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In 2026, Portland City Council considered new ways to fund the maintenance and operation of Portland’s transportation system. In April 2026, Council adopted a Street Damage Restoration Fee to pay for paving maintenance. It is assessed on entities like utilities that dig into the public right-of-way.
What is it?
The Street Damage Restoration Fund provides local funding to pay for paving maintenance on Portland streets. Funds come from the Street Damage Restoration Fee, which is a fee assessed on utility companies, contractors, or other entities that excavate and trench in the public right-of-way. City Council passed a resolution to add this fee in Portland on April 15, 2026.
Why do we need a fund for street damage?
- Over the last 3 years, the equivalent of 50 miles of Portland streets has been trenched for excavation.
- Trenching reduces the useful life of pavement by over 60%. This means the street needs to be repaved again in 5 years instead of 15.
- Cities like Los Angeles, San Francisco, Oakland, San Diego, and Seattle all fund paving maintenance with street damage restoration fees.
How will it work in Portland?
- The city is modifying its Street Opening Permit process which is already required to install, repair, or maintain underground infrastructure for water, sewer, gas, power, and telecommunications.
- Starting on January 1, 2027, street opening permits will include the damage fee. The public administrative rulemaking process is anticipated to begin summer 2026 and conclude in the fall.
How will the money be spent?
- The Street Damage Restoration Fund will be spent on pavement maintenance and restoration.