect us to vote on this tomorrow or the day after based on everything that was presented and the time we have to digest this and even to amend it or correct it and make sure it is accomplishing what we are looking at,” Meek said on June 17.
The committee discussed several proposed changes to
House Bill 2025
since its release on June 9. Rep. Paul Evans, D-Monmouth, also indicated he
would vote no
on moving any package forward, but he declared his support on June 20.
Meek said he was removed so the transportation bill could move out of committee
Republicans have panned the transportation package since Democrats first unveiled a
framework for the bill
in April. They suggested
making various cuts
to the Oregon Department of Transportation. Amendments from House Republican Leader Rep. Christine Drazan, R-Canby, and Rep. Kevin Mannix, R-Salem, were not adopted.
Two former Republican lawmakers have raised $193,400 as of June 19 for
an effort to refer the bill to voters
.
Meek remained on the dais throughout the delayed start of the committee and through the work session.
“It looks like the president isn’t willing to reconsider policy options, instead he’s going to remove me from the committee so that they can vote it through,” Meek said in a text to the Statesman Journal.
He did not immediately respond to additional questions. During the meeting, he said he found out on his way to the committee that he was being removed.
“I was removed from this committee because of my opposition to this bill and my opposition to the process,” Meek said.
He said HB 2025 was “fundamentally flawed” and unaffordable and he would be a no vote on the Senate floor in its current form.
Wagner’s office did not immediately respond. During the committee meeting, Wagner stated that the committee had done “phenomenal work” despite “legitimate disagreements” over policy.
Oregon Republicans decried the announcement on social media.
Republicans condemn tax increases in HB 2025 that are expected to raise $14.5 billion over 10 years
Republicans also condemned the increased taxes and fees after updated revenue figures were released.
“By taxing and raising costs on literally everything, Salem Democrats have extended their disdain for businesses to everyday Oregonians and their families,” Boshart Davis, who serves as vice chair of the joint committee, said in a June 19 statement.
Boshart Davis repeatedly stated during the work session that she believes the public did not have enough time to weigh in on the updated estimates.
“This bill is so out of touch and exactly what you get when you scheme in the basement of the Capitol instead of listening to real Oregonians who tell us every day that the cost of living is their biggest challenge,” she said.
Sen. Bruce Starr, R-Dundee, said he had been “kind of excited” about the opportunity to work collaboratively on the bill but that the negotiation process broke down.
“Here we are today,” Starr said. “The size of this tax increase could easily, and I believe will, have a negative impact on our economy.”
Dianne Lugo cov
ers the Oregon Legislature and equity issues. Reach her at
[email protected]
or on X
@DianneLugo
This article originally appeared on Salem Statesman Journal:
Oregon Democrats advance transportation bill during contentious meeting
