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ODOT warns of $242 million shortfall; agency outlines tiered cuts that could close DMV offices and maintenance stations

Joint Ways and Means Committee Subcommittee on Transportation and Economic Development · February 10, 2026
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Summary

ODOT leaders told the Joint Ways and Means Committee Subcommittee on Transportation and Economic Development that the State Highway Fund faces a roughly $242 million shortfall this biennium (figures cited up to $288M), and presented a three-tiered set of cuts that, without legislative action, could eliminate positions, close DMV field offices and rest areas, and delay projects.

Lisa Sumption, interim director at the Oregon Department of Transportation, told the Joint Ways and Means Committee Subcommittee on Transportation and Economic Development on February 10 that ODOT faces a $242,000,000 State Highway Fund shortfall this biennium and that, depending on updated savings, the agency has also referenced a figure nearer $288,000,000.

"ODOT's facing a a budget gap of $242,000,000," Sumption said as she opened the agency’s informational presentation. Finance and budget division administrator Daniel Porter described an agency funding model that has been strained by a plateau in gas-tax revenue and by inflation-driven cost increases.

ODOT laid out a tiered approach to close the gap. Tier 1 is roughly $70…

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