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Public outcry as committee redirects multimodal and rail funds to plug ODOT shortfall
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Summary
The subcommittee advanced SB 1601 with a dash‑3 amendment that redirects multimodal, Safe Routes to School and rail matching funds to cover an ODOT budget shortfall, prompting extensive public testimony from transit, climate and community groups warning of lost federal matches and harms to vulnerable communities.
The Capital Construction Subcommittee moved SB 1601 as amended (dash 3) to the full Ways and Means committee after vigorous debate and sustained public testimony opposing the amendment’s transportation fund reallocations.
Presenters and LFO staff explained the amendment addresses an approximately $288 million shortfall in ODOT’s budget caused in part by a ballot‑measure revenue effect and recent forecast changes. The dash‑3 amendment temporarily redirects funds from multimodal programs (including the Transportation Operating Fund and community charging/rebates), Safe Routes to School and Connect Oregon match funds to stabilize maintenance and preservation work.
Witnesses from advocacy groups and local organizations argued the cuts would forfeit federal matching dollars, harm rural and low‑income communities, and jeopardize passenger rail progress. Richard Shepherd of the Association of Oregon Rail and Transit Advocates warned removal of local matching funds could cost the state more than $300 million in federal matches and set back planned Amtrak Cascades and rail yard investments. Multiple testifiers urged the legislature to seek a comprehensive transportation revenue package in the 2027 session instead of one‑off reductions.
Representative Nathan Smith and other members acknowledged the difficulty of the choice; Senator Lieber explained the temporary reallocation responds to a near‑term revenue loss and emphasized the committee’s intent that the change be short‑term while a longer‑term solution is pursued. One committee member registered opposition during the roll call; the motion to move SB 1601 as amended carried.
Members said they will continue conversations with stakeholders and monitor the impacts of redirected funds, particularly where federal matches depend on state commitments.
