SALEM, Ore. (Feb. 23, 2026) — The Oregon Senate on Monday advanced a bill to set an earlier date for a statewide transportation funding referendum, intensifying a broader debate over how the state pays for road maintenance, transit services and related infrastructure.
Senate Bill 1599, passed on a 17-13 vote, would place Referendum Petition 2026-302 on the May 19, 2026, ballot instead of waiting for the November general election. Voters will decide whether to repeal a sweeping package of tax and fee increases approved in 2025 to shore up transportation finances. The bill now goes to the Oregon House of Representatives.
Proponents, largely Democrats, describe the move as a way to give lawmakers and residents clarity on transportation funding sooner rather than later.
“Oregon voters have made it clear that they want a voice in how we fund transportation in our state,” said Senate Majority Leader Kayse Jama (D – E Portland, Boring & Damascus). “Senate Bill 1599 brings the date of the election to this spring so the people of Oregon can be heard as quickly as possible.”
Backers argue that knowing the outcome sooner will help the Legislature address long-term budget issues and plan for road and bridge safety, maintenance schedules and jobs tied to the transportation system. “The sooner that we in this governing body can get explicit direction from the public… the sooner that we in the legislature can get to work,” said Sen. Khanh Pham (D – SE & NE Portland).
The referendum stems from House Bill 3991, a 2025 emergency transportation funding package signed by Gov. Tina Kotek in November that levied the largest combination of transportation tax and fee increases in state history, including a six-cent per gallon increase in the gas tax, higher vehicle registration and title fees, and a doubled transit payroll tax. Supporters of the law said it was essential to prevent cuts to core services and avert layoffs at the Oregon Department of Transportation.
But opponents quickly mobilized under the banner No Tax Oregon, collecting well over the required signatures to place a referendum on the ballot — a move that has frozen many of the revenue provisions until voters decide their fate. Organized petitioners argued that the cost increases would exacerbate affordability challenges for households and businesses and that voters, not legislators, should make the final decision.
Critics of moving the vote to May say many residents who signed the petition did so under the assumption that the issue would be decided in the November general election, when turnout is historically higher. They argue that a May election, part of the spring primary cycle, typically draws fewer voters, potentially skewing participation. Some Republican lawmakers suggested that shifting the date after the petition qualified could confuse voters and affect turnout.
Opponents also note that Gov. Kotek has since called for repeal of House Bill 3991 in light of the referendum campaign, framing it as a pragmatic response to public pushback and the risk of service disruptions. At an Oregon Transportation Forum event in January, she urged lawmakers to consider “redirect, repeal, and rebuild” strategies, warning that without action, hundreds of transportation workers could be laid off this spring and essential services could deteriorate.
Supporters of the referendum counter that even with a May election, voters will have ample opportunity to weigh the trade-offs and that an earlier decision will reduce uncertainty that complicates planning for road maintenance, construction and budget agreements in the 2026 legislative session.
The Oregon Constitution gives the Legislature authority to set the date of referendum elections. If Senate Bill 1599 becomes law, Oregon voters will decide the fate of the transportation funding package this spring, potentially reshaping how the state addresses its infrastructure funding challenges.
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