Oregon DOT Avoids Layoffs, Service Cuts With Temporary Funding Shift

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The Oregon Department of Transportation (ODOT) says it can avoid layoffs and deep service cuts due to the state legislature redirecting existing ODOT funds to support operations and maintenance. However, the rerouted funding will delay or reduce programs like Safe Routes to Schools and Connect Oregon.

Why it matters

ODOT's budget shortfall was $297 million, so the temporary funding shift allows the agency to maintain critical highway maintenance, safety, and DMV operations. But it comes at the expense of delaying or reducing other transportation programs that support infrastructure, safety, and access.

The details

The legislature sent ODOT $218 million from funds that were earmarked for other programs. This will prevent layoffs and widespread service reductions, but ODOT says it has about 700 vacant positions statewide, representing nearly 15% of the agency's workforce. ODOT expects to begin hiring for an estimated 350 critical vacancies immediately.

• The funding shift was announced on March 10, 2026.
• ODOT officials say the fix is temporary, and lawmakers plan to revisit transportation funding during the 2027 legislative session.

What’s next

Lawmakers have stated they plan to revisit transportation funding during the 2027 legislative session to find a more permanent solution to ODOT's budget shortfall.