Background
Portland is experiencing a transportation funding crisis. The Portland Bureau of Transportation (PBOT) is in its eighth year of budget cuts. 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.
Subscribe to PBOT news and updates by topic
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.
In-person open houses
District 4 Local Transportation Funding Open House
- Date: Thursday, Feb. 19
- Time: 6:30-8:30 p.m.
- Location: Rieke Elementary School Gym (1405 SW Vermont St.)
District 1 Local Transportation Funding Open House
- Date: Monday, Feb. 23
- Time: 6:30-8:30 p.m.
- Location: Lent Elementary School Cafeteria (5105 SE 97th Ave.)
District 3 Local Transportation Funding Open House
- Date: Wednesday, Feb. 25
- Time: 6:30-8:30 p.m.
- Location: Atkinson Elementary School Cafeteria (5800 SE Division St.)
District 2 Local Transportation Funding Open House
- Date: Tuesday, March 3
- Time: 6:30-8:30 p.m.
- Location: Dr. Martin Luther King Jr. Elementary School Cafeteria (4906 NE Sixth Ave.)
Online open house and survey
Full presentation and survey will be live Thursday, Feb. 19. Start here:
Online open house - Local transportation funding