As the Oregon Legislature convenes for its 35-day “short session” starting February 2, 2026, state leaders are confronting urgent challenges including a deep budget shortfall at the Department of Transportation (ODOT), potential layoffs of nearly 500 state employees, and federal-level immigration pressures. With a high-stakes agenda and constrained timeline, lawmakers must act swiftly to navigate these crises.

The condensed session—limited to 35 days and capped at two bills per legislator and three per committee—is designed to keep the focus tight and solutions rapid. Legislative deadlines required bill filings by January 16. Key priorities include realigning the budget amid declining revenues and responding to federal policy changes, particularly around immigration enforcement. Democratic supermajorities in both chambers are expected to smooth the legislative path. Oregon Legislature newsletter reports these constraints and broader goals.

ODOT is facing a projected $242 million deficit for the 2025–2027 biennium following the voter-driven delay of fuel and vehicle fee increases. House Bill 3991, enacted in 2025 to provide this revenue, has been partially postponed from implementation pending a public referendum. In response, Governor Tina Kotek has urged lawmakers to repeal HB 3991 and seek more stable, long-term funding solutions. Without legislative action, ODOT warns of staff reductions and service cuts. These developments are outlined on ODOT’s official site, updated January 14, 2026.

Update: Lawmakers consider moving gas tax referendum

On February 10, 2026, Oregon lawmakers held a hearing on a new proposal to move the public vote on Governor Kotek’s gas tax measure from the November general election to the May primary. According to reporting by KOIN 6 News, supporters of the change argue that shifting the election date could expedite resolution of the funding gap and provide clarity to ODOT before expected layoffs take effect in summer. Critics contend that altering the timing could reduce voter participation and upset the normal electoral balance. The proposal remains under consideration as part of broader efforts to address the transportation funding crisis.

Layoffs are not hypothetical. ODOT has already prepared layoff notices affecting approximately 483 positions—about 10% of its workforce—set to take effect in July if the Legislature does not intervene. The agency has warned of reduced maintenance work, such as pothole repairs, snow plowing, and guardrail fixes, along with closures of outposts and scaled-back contract services. Governor Kotek continues to push for legislative solutions to avert chaos on Oregon’s roads. These warnings were detailed in reports by OPB on July 7, 2025, and further contextualized by the Oregon Capital Chronicle.

On the federal front, Oregon Democrats are gearing up to respond to heightened immigration enforcement by the Trump administration. Legislative plans previewed on January 14, 2026, include at least seven bills targeting this issue. Combined with funding urgency and revenue gaps, Oregon’s leaders face a challenging session, but with sufficient control of the legislature, policy movement is anticipated swiftly.

For communities across Oregon—urban and rural alike—the implications are profound. Failing to address ODOT’s budget shortfall could disrupt essential transportation services, delay infrastructure maintenance in rural areas, and jeopardize public safety during winter weather. Meanwhile, immigration-related legislation could influence how Oregon handles enforcement, civil rights, and community trust at a time of national uncertainty.

As Salem’s lawmakers enter this fast-paced session on February 2, they carry the weight of preventing layoffs and preserving transportation networks, while also responding to federal policy shifts. In a compressed timeframe, the success or failure of their efforts will be felt across the state.

Sources: