Full Breakdown
Oregon's May 19 Referendum on Transportation Funding
5/10/2026, 11:17:04 PM
Legislative Background
In summer 2024 a bipartisan group addressed a $2 billion transportation deficit and a declining gas-tax base. Governor Tina Kotek signed a narrowed bill raising the gas tax and vehicle fees. Republicans collected 250,000 signatures—far above the 78,000 required—to put Measure 120 on the May 19, 2026 primary ballot, letting voters keep or repeal the increases.
Key Numbers
The gas tax rises from 40 cents to 46 cents per gallon, placing Oregon tied for the eighth-highest combined rate nationally. State gasoline prices are about 80 cents above the $4.50 national average. ODOT warned the funding gap could cost roughly 500 transportation jobs.
Government Position
Governor Kotek called the measure a “tough sell” amid household-budget pressures and convened a workgroup to craft a funding plan regardless of the vote. Rep. Val Hoyle opposed the increase, citing $6-$7-per-gallon prices. Democratic leaders tied the price surge to the Iran war and urged a federal gas-tax cut.
Opposition Arguments
State Sen. Bruce Starr led the campaign, stating “The answer is no” and warning the package adds to high costs. Republican strategist Rebecca Tweed cited the 250,000 signatures as proof of resistance. Resident Michael Burch called the tax an extra burden.
Voter Sentiment
Portland resident Jeanine Holly called the timing “a hell of a time to be raising gas taxes on people.” Retiree Michael Burch said he now pays $80 for just over half a tank, up from $70. Kurt Borneman, 68, supports the increase despite a $10 higher fill-up cost, citing road quality.
Unresolved Issues
Democrats blame the Iran war for the gasoline price spike; Republicans cite broader inflation, presenting competing explanations. Sources lack details on revenue allocation to road projects or projected ODOT job cuts. No organized Democratic opposition exists.
Verbatim Quotes
- “Certainly the conversation at the ballot this year on whether or not any increase in the gas tax to help maintain our roads and highways is a tough sell right now because I think everyone is feeling the pinch on their household budgets,” — Gov. Tina Kotek, Governor of Oregon
- “I can't see putting a gas tax on Oregonians when we've got gas that's going to be six or seven dollars a gallon. I just, most of my constituents won't support it, and no, I won't support it,” — Rep. Val Hoyle, U.S. Representative
- “I'm sick and tired of taxes,” — Michael Burch, retiree
Future Outlook
The workgroup Kotek convened will report recommendations by year-end. The May 19 vote will decide whether the 6-cent gas-tax increase and related fee hikes stay in place, shaping Oregon’s transportation financing for the coming years.
