Oregon Transportation Funding Fight: Referendum Drive and Delayed ODOT Layoffs
Two related developments in Oregon's transportation funding dispute are covered: a referendum campaign led by state Rep. Ed Diehl seeking to send gas tax and registration fee increases to voters, and Gov. Tina Kotek's earlier move to delay nearly 500 ODOT layoffs while lawmakers worked toward a funding deal. The reports differ in timing and focus, with one centered on the legislative funding gap and layoff threat in mid-2025, and the other on the anti-tax referendum effort that followed in 2026.
Oregon's transportation funding debate involved a legislative bill to raise the gas tax and vehicle registration fees, intended to address a funding shortfall at the Oregon Department of Transportation (ODOT). In July 2025, Gov. Tina Kotek delayed nearly 500 planned ODOT layoffs and kept 12 maintenance facilities operational after lawmakers failed to pass a road-funding measure, directing a 45-day delay based on renewed prospects that the Legislature would address a $354 million funding gap. By April 2026, state Rep. Ed Diehl, described as a Trump supporter, had emerged as the leader of a grassroots campaign opposing the enacted transportation funding bill's tax and fee increases. The campaign referred the tax hikes to voters through a referendum process and reported collecting 250,000 signatures within a 30-day period. These two reports, from different publishers and different months, reflect sequential stages of the same broader funding dispute: the initial 2025 budget shortfall and layoff threat, followed by a 2026 voter-referendum challenge to the funding legislation that was ultimately passed. The current status of the referendum, including whether the signature count has been officially verified or whether the measure will appear on a ballot, is not specified in the available reporting. Details about what funding bill was ultimately passed by the Legislature after the 2025 special session, and the specific provisions being challenged by the referendum, remain unconfirmed. It is also unclear whether the ODOT layoffs were permanently averted or only postponed pending the outcome of the funding fight.
SOURCE COMPARISON
How the coverage differs
Oregon Republican lawmaker leads referendum drive against transportation funding bill
State Rep. Ed Diehl, an outspoken Trump supporter, mounted a rebellion against the Oregon Legislature's transportation funding bill, which would raise the gas tax and vehicle registration fees, by referring the tax hikes to voters. With Diehl as its leader, the grassroots anti-tax campaign collected 250,000 signatures in just 30 days.
Read original report ↗Gov. Tina Kotek delays ODOT layoffs, announces August special session
Oregon Gov. Tina Kotek delayed nearly 500 layoffs at the Oregon Department of Transportation, ensuring 12 maintenance facilities remain operational after lawmakers failed to agree on a major road-funding bill. Kotek directed ODOT to delay the layoffs for 45 days, citing renewed likelihood the Legislature would fill a $354 million funding gap.
Read original report ↗