Oregon Voters Reject Proposed Gas Tax Increase Measure
PUBLISHED May 19, 2026, 1:11 AM ET
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PORTLAND, Ore. — Oregon voters on Tuesday rejected Measure 120, overturning parts of a transportation bill passed last fall that had raised the state gas tax by six cents per gallon and increased vehicle registration and title fees. The decision occurred during the May 19 primary after a Republican-led referendum placed the law before voters amid rising pump prices. The vote leaves the Oregon Department of Transportation facing an estimated near-$300 million shortfall and follows Gov. Tina Kotek's March directive to allocate $218 million to stabilize ODOT operations. Republicans framed the referendum around affordability as fuel prices climbed with the war in Iran; Democrats acknowledged the timing reduced the measure's chances and signaled work on alternative funding approaches.
By James Porter | JQJO News
Timeline of Events
- Last fall — Oregon Legislature passes transportation bill raising gas tax and fees.
- Early 2026 — Republican lawmakers organize a referendum to refer the bill (Measure 120) to voters.
- March 2026 — Governor Tina Kotek directs $218 million to stabilize ODOT.
- May 19, 2026 — Primary election: voters decide on Measure 120.
- Post-vote — Measure 120 is rejected, leaving the ODOT funding gap unresolved.
News Intelligence
- The gas tax rejection means you'll keep more money in your pocket at the pump. But, it also leaves a big funding gap for Oregon's transportation department. This could impact road maintenance and other services. Keep an eye on your local roads and report any issues.
- Articles Published:
- 7
- Right Leaning:
- 1
- Left Leaning:
- 0
- Neutral:
- 6
- Distribution:
- Left 0%, Center 86%, Right 14%
Republican organizers and opponents of the tax benefited politically by successfully leading the referendum campaign and framing Measure 120 as ill-timed amid rising pump prices, resulting in voter rejection of the increased taxes and fees.
Democratic lawmakers and the Oregon Department of Transportation suffered both politically and financially after voters rejected the revenue measures intended to close a projected transportation budget shortfall.
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Oregon Voters Reject Proposed Gas Tax Increase Measure
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