As the new year approaches, Oregon residents, especially in coastal areas like Lincoln County, face new state laws taking effect January 1, 2026, plus major uncertainty over transportation funding after a successful petition drive.

The 2025 legislative session produced hundreds of new measures, many focused on worker protections, consumer rights, and public safety. These changes, signed into law by Gov. Tina Kotek, have drawn praise from supporters for addressing wage theft, labor disputes, and everyday issues but criticism from others who see them as expanding government reach amid rising living costs.

Key statewide changes include:

• Paycheck transparency requirements: Employers must provide new hires with a written explanation of earnings and deduction codes on pay statements, with annual updates required.
• Unemployment benefits for striking workers: Oregon becomes one of the first states to allow eligible workers to access limited unemployment insurance during certain strikes — after a two-week waiting period, up to a maximum of 10 weeks. Critics argue this could alter bargaining dynamics and add costs to the unemployment system.
• Expanded paid sick time uses: Employees can now use accrued paid sick leave to donate blood through accredited voluntary programs.
• Construction wage protections: Project owners and general contractors face joint liability for unpaid wages owed by subcontractors, aiming to curb wage theft but raising compliance concerns for businesses.

Other measures include stricter rules on disclosing private information (with new criminal penalties in some cases), bans on age-related questions in initial hiring processes, and prohibitions on medical providers reporting debt to credit agencies.

For Lincoln County, which relies heavily on tourism, fishing, and rural infrastructure, these statewide rules will apply without major local overrides. County officials continue standard administration of land use, building, and environmental rules through existing departments.

However, the most prominent development overshadowing 2026 is the referendum on a major transportation funding package. In a special session, lawmakers passed House Bill 3991, which Gov. Kotek signed into law in November 2025. The measure aimed to generate about $4.3 billion over a decade through increases including a 6-cent hike to the state gas tax (from 40 to 46 cents per gallon), higher vehicle registration and title fees, and a temporary doubling of the statewide transit payroll tax.

Opponents, including Republican lawmakers and groups like No Tax Oregon, described the changes as burdensome for families already facing high costs for fuel, groceries, and housing — especially in rural and coastal regions where driving distances are longer and alternatives limited. They launched a petition drive that gathered nearly 200,000 signatures (well above the required threshold of about 78,000) by mid-December 2025.

As a result, the targeted tax and fee increases — projected to cost many drivers hundreds of dollars annually — are now suspended pending verification by the Secretary of State’s office (expected by late January 2026). If certified, the question will go before voters in the November 2026 general election, where a “no” vote would repeal the increases.

Supporters of the original bill, including Gov. Kotek, warned that blocking the revenue could force service cuts, delayed road maintenance, and potential layoffs at the Oregon Department of Transportation (ODOT), which the package was intended to avert. Critics counter that ODOT should prioritize efficiencies and existing funds rather than new taxes.

This referendum reflects broader frustration among many Oregonians with state government’s approach to taxation and spending, as evidenced by the rapid signature collection and widespread participation in events like “Sign Across Oregon.” Whether the increases ultimately take effect will be decided at the ballot box next fall, leaving residents and businesses in a holding pattern as 2026 begins.

For the full text of new laws, check the Oregon Legislative Information System or agency resources like the Bureau of Labor and Industries. Residents are encouraged to stay informed on the referendum verification process through the Secretary of State’s office.