Local Transportation Funding

Background

Portland is experiencing a transportation funding crisis. Since 2019, the Portland Bureau of Transportation (PBOT) has been making reductions in General Transportation Revenue-funded programs and services. Our streets are deteriorating, our bridges are aging, and we can't afford to make the safety improvements our communities are asking for.​ 

The longer we wait to repair our transportation assets, the more expensive and expansive the problems get. The cost of transportation construction has gone up, and funding hasn't increased to pay for it. Every year we receive requests we cannot fulfill to create a safer system because we do not have the funds, a frustrating situation for city leaders, Portland residents, and PBOT workers who want to effectively serve their community.

At the same time, the federal gas tax hasn't been increased in 32 years, and recent federal efforts have resulted in rescinding existing grants and a more competitive grant environment. Federal funding that PBOT does receive is dedicated to specific projects and is not available to fund basic operations and maintenance, such as repaving roads and filling potholes.

At the state transportation funding level, funding hasn't kept pace with inflation, and the most recent state transportation funding bill was partially referred to voters, suspending most tax and fee increases. As a result, PBOT can no longer count on receiving ~$10.6 million in Fiscal Year 2025-26 and ~$24 million in Fiscal Year 2026-27.

Locally, the Fixing Our Streets 10-cent per gallon gas tax has also not kept up with inflation and now has half the buying power that it did when it first passed in 2016.

As the city's transportation maintenance backlog continues to grow, Portland City Council is considering new ways to fund the maintenance and operation of Portland's streets, sidewalks, bridges, signs, lights, and other infrastructure. Join the conversation about local transportation funding and weigh in on a variety of options and opportunities. 

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Timeline

• In the context of Portland's deepening transportation budget crisis, City Council adopted Resolution 37712 in July 2025. The resolution directs the Public Works Service Area and Budget and Finance Service Area to "develop a comprehensive strategy to identify and evaluate viable alternative funding sources."
• City staff developed an Alternative Transportation Funding Report reviewing possible funding approaches and presented it to the City Council Transportation and Infrastructure Committee on Dec. 15, 2025. The Transportation and Infrastructure Committee directed staff to further develop four revenue approaches. 
• City staff presented possible scenarios for the four revenue approaches to the Transportation and Infrastructure Committee on Jan. 26, 2026. Staff were directed to proceed with public review.
• The project had four open houses (one in each district) between February 19 and March 3^rd.  The open house materials were made available online, and an online survey was open February 19 - March 4.
• Staff presented the feedback from the open houses and survey to the Transportation and Infrastructure Committee on March 9.
• City Council's new Finance and Governance Committee of the Whole considered an ordinance and a resolution on April 2 to establish a Transportation Utility Fee and affirm support for a Street Damage Restoration Fee.
• The Committee advanced the Street Damage Restoration Fee Resolution to the full Council.
• At the April 15 City Council meeting, they approved the Street Damage Restoration Fee resolution. 
• The Committee continued their discussion on the Transportation Utility Fee on April 15 at 2 p.m. They amended and moved the ordinance to a full Council meeting. 
• At the April 30 City Council meeting, they approved the Transportation Utility Fee ordinance.

In-person open houses

In February and March 2026, the project had four open houses. 

• District 1 - Feb. 23 at Lent Elementary School
• District 2 - March 3 at Dr. Martin Luther King Jr. Elementary School
• District 3 - Feb. 25 at Atkinson Elementary School
• District 4 - Feb. 19 at Rieke Elementary School

Online open house

The online survey is now closed, but materials can still be reviewed online.

Online open house - Local transportation funding

Presentations and materials

• Materials and Video Recording of the Transportation & Infrastructure Committee meeting on Dec. 15, 2025
• Report presented at December 15 meeting
• Materials and Video Recording of the Transportation & Infrastructure Committee meeting on Jan. 26, 2026
• Materials and Video Recording of the Transportation & Infrastructure Committee meeting on March 9, 2026
• Materials and Video Recording of the Finance & Governance Committee of the Whole on April 2, 2026

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