OregonHB 52042026 Regular SessionHouseWALLET

Relating to state financial administration; and declaring an emergency.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

131 provisions identified: 90 benefits, 24 costs, 17 mixed.

Bigger budget for Oregon Medicaid

The state increases Medicaid funding for 2025–2027. It adds $158,406,094 from the General Fund. OHA can spend $32,552,383 more from non‑General Fund revenues. The federal spending cap for compensation costs goes up by $395,933, and $289,071 in state funds covers those costs. This supports Medicaid services; it does not change who qualifies.

More funding for disability support services

The law increases state and federal money for disability support services through June 30, 2027. It adds $36.4 million in General Fund support and raises federal spending limits by about $204.6 million. A small $17,321 adjustment also raises a program cap. This helps providers keep staff and services for people with intellectual and developmental disabilities.

More support for seniors and disabled Oregonians

The law adds major funding for aging and disability services in the 2025–2027 biennium. DHS gets more General Fund money (about $56 million) and higher federal spending limits (about $153 million). A separate DHS spending cap also rises by $35.6 million. ARPA funds increase by $437,875 for long‑term care workforce and preparedness. This helps keep in‑home help, long‑term care, and related services available through June 30, 2027.

Releases $103.5 million in lottery bonds

The state authorizes $103.5 million to disburse lottery bond proceeds carried forward into the 2025–2027 biennium. The money pays for approved capital and program projects. This shifts funding within the state budget; it does not change tax rates or benefit rules.

More federal funds for rural health

The law sets a federal fund spending cap of $345,225,261 for Oregon’s Rural Health Transformation Program. The cap applies for the 2025–2027 biennium. It defines how much federal money the health authority can use to support rural care in that period.

Less money for state worker raises

The law cuts $300 million from the Emergency Board fund for state employee compensation changes for the biennium ending June 30, 2027. This reduces the money agencies use for raises or other pay changes. State employees may see smaller or delayed pay changes in this period.

Large cuts to Oregon Medicaid

For 2025–2027, the state cuts Medicaid funding. The General Fund drops by $130.2 million. Federal spending caps fall by $508.4 million and another $204.6 million. OHA can also spend $156.0 million less from fees and other revenues, and $3.52 million less from lottery funds. These changes can affect services or provider payments for Medicaid members.

More funding for vocational rehab services

The law adds funding for vocational rehabilitation through June 30, 2027. DHS gets $12.2 million more in state funds and higher spending caps from federal and other sources (about $9.4 million). This supports job training, counseling, and employment services for people with disabilities.

More down payment help for buyers

The Housing and Community Services Department can spend $37,771,236 more through June 30, 2027 for single‑family programs. The money supports down payment help and building affordable homes for purchase. Low‑income homebuyers who qualify can get help with upfront costs.

More money for home energy upgrades

The state adds $15 million in federal funds for housing energy‑efficiency projects through June 30, 2027. Upgrades can lower utility bills for households that take part. Low‑income households are likely priorities for help.

More grants for restoration projects

The Oregon Watershed Enhancement Board can award $35 million more in grants in 2025–2027 for projects approved by the Environmental Restoration Council. This expands funding for environmental restoration work across the state.

More support for public safety agencies

The law changes funding for many public safety agencies for the biennium ending June 30, 2027. Agencies include Corrections, Justice, State Police, the State Fire Marshal, Public Defense, and the Youth Authority. The goal is to support law enforcement, corrections, and emergency services statewide.

More funds for State Fire Marshal

For 2025-2027, the State Fire Marshal gets $7,621,128 for 2025 fire‑season emergency response and $7,000,000 for 2026 response. The state also adds $6,000,000 for wildfire season staffing grants. Fee‑funded spending increases by $9,509,777 for community risk reduction and by $500,000 for fire cost recovery. These actions expand readiness, response, and prevention.

More grants for local infrastructure

The state boosts local infrastructure work for 2025–2027. It deposits $10 million into the Regional Infrastructure Fund for small local and tribal governments. It creates one-time grants to many cities and districts for named projects, such as Vale ($3 million) and Eugene ($5 million). McMinnville gets up to $1.5 million for Alpine Avenue street work. Crescent Sanitary District gets $100,000 and Falls City gets $700,000 for water and wastewater needs.

More wildfire response funding at Forestry

The State Forestry Department gets major added support in 2025-2027. It adds $69.46 million from the General Fund for the 2025 fire season and $73.6 million more from fees and certain federal funds for that season. It also adds $11.6 million for fire protection administration and $4.98 million to use a Community Wildfire Defense Grant. These resources strengthen wildfire response and prevention.

More federal money for reinsurance

The Division of Financial Regulation can spend $64,197,434 more in federal funds on the Oregon Reinsurance Program through June 30, 2027. This helps stabilize premiums in the individual market. Insured households may see lower premiums and out‑of‑pocket costs.

More funds for self-sufficiency programs

DHS self‑sufficiency programs get $9,607,496 more from the General Fund for 2025–2027. Another $3,481,309 in state funds is realigned to these programs. The federal spending cap rises by $6,451,188. DHS may also use $965,025 more from non‑General Fund receipts. The added funding helps deliver services that support family stability and work.

More health care in prisons

Corrections health care funding rises in 2025–2027. The state adds $21,522,020 for medications for opioid use disorder, $14,352,000 for offsite medical care, and $4,055,147 for health staffing. The Oregon Youth Authority also gets $320,336 to process Medicaid claims. These changes expand treatment access and medical services for people in custody.

More money for benefits eligibility

The Oregon Eligibility Partnership gets $82,638,933 more from the General Fund in 2025–2027. The federal spending cap rises by $8,678,575. It can also spend $3,637,795 more from fees and other receipts. This supports applications, renewals, and case work for health and human services programs.

More money for child welfare services

The state adds funding for child welfare in the 2025–2027 biennium. DHS receives $25.2 million more from the General Fund and can spend $12.4 million more in federal funds. This supports services that protect children and help families through June 30, 2027.

More funds for affordable rentals and loans

The state adds $32,585,695 in federal funds and $1,900,000 more for affordable rental housing through June 30, 2027. It also adds $20,000,000 for below‑market, short‑term loans to build mixed‑income housing. These changes help produce and preserve affordable rental options.

Wildfire recovery housing funds increase

The department can spend $58 million more in federal funds for wildfire recovery through June 30, 2027. The money supports rebuilding, recovery grants, and resilience projects in affected areas. Households in wildfire‑hit communities can get recovery help.

More funding for child care and preschool

Early Learning and Care gets $34,210,392 more for operations and services using corporate activity tax funds. Federal spending for work‑related child care subsidies goes up by $67,232,651. These changes apply through June 30, 2027. The money can help more working families afford care, though eligibility rules do not change here.

Short-term support for Southern Oregon University

The law provides $15 million to the Emergency Board for July 1, 2025–June 30, 2027 to support Southern Oregon University through the higher education commission. The money offers short‑term financial stability. If not allocated by December 1, 2026, any remainder is available for any lawful Emergency Board purpose.

More business loan capital and flexibility

Starting July 1, 2025, the Business Development Department can make loans from certain listed funds without spending caps and pay some debt service outside usual limits (not lottery or general obligation bonds). The law also deposits $5 million into the Industrial Site Loan Fund for the biennium ending June 30, 2027. This adds capital and flexibility to finance industrial sites and development loans.

More credit and grants for businesses

The state can use $3,281,050 more in federal funds for small business credit programs through June 30, 2027. It also adds $10,000,000 for Main Street Revitalization grants and $15,000,000 for the Industrial Site Loan Fund. These changes expand loans and grants that support small businesses and local downtowns.

Less money for self-sufficiency services

For 2025–2027, DHS self-sufficiency programs get less funding. The General Fund drops by $2.42 million. The federal spending cap falls by $9.27 million. The cap on fees and other receipts falls by $3.48 million. Households using employment services, temporary assistance, or case management may see fewer services.

Less money for some bargained raises

The Emergency Board’s General Fund for compensation changes for non‑state workers covered by bargaining is reduced by $75,000,000 in 2025–2027. This can mean less money available to cover negotiated pay changes for those workers.

Disaster and fire funds reduced

The law cuts $65.32 million from statewide disaster prevention, response, and recovery funds for 2025–2027. It also cuts $12.17 million for state fire protection through the State Forestry Department. Less state money is available for disaster and wildfire work in this budget period.

ODOT cuts to roads and DMV

For 2025–2027, the law reduces Oregon Department of Transportation budgets. Maintenance is cut by $13.35 million. Project delivery is cut by $32.21 million, and driver and motor vehicle services are cut by $8.48 million. Capital, administrative, finance, policy, and local programs are also reduced. These cuts may slow some projects and services during this budget period.

Cuts to Oregon Eligibility Partnership funding

For 2025-2027, the Department of Human Services cuts $17,389,276 from the General Fund for the Oregon Eligibility Partnership. DHS also reduces its federal‑funds spending cap for the program by $18,204,566. These changes lower resources for running benefit eligibility systems in this biennium.

Less funding for public and behavioral health

The law reduces money for public and behavioral health in 2025–2027. Behavioral health loses $8.89 million in General Fund and $43.21 million in other revenue authority. Public health loses $1.04 million in General Fund, $1.86 million in other receipts, and $110,468 in federal authority. Oregon State Hospital funding falls by $1.14 million, and OHA central services and analytics also see small cuts. Communities may see tighter program budgets.

Lower spending on health reinsurance

Through June 30, 2027, the state lowers the Oregon Reinsurance Program limit by $57.3 million. With less reinsurance support, people in individual or small‑group health plans could face higher premiums.

Early learning programs lose funding

For the 2025–2027 biennium, early learning programs lose $34.21 million in General Fund support. Families who rely on state early learning or childcare programs may see fewer slots or services.

Housing loans and bond work cut

The law cuts the Multifamily Rental Housing Programs’ revolving loan spending cap by $20 million for 2025–2027 (through June 30, 2027). It also lowers the Housing and Community Services Department’s bond activities spending limit by $1.708 million in that biennium. This means less state loan money for apartment projects and less bond-related work.

Behavioral health funding up, workforce cut

For 2025–2027, Oregon increases behavioral health funding from lottery and federal sources by about $19.4 million. At the same time, it cuts $7.0 million from a behavioral health workforce program. People using services may see added support, while workforce funds are tighter. These changes apply through June 30, 2027.

Changes to natural resource budgets

The law changes budgets for natural resource agencies for the biennium ending June 30, 2027. It adjusts funding for Agriculture, Energy, Environmental Quality, Fish and Wildlife, State Forestry, and related programs. These shifts affect agency operations, not direct household payments.

Extra funds for health and human services

The law provides $100,000,000 to the Emergency Board for July 1, 2025–June 30, 2027. The Board can allocate it to the Health Authority and Human Services to handle caseload changes and new federal rules. If not allocated by December 1, 2026, the rest is available for any lawful Emergency Board purpose. The law also updates human services budgets for the biennium ending June 30, 2027.

Some business grants cut; budgets updated

The law reduces funding for certain Business Development Department infrastructure grants by $640,000 for 2025–2027. It also updates budgets for economic development agencies, including the Business Development and Employment Departments, for the biennium ending June 30, 2027. Some local grant recipients get less, while broader program budgets shift.

More funding for immigration legal help

The state deposits $5,600,000 into the Universal Representation Fund for 2025–2027. It also provides $2,400,000 to the Oregon State Bar, through the Judicial Department, for immigration legal services. These funds help immigrants and noncitizens get legal help.

More legal help for immigrants

The law lets the state pay $5.6 million from the Universal Representation Fund to Oregon Worker Relief in the 2025–2027 biennium (ending June 30, 2027). Oregon Worker Relief serves as the fiscal agent for universal representation services. This money supports legal representation and related services for eligible immigrants and noncitizens.

Small boost for veterans services

The Department of Veterans’ Affairs can accept and spend a $134,000 federal grant through June 30, 2027. The grant supports services tied to the award.

Smoother paid family leave services

The Employment Department can spend $2.99 million more to improve Paid Leave Oregon through June 30, 2027. The money funds system and process upgrades. Eligible workers and families may see faster, smoother benefit claims.

More wolf-loss grants for ranchers

The state deposits $1,000,000 into the Wolf Management Compensation and Proactive Trust Fund for 2025–2027. This money supports grants that compensate livestock producers and fund proactive measures.

Budget boosts for DAS offices

The Office of Economic Analysis gets $252,699 more for operations. The Chief Financial Office gets $4.4 million to pay State Data Center charges and tax reporting contracts. The Chief Human Resources Office gets $781,024 to serve new client agencies and investigations. These increases apply in the biennium ending June 30, 2027.

DCBS staffing and legal costs rise

The Department of Consumer and Business Services raises several spending caps. $211,015 funds classification and pay changes in Central Services. $3,500 covers Building Codes compensation changes. $851,988 covers Workers’ Compensation Board compensation. $100,000 pays legal expenses for the State Board of Tax Practitioners. These are internal budget adjustments for 2025–2027.

DEQ funds for cyber and cleanup

The law gives the Department of Environmental Quality $1,121,515 for cyberattack response and recovery in 2025–2027. It adds $407,871 for land quality work tied to the 2025 Rowena fire. It also allocates $250,000 to DEQ from the Watershed Conservation Operating Fund for watershed projects.

Electronic permitting for mine reclamation

For 2025–2027, the Department of Geology and Mineral Industries gets $700,000 to build electronic permitting for mined land reclamation. This funds ePermitting work.

Fish and wildlife protection funding

For 2025–2027, the state raises spending authority by $1,502,845 to rebuild the Klamath Hatchery hatch house. It also provides $3,118,767 in General Fund to State Police Fish and Wildlife. These funds support fish production and wildlife enforcement.

Funds to fight Japanese beetles

For 2025–2027, the State Department of Agriculture gets $1,800,000 to eradicate Japanese beetles. The money supports pest control to protect farms and communities.

Gorge Commission operations and IT funds

For 2025–2027, the Columbia River Gorge Commission gets $75,000 for information technology, $8,000 for shared services, and $45,000 for commission expenses. The funding supports the Commission’s operations.

Land Use Board admin and HR funds

For 2025–2027, the Land Use Board of Appeals gets $33,504 to pay Department of Administrative Services charges and $24,025 for contract human resources. This supports the Board’s staffing and operations.

More ARPA funds for Corrections

The law raises the Department of Corrections’ ARPA spending cap by $1,033,627 for 2025–2027. The Department of Administrative Services also transfers $1,033,627 in ARPA recovery funds to Corrections. The money supports operations, health services, and public safety work in that biennium.

More DLCD planning and coastal grants

For 2025–2027, DLCD can spend $202,013 more from fees and receipts for planning work under interagency agreements. It can also spend $4,599,793 more in federal funds for NOAA grant projects. These funds support statewide planning and coastal projects.

More DOJ funds to fight online child abuse

For 2025-2027, DOJ’s Criminal Justice Division receives $1,046,286 more to address internet crimes against children. The money supports investigations and prosecutions. It does not change your taxes or benefits.

More federal funds for forestry

The law lets the State Forestry Department spend $5,700,000 more in federal money for agency administration in 2025–2027. The funds cover federal indirect charges and exclude amounts listed in section 2, chapter 609.

More funding for arts and culture

The Trust for Cultural Development can spend $5,367,756 more through June 30, 2027. The money funds grants and programs for arts and culture. Communities and artists benefit; households see indirect effects.

More funding for elections systems

The Elections Division receives $2 million from the General Fund. Another $2 million supports the Oregon Centralized Voter Registration system. This funding covers the biennium ending June 30, 2027. It funds election operations and does not change who can vote.

More funds for emergency management

The law raises the Oregon Department of Emergency Management’s federal fund spending cap by $602,043 for 2025–2027. This pays for agency administration during that biennium. It does not change household eligibility or fees.

More funds for human services

The law adds $8,457,721 in General Fund money to DHS central services for 2025–2027. It also raises DHS shared‑services spending limits by $1,052,775 and Oregon Eligibility Partnership fee and receipt limits by $873,598 through June 30, 2027. These changes fund agency operations and eligibility systems; they do not change who qualifies for benefits.

More funds for solar and heat pumps

For 2025–2027, the Energy Department can spend more from its fees and receipts to run clean‑energy programs: $513,984 for climate strategy, $1,819,810 for solar electric systems and storage, $834,361 for the Heat Pump Deployment Program, and $3,060,871 for the Oregon Rental Home Heat Pump Program. These changes raise program spending caps. Renters and homeowners may benefit if projects are delivered.

More help for survivors and children

For 2025–2027, the state deposits $6,050,000 into the Domestic and Sexual Violence Services Fund. It deposits $3,300,000 into the Children’s Advocacy Center Fund. It also adds $1,274,557 to the Crime Victim and Survivor Services Division. These funds support services for survivors and children.

More money for boating and invasives

For 2025–2027, the State Marine Board can spend $216,000 more from fees and receipts to improve waterway access facilities. It can also spend $832,182 more for aquatic invasive species prevention and monitoring. These funds support access upgrades and invasive species control.

More money for public defense and parole

For 2025–2027, the Oregon Public Defense Commission gets $323,866 for its Executive Division, $1,508,175 more for trial representation, and $2,131,986 for state trial attorneys. The law also provides $319,148 to the State Board of Parole and Post‑Prison Supervision for contested parole and post‑prison violation hearings. This funding supports defense capacity and contested hearings.

More money for state courts

For 2025–2027, the Judicial Department gets $3,277,526 more in General Fund for operations. The law also adds $6,940,350 in General Fund for the State Court Facilities and Security Account to replace reduced fee revenue. This supports court operations, buildings, and security during the biennium.

OLCC warehouse IT upgrade

The Oregon Liquor and Cannabis Commission gets $4,783,827 for a warehouse management IT project. The money supports agency logistics through June 30, 2027.

PERS modernization and staffing funds

PERS gets funding to modernize systems. $644,301 supports program office staffing. $1,336,500 pays for consulting on the ORION system. $938,000 funds data cleaning to stabilize legacy systems. These changes apply through June 30, 2027.

Small boosts for justice agencies

The law adds $10,337,250 to the Department of Justice for education and protection work under state law. The Oregon Youth Authority gets $40,031 more for program support. The Criminal Justice Commission gets $87,842 for contract human resources. These changes apply through June 30, 2027.

Small increase for state parks financing

State Parks receives $274,590 more from the General Fund in 2025-2027 for debt service. The department can also spend $35,000 more from fees for bond issuance costs. This helps park financing and services.

State lands and ocean science funds

For 2025–2027, the Department of State Lands can spend $2,002,800 more in federal money to buy land for the South Slough Reserve. It can also spend $300,000 more from the Oregon Ocean Science Fund for contract services. These funds support land acquisition and ocean science work.

Support for county horse racing

The state provides $5 million to support horse racing at county fairgrounds. Crook, Harney, Josephine, Tillamook, and Union counties each receive $1 million. The money helps local events and fairground infrastructure in those counties.

Upgrades to state IT systems

The state funds upgrades to core IT. $1,173,279 supports a transition to an independent productivity IT system. $7.7 million covers higher costs for virtualization software at the State Data Center. $750,000 supports the Workday Oregon payroll project. These changes apply in 2025–2027.

Water resources admin and rights funding

For 2025–2027, the Water Resources Department gets $391,747 more in General Fund for administration and $472,502 more for water rights and adjudications. The law also raises non‑General Fund spending limits by $1,000,000 for the director’s office, $19,643 for field services, and $8,002 for admin services. These changes support water management and adjudication work.

Youth Authority IT project management funds

Oregon Youth Authority receives $335,138 in 2025-2027 for IT project management. This supports agency technology work. It does not change household taxes or benefits.

Airport upgrades in Salem and Eugene

The state funds airport upgrades in Salem and Eugene for 2025–2027. Salem gets up to $1.35 million for McNary Field resiliency, emergency capability, and terminal planning. Eugene gets $1 million to replace and move the Gate A6 boarding bridge. These projects support safer, more reliable airport operations for travelers.

Funds for local fire stations

Local fire service facilities get help in 2025–2027. Banks Fire District #13 receives $173,000 for access and safety improvements at Fire Station #14. Central Oregon Coast Fire and Rescue can get up to $1.1 million in lottery bonds to buy a fire hall.

Grants for community and health centers

The law funds several community and health facilities. Up to $4 million in lottery bonds goes to the Native American Youth and Family Center for roof and facility upgrades. ABC House gets $1 million to expand. Consejo Hispano gets up to $1.75 million for Casa Mariposa. Williams & Russell CDC gets up to $11.5 million for a business hub. Clackamas County gets up to $5 million for a recovery campus, and Glide Revitalization gets $450,000 for a community resource center.

Help for storm recovery and power

The law provides $840,000 to rebuild a critical electric distribution line in the Blue Mountain Translator District. It also gives the City of Detroit $100,000 for recovery from the December 16–17, 2025 windstorm. These funds support local power service and storm recovery during the 2025–2027 budget period.

More DHS funds for shared services

In 2025-2027, DHS gets $10,707,792 more from the General Fund for state assessments and enterprise costs. DHS can also spend $2,829,021 more from fees and certain federal funds for shared services, plus $65,151 more for assessments. Federal spending authority for central services rises by $143,837. These changes support agency operations.

More grants for small-town projects

For 2025–2027, the state raises the Regional Infrastructure Fund grant limit by $10 million for local and tribal governments under 25,000 people. The law also sets a $14,531,000 cap on the Business Development Department’s debt‑service receipts through June 30, 2027. The cap is an internal limit and does not change household costs.

More money for wildfire staffing

The state adds $6 million for the 2025–2027 biennium to fund wildfire season staffing grants through the State Fire Marshal. This supports staffing during wildfire season. It does not change household taxes or benefits.

Next Generation 9-1-1 upgrades funded

For 2025-2027, the state raises the spending cap by $5.3 million for the 9-1-1 Emergency Program. This funds Next Generation 9-1-1 upgrades. The change supports faster, more reliable emergency calls statewide.

ODOT admin boosts and crash data upgrade

For 2025–2027, ODOT can spend more on administration and project support. Admin limits rise by $463,336 and $750,000, and project delivery by $242,725. The state also lets ODOT use $1,108,198 in federal grant funds to replace the crash data system.

Public defense and parole operations funded

The law creates a Resource Counsel Division at the Public Defense Commission with $3,152,704 for 2025–2027. It adds $319,148 for contested parole and post‑prison violation hearings. It also adds $391,820 to the Public Defense Commission’s administrative services. These changes support justice system operations.

More funding for DHS administration

DHS central services get $5,161,232 more from the General Fund for 2025–2027. The department can also spend $139,235 more from fees and other receipts. This helps keep agency operations and support services running.

More help for refugee families

DHS self‑sufficiency programs get $2,000,000 from the General Fund for refugee assistance in 2025–2027. The money supports services that help refugees reach stability and work.

More support for seniors and disabilities

DHS programs for aging and people with disabilities get $2,851,345 more from the General Fund. The federal spending cap rises by $2,206,117. These changes apply in 2025–2027. The money supports services for seniors and people with disabilities.

Small boosts for OHA health and admin

For 2025–2027, OHA gets added funding and higher spending caps for public health and agency operations. Examples include $2,490,000 more for public health and $1,458,137 more for statewide assessments. Federal caps rise by $7,197,978 for assessments and $602,563 for enterprise costs. It also adds smaller increases for analytics, central and shared services, and fee‑funded admin work. These changes help OHA keep core programs and data work running.

Small increase for child welfare operations

DHS can spend $53,390 more from fees and other receipts for child welfare in 2025–2027. This is a minor increase to support child welfare operations.

Lottery bonds for three housing projects

The state allows up to $1,400,000 for Cathedral Park Cohousing, $3,000,000 for rural modular mass timber workforce housing, and $2,500,000 for the Whale Watch affordable housing project. These lottery bond grants apply in the biennium ending June 30, 2027.

BOLI services and supplies funding

The Bureau of Labor and Industries’ spending cap rises by $74,380 for services and supplies. This funding applies through June 30, 2027.

Grant for Riddle Elementary schoolyard

The law provides $550,000 from the General Fund for Riddle School District 70 to improve the Riddle Elementary schoolyard. The funding is for the biennium ending June 30, 2027. Families in the district get improved school facilities.

More money for K–12 schools

The state adds $7.18 million to the State School Fund for 2025–2027. It also provides $468,750 to modernize how the State School Fund is managed. These changes support K–12 school budgets and operations.

More support for farm market access

The Agriculture Department can spend $372,490 more in 2025–2027 for a Japanese beetle market access program. This supports work that helps farms keep access to markets.

Lottery bond grant list updated

Beginning July 1, 2025, the state updates its list of maximum lottery bond grants. Examples include City of Beaverton ($3,041,482), OMSI ($5,073,845), Lane County ($14,658,694), and Willamette Falls Trust ($45,436,500). These caps guide project funding in the 2025–2027 budget period.

More authority to pay bond costs

The Oregon Business Development Department can spend $689,078 more in 2025-2027 to cover bond issuance costs. This supports financing of infrastructure projects.

More funding for enterprise services

The state lets Enterprise Goods and Services spend $2.82 million more through June 30, 2027. Publishing and Distribution also gets a $4.2 million increase. Another $4.98 million covers enterprise workload for payroll, procurement, and risk. An extra $50,000 pays bond issuance costs.

More funding for State Library

The State Library gets $141,580 from the General Fund for staff pay. Its spending limit also rises by $95,000 to add a position. These changes apply through June 30, 2027.

More funds for broadband, arts, brownfields

The Oregon Business Development Department can spend $500,125 more on broadband technical help. It also has $2 million more for arts-related grants and projects. The Brownfield Properties Revitalization Fund gets a $5 million increase. These changes apply in the biennium ending June 30, 2027.

More money to pay lottery bonds

The state raises the spending limit for lottery bond debt service by $2,246,549 for 2025–2027. This gives more authority to make debt payments from the Economic Development Fund.

Secretary of State adds staff

The Secretary of State can spend more to add and adjust staff. $319,536 funds classification changes in Administrative Services. $109,534 adds a position in the Audits Division, and $271,046 adds staff in the Corporation Division. $456,397 funds records digitization. $134,813 supports a new position. These changes apply through June 30, 2027.

More money for housing infrastructure

Spending from the Housing Infrastructure Project Fund increases by $9,999,999 for the biennium ending June 30, 2027. This adds money for eligible housing infrastructure costs during that budget period.

Caps on college bond and debt costs

The law caps Higher Education Coordinating Commission bond issuance expense payments at $4,607,147 for the biennium ending June 30, 2027. It also sets a $240,000 cap for a specific category of HECC debt service in that biennium. These limits manage financing costs and do not change student eligibility.

Funds to run new business program

The state adds $167,011 and $1,142,010 from lottery moneys for the biennium ending June 30, 2027. The funds support operations and business, innovation, and trade work to implement Enrolled Senate Bill 1507. This pays to run the new program activities.

Small boost to tax law implementation

The law adds $58,534 to the Department of Revenue’s Personal Tax and Compliance Division for the biennium ending June 30, 2027 to implement Enrolled Senate Bill 1507 (2026). It also raises the division’s spending cap by $1,473 for the same work. These are small administrative funds and do not change taxpayer rules directly.

Corrections operations and health funding cut

The Department of Corrections gets $1,033,627 less General Fund money for 2025-2027. The cut applies to operations and health services. This is an internal budget reduction.

Court and public defense funding trims

The law trims court and public defense budgets in 2025–2027. It cuts General Fund support for mandated payments, debt service, court technology, and third‑party debt collection (about $2.95 million total). It also lowers spending from court facilities fees by $6.94 million and reduces a public defense fee‑funded limit by $2.90 million. These changes affect agency operations, not court user rights.

DHS administrative budgets trimmed

The law trims DHS administrative budgets for 2025–2027. Central‑services limits drop, including a $7.96 million cut in federal authority and a $0.72 million cut in other funds. It also reduces money for statewide assessments by about $2.0 million across state, federal, and other sources. These are internal funding changes and do not change benefit eligibility.

Fish and Wildlife enforcement funds cut

Fish and Wildlife enforcement resources are reduced in 2025–2027. The law cuts $3.12 million from the department’s enforcement budget and lowers State Police fee‑funded spending for Fish and Wildlife by $3.12 million. Households are affected only indirectly.

Health policy analytics funding reduced

The Oregon Health Authority’s health policy and analytics budget is cut by $652,498 in the 2025–2027 biennium. This reduces funding for data and analysis work. Services for patients do not change under this item.

Judicial pay funding reduced

For 2025-2027, the Judicial Department’s General Fund for judicial compensation drops by $330,064. This lowers money available for judge pay in that budget period.

Public defense funding trimmed for 2025-2027

The law reduces several Oregon Public Defense Commission budgets for 2025-2027. Adult Trial Division funding drops by $1,899,995. Court‑mandated expenses drop by $2,131,986. Fee‑funded spending limits fall by $249,231 for administrative services and by $323,866 for the financial case management system. These are internal budget cuts and may affect service capacity.

Water Resources Department budget cuts

The Water Resources Department’s budget is reduced for 2025–2027. General Fund support for field services, technical services, and the director’s office falls by about $864,000. Non‑General Fund spending limits for water rights and technical services drop by about $1.03 million (including a $1 million rebalance). These are agency capacity changes and do not alter water right rules.

Youth Authority facility and community cuts

For 2025-2027, the Oregon Youth Authority gets $15,909 less for facility programs and $24,122 less for community programs. These are small General Fund cuts.

DOJ civil enforcement spending caps reduced

For 2025-2027, DOJ can spend less from fees and receipts for civil enforcement and related protection and education work. The cap for Civil Enforcement drops by $2,145,360. The cap for protection and education activities drops by $8,191,890. These are agency spending cuts from non‑General Fund sources.

Fund for Student Success cut

The law cuts $7,183,130 from the Fund for Student Success for the biennium ending June 30, 2027. This lowers the State School Fund’s spending authority from that fund. School programs may see smaller allocations from this source.

Grants and broadband infrastructure funding cut

For 2025-2027, several named General Fund grants through the Oregon Business Development Department are reduced by the listed amounts. The Broadband Fund’s infrastructure spending cap also drops by $500,125. These changes lower money available for those projects in this biennium.

Smaller budgets for capital and admin work

The state trims several internal budgets for 2025-2027. Capital improvements drop by $2,819,680. The Department of Revenue’s Electronic Valuation Information System project drops by $2,000,000. The Secretary of State’s Administrative Services General Fund drops by $2,000,000. These are internal cost reductions.

Small debt-service caps for courts and DEQ

For 2025–2027, the Judicial Department has a $70,000 cap on debt‑service spending from fees and receipts. DEQ has a $9,000 cap for debt‑service costs for listed small programs. These are technical limits and do not change household bills.

Victim services shift: state cut, fee boost

For 2025-2027, the state cuts $9.35 million from the Department of Justice Crime Victim and Survivor Services Division. At the same time, DOJ can spend $1,191,525 more from fees and receipts for children’s advocacy and domestic violence and sexual assault services. The change lowers state funding but adds some fee‑backed support.

Water Resources spending caps and support

For 2025–2027, the Water Resources Department can spend up to $459,722 from ARPA state recovery funds to support fee‑based programs. The law also caps debt‑service spending from fees and federal agreements at $1,564,960 for the biennium. These are internal limits and supports, not new household fees.

Disaster recovery: more reimbursements, lower federal cap

Emergency Management can spend $15,791,030 more from fees and receipts on disaster reimbursements in 2025-2027. At the same time, its federal‑funds spending cap for mitigation and recovery falls by $602,043. The change shifts how recovery work is funded but keeps services operating.

Justice funding changes for victims

For 2025–2027, the Justice Department can spend up to $69,791 from ARPA funds for survivor housing and up to $37,302 for community violence prevention. At the same time, the Crime Victim and Survivor Services Division’s spending cap is lowered by $1,274,557. These changes shift how victim and violence programs are funded, with small ARPA-supported amounts and a lower cap elsewhere.

Housing grants shift at land department

Grant funding at the land department shifts for the 2025–2027 biennium. The state cuts $3,500,000 in General Fund grant money, but also deposits $3,500,000 into the Housing Accountability and Production Office Fund. DLCD’s grant spending limit from fees and receipts rises by $4,350,409. Net result: more authority for housing‑related grants, with dollars moved into a dedicated housing fund.

College system planning funds and cuts

The state adds $500,000 for Southern Oregon University planning and $2,500,000 for post‑secondary system resilience in 2025–2027. It also trims HECC by $100,000 and reduces community college bond issuance costs by $15,000. The goal is to support long‑term stability while making small budget cuts.

K–12 funding shifts, more school grants

The State School Fund gets $22,339,096 more from the General Fund and the same amount less from lottery money for 2025–2027. The Student Investment Account can spend $2,120,888 more. The Healthy School Facilities Fund can grant $2,000,000 more. Net result: a funding swap plus some added grants for student services and school buildings.

More OSHA training and enforcement

Oregon OSHA gets $200,000 more for on-site safety training. It also gets $2,606,149 to support enforcement and penalty changes. Workers may see stronger safety checks. Some employers may face higher penalties and compliance costs. These changes apply through June 30, 2027.

Caps on bond issuance costs

For the biennium ending June 30, 2027, the state caps how much can be spent on bond issuance costs. Lottery bond proceeds can pay up to $496,797 for issuance costs. Special governmental payment funds can pay up to $1,400,000. These limits aim to keep more funds available for projects, while restricting administrative spending.

State agency budgets rebalanced for 2025–2027

The law adjusts budgets for the Legislative Branch, the Judicial Branch, and state administration for the biennium ending June 30, 2027. It also adds $26,108 for start-up IT work in Administrative Services and updates Consumer and Business Services funding. These are internal changes and do not create direct payments to households.

BRCA-linked state budget changes

The law lowers the Department of Human Services federal funds limit for state assessments by $7,882,204 for 2025–2027. It also gives $576,134 to the Office of the State Chief Information Officer for budget changes tied to the 2025 federal Budget Reconciliation Act. These are small, targeted adjustments for this budget period.

Housing bond costs and cap set

The state raises bond activity spending by $890,000 and adds $280,201 from the General Fund for bond work through June 30, 2027. It also caps the department’s debt service from its receipts at $72,343,000 for the biennium. These moves cover issuing costs while setting a clear ceiling on debt payments.

Sponsors & Cosponsors

Cosponsors

Ways and Means
Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 102 • No: 29

House vote • 3/6/2026

Third reading. Carried by Sanchez. Passed.

Yes: 38 • No: 17

Senate vote • 3/6/2026

Rules suspended. Third reading. Carried by Lieber. Passed.

Yes: 24 • No: 4

legislature vote • 3/3/2026

Ways and Means: Heard and Reported Out with Amendments

Yes: 40 • No: 8

Actions Timeline

Chapter 129, (2026 Laws): Effective date April 7, 2026.
4/13/2026House
Governor signed.
4/7/2026House
President signed.
3/10/2026Senate
Speaker signed.
3/10/2026House
Rules suspended. Third reading. Carried by Lieber. Passed.
3/6/2026Senate
Rules suspended. Second reading.
3/6/2026Senate
Recommendation: Do pass the A-Eng. bill.
3/6/2026Senate
First reading. Referred to Ways and Means Committee.
3/6/2026Senate
Third reading. Carried by Sanchez. Passed.
3/6/2026House
Second reading.
3/5/2026House
Recommendation: Do pass with amendments and be printed A-Engrossed.
3/4/2026House
Returned to Full Committee.
3/3/2026House
Work Session held.
3/3/2026House
Public Hearing and Work Session held.
3/3/2026House
Assigned to Subcommittee On Capital Construction.
2/9/2026House
Referred to Ways and Means.
2/9/2026House
First reading. Referred to Speaker's desk.
2/9/2026House

Bill Text

Enrolled
3/6/2026
PDF
A-Engrossed
3/4/2026
PDF
House Amendments to Introduced
3/4/2026
PDF
JWM Amendment -2 (Adopted)
3/3/2026
PDF
JWMCC Amendment -2 (Proposed)
3/3/2026
PDF
Introduced
2/6/2026
PDF

Related Bills

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