Oregon has less money to spend as economy slows

(MAY 22, 2025) Oregon will have $755 million less to spend in the next two years. Lawmakers now have $37.4 billion. In February, they had expected $38.2 billion.

Why? A new report shows slower growth in the state’s economy. Also, tax collections are lower than expected.

That's because fewer people are working. Business earnings are also down. And Oregon is making less money from international trade. One of the problems is new federal tariffs from President Trump have made trade more difficult.

Governor Tina Kotek plans to focus on housing, homelessness, education, and mental health. Lawmakers may need to reduce funding for some programs. Several advocacy groups are asking to protect child care, housing, and other services for families. Other groups want to reduce the “kicker” tax refunds. These refunds go to taxpayers when the state collects more than expected.

Lawmakers have six weeks to create a new state budget.