POLITICS

Oregon Voters Reject Proposed Gas Tax Increase Measure

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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.

Prepared by Lauren Mitchell and reviewed by editorial team.

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.

Why This Matters to You

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.

The Bottom Line

Oregonians have spoken against higher gas taxes and fees. Now, the state needs to find a new way to fund transportation. Expect more political debates on this issue. If you care about Oregon's roads, it's worth forwarding this to your local representative.