Oregon DOT Faces $200M Budget Gap, May Cut 550 Jobs Amid Staffing Shortages

NewsData.io · United States · Aug 3, 2026

The Oregon Department of Transportation is confronting a $200 million budget shortfall for the 2027–29 cycle, driven by inflation and declining gas tax revenue as EV adoption rises. Without new legislative funding, the agency may eliminate nearly 550 positions — 11% of its workforce — across maintenance, DMV, project delivery, and administrative divisions. The DMV division is already experiencing severe staffing shortages causing dozens of office closure days since January 2026, with cuts likely to worsen rural service gaps. A stakeholder group appointed by Gov. Tina Kotek is working on revenue recommendations ahead of the 2027 legislative session.