Rep. Cate: Special Legislative Session update

By Oregon State Representative Jami Cate,

The first “Special Session” of the 2025-2026 interim continues to stretch on, with the Senate once again delaying its vote on the $4.3 billion transportation tax package—now pushed off until this upcoming Monday due to Senator Gorsek’s (D, Troutdale) absence while recovering from surgery. Gorsek is a key vote that the Democrats will likely need. That means the conclusion of this drawn-out session will collide directly with Legislative Days, which are normally held during a quieter time during the interim when committees have organizational meetings, lawmakers prepare for the next regular session, and the building is once again buzzing with lobbyists, stakeholders, and members of the public. Instead, a lot of this will be overshadowed as we watch to see if Senate Democrats can finally muster the votes to push this package through, which they have been fighting to do since the long session earlier this year.

New to following HB 3991, the big transportation bill? Here are some of the top-line numbers:

• A six-cent increase to the gas tax
• An increase in car registration fees by $42
• An additional $30 registration fee for electric vehicles and vehicles that get high gas mileage
• Increasing titling fees by $139
• Double the 0.1% payroll tax for the State Transportation Improvement Fund, which pays for transit services
• A new road user charge (RUC)

At the same time, Governor Kotek and legislative Democrats are still risking billions of taxpayer dollars in their standoff with the federal government. Rather than welcome federal tax relief that leaves more money in Oregonians’ pockets through measures like “No Tax on Tips” and “No Tax on Overtime,” they’re floating plans to sever Oregon’s tax code from the federal code in order to keep more revenue flowing into Salem. And when the Oregon Health Authority tried to block a federal request for Medicaid data—information needed to ensure funds go only to eligible recipients—the state nearly jeopardized $11 billion in federal health care support before backing down under the threat of a $50 million lawsuit.

On top of everything else, there’s also been a shakeup in Republican leadership. Senate Minority Leader Daniel Bonham (R, The Dalles) announced his resignation from his leadership position and his seat next month, and endorsed House Minority Leader Christine Drazan (R, Canby) to be appointed to his Senate seat, kicking off an upcoming leadership election in the House. In the meantime, Senator Bruce Starr (R, Dundee) has stepped in as the new Senate Republican Leader.