Portland's transportation funding crisis worsens as leaders highlight the failure of traditional funding streams to meet current needs. The city council is taking action by directing staff to develop a plan for alternative funding. With state legislative efforts failing to produce a needed transportation funding package, critical projects are at risk without additional financial support. The city's Bureau of Transportation is also facing losses from federal funding cuts tied to prior administration decisions, endangering vital services and infrastructure improvements.
"Portland's transportation system is facing a critical funding crisis, [which has been] compounding year after year...and our traditional funding sources no longer keep up with the needs," Councilor Angelita Morillo said at the July 16 City Council meeting.
The move comes weeks after the Oregon Legislature's 2025 session ended with a whimper, with legislators failing to pass a long-anticipated transportation funding package.
Thanks to President Trump's reconciliation bill, PBOT will also lose out on $38 million in federal funding it was counting on for the Broadway Main Street project.
Councilors asked the Public Works and Budget and Finance service areas to have a 'community-informed' report with potential funding scenarios ready by December.
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