Oregon Legislature to Consider Transit Funding Laws

One proposal would increase the state’s payroll tax by .08% to fund transit agencies and expand service.

1 minute read

April 22, 2025, 10:00 AM PDT

By Diana Ionescu @aworkoffiction


Portland Oregon Bus

radcliffe dacanay / Flickr

Oregon legislators are considering a package of proposed transportation funding laws that could help expand transit access to parts of the state where transportation is currently difficult to come by and increase service on existing lines.

As Vasili Varlamos explains in an article for KATU, the funding would prevent anticipated cuts of up to 30 percent. “In a transportation funding proposal released in early April, the lawmakers proposed a .08% increase to the state payroll tax. This would increase the payroll tax to .18%. According to the proposal, this would generate $268.6 million for public transit every two years.”

Some lawmakers think transit agencies should put a bigger emphasis on fare enforcement to maximize fare revenue. Others pointed out the benefits of better transit for all Oregonians. “If you drive and you depend on uncongested roads, we need to have public transit so that people have options that help breathe cleaner air for all of us,” said State Senator Khahn Pham.

Thursday, April 17, 2025 in KATU.com

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