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Oregon Department of Transportation Lays Off Nearly 500 Workers

PORTLAND, OREGON, JUL 7 – The Oregon Legislature's failure to pass a funding package created an $11 million deficit, forcing Portland to cut about 50 transportation jobs and pause maintenance projects, officials said.

  • Governor Tina Kotek announced Monday that nearly 500 employees at Oregon’s transportation agency will be laid off this month following the conclusion of the legislative session.
  • The layoffs follow the Oregon Legislature's failure last month to pass a key transportation funding package meant to address a $350 million shortfall.
  • The agency plans to shut down a dozen maintenance facilities and postpone equipment upgrades, which will impact highway repairs, safety initiatives, and roadside assistance throughout the state.
  • Kotek emphasized that this crisis could have been avoided and highlighted that there remains an opportunity to take action, while advising Oregonians to prepare for service reductions, including fewer pothole repairs and less snow removal.
  • Without new funding, a second wave of layoffs could occur in early 2026, implying significant ongoing impacts on Oregon’s transportation infrastructure and rural communities.
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KOIN 6 broke the news in Portland, United States on Monday, July 7, 2025.
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