US Edition
Trump Bill Will Cost Oregon $880M in Tax Collections, State Economists Say
Federal tax cuts under H.R. 1 are expected to reduce Oregon's tax revenues by $888 million, causing a $373 million deficit in the 2025-27 budget despite a $472 million buffer set by lawmakers.
- State economists told lawmakers Wednesday that passage of House Resolution 1 reduces General Fund revenue by $888.2 million, dropping the 2025-27 balance by $621.1 million and creating a $373 million deficit.
- Because the state uses a 'rolling reconnect' approach, H.R.1 provisions like overtime pay exemptions and business deduction changes reduce Oregon's taxable income by hundreds of millions, with overtime rules alone costing $221 million.
- The forecast shows specific tax lines will lose revenue as H.R.1 is estimated to cut personal income tax collections by $586 million and corporate tax collections by $300 million, while the corporate kicker will not be returned to businesses.
- Lawmakers now face a choice to cut spending or change state tax law to close the shortfall, despite the Oregon Legislature setting aside a $437 million buffer at session end.
- Gov. Tina Kotek warned the state could lose nearly $15 billion in federal funding in coming years, while national GDP slowing to 1% with a 35% recession risk worsens fiscal pressures.
16 Articles
16 Articles
Oregon faces $888 million revenue loss. Here's why
PORTLAND, Ore. (KOIN) — Oregon will have $845.5 million less than previously expected in its general fund for the next two years. State economists presented their latest revenue forecast to legislators on Wednesday, which included the impact of recently passed federal legislation, H.R. 1. Oregon faces $15 billion loss in federal funding for health and food programs The legislature ended its 2025 session with $472.8 million in available fun…
Oregon Capital Chronicle
Oregon economy slows, will take $888 million revenue hit in next two years from Trump budget
President Donald Trump holds up the "One Big Beautiful Bill Act" that was signed into law during an Independence Day military family picnic on the South Lawn of the White House on July 4, 2025 in Washington, D.C. (Photo by Alex Brandon - Pool/Getty Images)This is a developing story and will be updated. Oregon will see a two-year budget with a positive $472 million balance evaporate and turn into a $373 million deficit under the Trump administra…
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