Oregon Voters Crush Measure 120 by 83%, Blocking 6-Cent Gas Tax Increase
Updated
Updated · KATU · May 20
Oregon Voters Crush Measure 120 by 83%, Blocking 6-Cent Gas Tax Increase
15 articles · Updated · KATU · May 20
83% of Oregon voters rejected Measure 120 on Tuesday, killing a transportation package that would have raised the gas tax by 6 cents a gallon along with vehicle and payroll taxes.
The measure was designed to shore up Oregon’s transportation system as ODOT warns rising labor and construction costs, better fuel efficiency and more EVs are flattening gas-tax revenue.
A nearly $300 million budget hole at ODOT was already patched during the 2026 session, so the defeat does not trigger immediate service cuts or fee changes.
Future budget cycles still face a sizable funding gap, leaving lawmakers to revisit possible layoffs, maintenance reductions and other transportation cuts in the 2027 session.
Measure 120 emerged from a scaled-back compromise after a larger 2025 plan failed, and opponents forced the referendum by submitting more than 200,000 signatures.
With its gas tax failing, what is Oregon's plan to fund its roads and avert the looming 2027 budget crisis?
After voters said no to higher fees, which specific road projects and community programs in Oregon will now be cut or delayed?