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What is the Transportation Utility Fund?

Information
PBOT crews finish paving on NW 23rd Avenue, revealing a smoother and safer main street.View full size image
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 Transportation Utility Fee to fund basic road maintenance and safety improvements, paid by residents and businesses.

What is it?

The Transportation Utility Fund provides local funding to pay for basic road maintenance and safety improvements on Portland streets. Funds come from the Transportation Utility Fee, which is a charged monthly on existing public utility bills to residents and businesses in Portland. Funds go into the Transportation Utility Fund to pay for basic road maintenance and safety improvements. Similar fees exist in 31 cities in Oregon.

How will it work?

  • The city will collect this fee, starting on January 1, 2027, using existing public utility billing systems 
  • For 2027, the Transportation Utility Fee will be charged to residential households at the following rates:  
    • Single-family households $12/month
    • Multi-family households $8.40/month 
  • Low-income households can use existing financial assistance programs available for the public utilities
  • Business/commercial accounts will be charged 4.3% of their existing water/sewer/stormwater bill. This approach will be revised for 2027 to better reflect the connection with transportation impacts and benefits.   

How will the money be spent?

  • The Transportation Utility Fee is expected to bring in an estimated annual revenue of $46 million.
  • 75% of the annual revenues will be spent on maintaining, preserving and rehabilitating existing transportation infrastructure, like pavement, streetlights and signals, etc.
  • 25% of annual revenues will be spent on transportation-related safety expenses. Half of that (12.5% of the total) will be spent on work that advances Vision Zero goals. The rest will be spent on sidewalks and pathways.
  • The investments will be based on asset and infrastructure data. Investments will also be prioritized in areas that have historically experienced under-investment and have high concentrations of low-income households. 
  • PBOT will provide annual reports to City Council, including the results of an external audit. The Local Transportation Funding Committee will provide ongoing oversight, reviewing regular reports throughout the year.

Timeline

  • City Council adopted the fee on April 30, 2026
  • Public Works Service Area staff are working closely with the Revenue Division to develop a process and administrative rules for the new Transportation Utility Fee.
  • Staff are also working on developing potential new approaches to a low-income discount for residential properties, and to the rate structure and appeal process for commercial/nonresidential properties. Progress will be reported to City Council at the end of 2026.

 

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