SALEM, Ore. (Nov 11, 2025) — Gov. Tina Kotek on Monday signed into law House Bill 3991, an emergency transportation package designed to preserve critical maintenance and operations for Oregon’s roads, bridges and transit agencies.
“This bill will help us keep state highways and local roads safe and open to traffic while preserving transit service and halting the pending layoffs of essential transportation staff,” Kotek said. “I am grateful to the legislature for stepping up to keep our state moving, alongside a broad coalition of cities, counties, workers, truckers, businesses, and the AAA.”
The measure comes amid a sharp funding shortfall across the state’s transportation infrastructure. According to the Oregon Department of Transportation, revenue from the state’s primary fuel tax has plateaued and is projected to decline, while maintenance costs continue to rise.
Key tax and fee increases
The new law includes the following principal revenue changes:
• The state gasoline tax will increase from $0.40 to $0.46 per gallon, effective December 31, 2025
• The current employee payroll tax dedicated to public transit (the statewide transit payroll tax) will temporarily double from 0.1% to 0.2% of wages, effective January 1, 2026, through January 1, 2028.
• Vehicle registration fees for passenger vehicles will rise from $43 to $85, effective for renewals on or after December 31, 2025.
Beginning Dec. 31 2025, Oregon vehicle title fees will rise sharply under the newly enacted transportation funding law. The Oregon Department of Transportation outlined the following changes:
Passenger vehicles and trucks (26,000 lbs GVWR or less)
Current (before Dec. 31, 2025)
• 0–19 MPG: $101
• 20–39 MPG: $106
• 40 MPG or higher: $116
• All-electric: $192
Starting Dec. 31, 2025
• 0–19 MPG: $240
• 20–39 MPG: $245
• 40 MPG or higher: $255
• All-electric: $331
Other title fees
• Light trailers, travel trailers, motorcycles, mopeds, motor homes, buses, campers, park model RVs, and ATVs currently pay $101; starting Dec. 31 2025, that fee rises to $240.
• Late title transfers: $25 for applications filed 31–60 days after sale; $50 if filed after 60 days. A late fee applies if the title is requested more than 30 days after the sale of an Oregon-titled vehicle.
• For electric-vehicle owners, a mandatory per-mile road usage charge (RUC) program will be phased in: the per-mile rate is set at 2.3 cents per mile, or alternatively an annual flat fee of $340.
Opponents’ concerns
Critics of HB 3991 argue the bill carries the burden of the largest transportation tax and fee increase in Oregon’s history. One social-media post from the Senate Republican caucus called the package “the single largest transportation tax-hike in Oregon history ($5.8 B).”
Specifically, the legislation is estimated to raise roughly $4.3 billion over the next decade via the combination of a 6-cent increase in the gas tax (from 40 ¢ to 46 ¢ per gallon), nearly doubling vehicle registration fees, a large increase in title fees, and a payroll tax for transit agencies that doubles from 0.1 % to 0.2 % of wages.
Republican Senate Leader Bruce Starr posted his caucus plans to gather signatures to refer the measure to voters in 2026, arguing the tax increases are too steep and that the funding structure lacks long-term vision.
Supporters’ stance
Supporters say the bill was needed to avert deep cuts to transportation services and staff. In committee hearings, transit agencies warned that without new revenue they would face dramatic service reductions and layoffs.
Senate President Rob Wagner said the bill “averts an immediate transportation safety crisis and does our part to keep Oregonians safe on the roads.”
What the law covers
With the package now law, funds will be directed to road and bridge maintenance, support for local transit agencies, and efforts to prevent layoffs of transportation staff across the state. According to legislative summaries, the package also expands the use of the road-usage charge program for electric vehicles and introduces more frequent audits of ODOT to increase transparency.
Looking ahead
While immediate service disruptions are likely avoided, many observers say this bill is only a stop-gap. Infrastructure costs are rising rapidly—highway construction costs in Oregon reportedly are more than 60 % higher than four years ago—and the state faces a longer‐term funding gap.
As a result, even some supporters describe HB 3991 as a “Band-Aid” rather than a full cure to the transportation funding crisis.
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