The Oregon Department of Transportation will avoid layoffs and major service reductions after new legislation addressed a $297 million budget shortfall for the agency’s maintenance and operations work, according to a March 9 announcement.
The legislative move is significant because it prevents disruptions to daily travel and essential services that would have resulted from workforce cuts. Highway maintenance crews will remain on duty, safety and storm response operations will continue, and Department of Motor Vehicles offices will stay open to serve customers.
The legislation redirects $218 million from existing state transportation funds to support ongoing operations and maintenance. However, some programs will be affected by delayed or reduced grant funding, including Safe Routes to School—which supports projects improving safety for students walking and biking—and Connect Oregon, which invests in aviation, rail, and marine projects.
“This legislative action provides important short-term stability for Oregon’s transportation system,” said Interim Director Lisa Sumption. “It allows us to avoid deep reductions while continuing to focus on providing the services Oregonians rely on. At the same time, redirecting existing funds from programs that serve important functions is not a long-term solution. Oregon’s transportation system needs a long-term fix.”
In addition to redirecting funds, the adopted budget reduces ODOT’s authorized spending by nearly $80 million. The agency has already taken steps in recent years to control costs by leaving positions unfilled; since 2019, it has reduced spending by more than $500 million. The current budget reflects over $200 million in reductions. Currently about 700 positions are vacant statewide—nearly 15% of the workforce—with more than 350 vacancies resulting from employees leaving during financial uncertainty since July 2025.
Under the new budget plan, more than 130 positions will remain unfilled but hiring for critical vacancies is expected to begin immediately. This aims to restore staffing in key areas and strengthen frontline teams across Oregon.
While this legislative action stabilizes operations through the end of the current budget cycle, it does not resolve underlying funding challenges facing Oregon’s State Highway Fund—a resource supporting not only ODOT but also cities and counties statewide. Lawmakers have indicated they plan to revisit transportation funding during the 2027 legislative session.
