14 bills, ideas of 2026 (super-fast) Legislature

By Taxpayers Association of Oregon
OregonWatchdog.com

As the 2026 Oregon Legislature kicks off its short 35-day session, several bills and priorities are generating considerable discussion:

• Gas Tax Election : Governor Tina Kotek has suggested shifting the referendum on the $4.3 billion gas and wage tax from the November general election to the May primary, a move that could see voter turnout drop by as much as 60%.

• Gas Tax Ballot Title tricks: Lawmakers are tasked with ensuring that attempts by some of their liberal colleagues to create a biased committee for drafting the gas tax ballot measure title and summary are thwarted. It’s crucial that voters have a clear understanding of how this measure affects their finances.

• People’s Kicker Proposal: A Democrat legislator has introduced a plan to divide any surplus above $300 million rather than returning all surplus funds to taxpayers under the 1970s tax rebate law. This proposal, which would require voter approval to amend the state constitution, seeks to allocate excess funds between taxpayers and the state, targeting education and wildfire prevention and response.

• Carbon Tax Initiatives: Legislation is in the works to impose fines on 50 energy companies (in the oil, gas, coal, and cement sectors) based on their past environmental impacts, which opponents estimate to cost Oregon $5 billion. Additional proposals include requirements for installing solar energy and raising hotel taxes to support conservation efforts.

• Retail Sales Tax: Senate Bill 1507 aims to lower certain taxes while introducing a statewide retail sales tax.

• Business Tax Increase: House Bill 4015 seeks to counter some of President Trump’s 2025 tax cuts, aiming to generate $300 million from businesses. Endorsed by union advocates, this measure would reverse parts of the federal tax cuts that critics argue primarily benefit the wealthy.

• Gun Permit Bureaucracy: HB 4145 proposes changes to the Ballot Measure 114 gun law, extending the permit processing time from 30 to 60 days, raising permit fees by 130% (from $65 to $150), and postponing the mandate for permits until 2028.

• ICE Agents in Hospitals: Following a Border Patrol shooting at Adventist Health in Southeast Portland, state lawmakers are exploring regulations to limit federal ICE interference in hospitals. As state authorities cannot oversee federal agents, measures may include designating public and private areas within facilities, safeguarding patient information, prohibiting retaliation against employees who provide educational resources, and ensuring that interactions with federal agents are handled by supervisors rather than nurses or receptionists.

• Immigration Debate: Democratic legislators aim to restrict ICE activities in Oregon, proposing bans on federal agents’ use of face masks. Meanwhile, Republicans emphasize the need for ICE to continue addressing crime related to drug and human trafficking. Oregon’s sanctuary laws prevent local law enforcement from aiding federal agents in their efforts.

• Sanctuary Cities Dispute: A Democratic representative suggests that Oregon should withhold federal funding if the federal government cuts payments to the state, citing its status as a sanctuary state since 1987. President Trump has threatened to withdraw funding from jurisdictions that protect immigrants from deportation, which could impact roughly $22 billion in annual funding for Oregon.

• Limiting License Plate Data Use: Proposed legislation aims to restrict specific applications of license plate data collected by cameras. While law enforcement defends the use of license plate recognition as a crime prevention tool, critics argue that this data has been misused by federal ICE agents for immigration arrests and by others identifying out-of-state women seeking abortions.

• Healthcare Spending: Lawmakers need to find solutions to manage healthcare spending for state employees and the one million low-income Oregonians covered by the Oregon Health Plan. With a projected $749 million shortfall in the health care reserve, the state faces challenges in balancing the budget and implementing necessary federal Medicaid changes. Some of these changes require able-bodied adults (ages 19-64, without children, not attending college) to volunteer for charity while receiving benefits.

• Housing Crisis: In response to skyrocketing housing prices, lawmakers are pursuing legislation to simplify home construction by easing land-use regulations and providing estate tax exemptions. Governor Kotek is advocating for a one-time exemption from the Urban Growth Boundary.

• Mental Health Worker Shortage: A proposal aimed at reducing bureaucratic hurdles for certifying mental health workers could alleviate the shortage of professionals available to assist individuals with mental health and addiction challenges. This measure intends to streamline paperwork and expedite the licensing process for behavioral health workers.