Oregon plugs $297M ODOT budget hole, but long-term funding fight remains
Published on March 10, 2026.
Oregon lawmakers have approved a short-term plan to help the Oregon Department of Transportation (ODOT) close a nearly $300 million budget shortfall, avoiding layoffs and major service cuts, while shifting funds from other transportation programs to keep basic services running. The plan addresses a $297 million gap in ODOT's maintenance and operations budget for the 2025-27 biennium, which supports highway crews, safety and storm response, and DMV services. The move prevents immediate disruptions to road maintenance and DMV operations, but state officials warn it is only a temporary solution to deeper transportation funding problems. The changes were authorized in Senate Bill 1601, a budget bill that temporarily shifts funds among several transportation accounts. The bill also cancels a planned Highway 58 passing lane project, freeing up $6 million for operations and maintenance.
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