Reflections on the 2026 Legislative Session
The Oregon Legislature wrapped up the 2026 legislative session on March 6 after a fast-paced 35 days in Salem. While short sessions are designed to focus on budget adjustments and targeted policy fixes, this year’s session carried larger conversations about economic competitiveness, tax policy, and the future of industries that support jobs across the state.
Heading into the session, Oregon faced real economic headwinds. The state had lost more than 25,000 jobs over the past year, many of them in the manufacturing sector that provides accessible, family-wage jobs across our communities. At the same time, policymakers were debating how best to strengthen Oregon’s economic outlook while responding to fiscal pressures, federal policy changes, and questions about the state’s business climate.
For the Chamber, our legislative priorities served as a guiding light throughout the session. Developed in collaboration with our members and Board of Directors, these priorities reflect the policies we believe are essential to supporting a strong regional economy. They helped focus our advocacy as we tracked legislation affecting economic development, taxation, agriculture, liability law, and regional economic drivers that matter to businesses across Washington County.
Those priorities also shaped how we evaluated the outcomes of this year’s session and the work that remains ahead.
The Conversation About Jobs and Competitiveness
The Washington County Chamber’s top legislative priority this session was the Oregon JOBS Act (SB 1586), introduced by Senator Janeen Sollman. We applaud Senator Sollman for bringing this legislation forward and for her leadership in starting an important conversation about Oregon’s economic competitiveness.
The bill was designed to strengthen Oregon’s position in advanced manufacturing and technology industries that are central to Washington County’s economy. It included provisions intended to expand research and development incentives, encourage investment in manufacturing equipment, and address Oregon’s shortage of industrial land available for future development. Washington County sits at the center of Oregon’s high-tech sector, and the ability to support continued growth in this industry is critical to our region’s economic future.
Unfortunately, the conversation around the bill became clouded by widespread misinformation in the community about its intent and potential impacts. Despite strong support from business leaders, economic development partners, and organizations like the Washington County Chamber, the bill was significantly scaled back during the legislative process.
In the end, Senator Sollman made the difficult decision to pull the bill, and SB 1586 did not advance out of committee. While the outcome was disappointing, the bill sparked an important statewide discussion about Oregon’s ability to compete for advanced manufacturing investment and the need to address the state’s limited supply of industrial land.
Those issues remain unresolved and will continue to shape conversations about Oregon’s economic future.
Lawmakers also considered economic development legislation introduced at the request of Governor Tina Kotek as part of her Oregon Prosperity Roadmap. That bill, HB 4084, did pass and includes funding for industrial site readiness, limited fast-track permitting in certain circumstances, and improvements to the enterprise zone program. While these steps move the conversation forward, many of the bill’s original concepts were narrowed during the legislative process, limiting the overall impact.
Even so, the discussion around economic competitiveness, industrial land supply, and job growth will continue. These issues are too important to ignore and will almost certainly return in future sessions.
Protecting Regional Economic Drivers
The Chamber also closely followed SB 1501, legislation that directs certain income tax revenues generated by the Portland Trail Blazers and related events toward the modernization of the Moda Center.
SB 1501 successfully passed the Legislature and is on the governor’s desk for signature. The improvements supported through this bill are intended to help ensure the Trail Blazers remain in Portland while preserving a major regional economic driver.
Major venues like the Moda Center support thousands of jobs and generate economic activity that benefits businesses across the region. Restaurants, hotels, retail shops, and service providers throughout the Portland metropolitan area all benefit when large events bring visitors to our region.
Keeping Family Farms Viable
Agriculture remains an important part of Washington County’s economy, and the Chamber monitored legislation affecting farm stands and on farm retail sales.
For many family farms, these sales provide a critical revenue stream that helps offset rising costs for labor, equipment, and transportation. Direct sales also help farmers manage the volatility of crop markets, where prices can shift quickly and unsold produce can lose value rapidly.
While the final bill did not make sweeping changes, HB 4153 passed and did provide additional clarification that farmers and local jurisdictions had been seeking. Those clarifications should help reduce confusion and provide greater certainty for farms that rely on direct sales to survive.
Preventing Unnecessary Litigation
A positive outcome for businesses involved legislation related to Oregon’s Unlawful Trade Practices Act (UPTA). HB 4098 would have expanded UPTA in ways that increased litigation risk for businesses, but the bill did not advance this session. Preventing that expansion was an important outcome for the business community.
Maintaining a balanced legal framework helps ensure businesses can operate with confidence and without facing unnecessary legal exposure that can drive up costs and discourage investment.
Tax Policy and Oregon’s Competitive Position
Tax policy was one of the most consequential issues addressed during the session. Lawmakers passed SB 1507, which partially disconnects Oregon’s tax code from federal tax changes enacted through H.R.1.
One significant change involves bonus depreciation. Businesses will no longer be able to claim the full federal depreciation benefit for state tax purposes, which reduces a tax incentive designed to encourage companies to invest in equipment and capital improvements.
The policy change is expected to generate roughly $300 million in additional revenue for the state. At the same time, many in the business community have raised concerns about how this shift may affect Oregon’s competitiveness compared with other states working aggressively to attract investment and job creation.
Lawmakers also approved changes to Oregon’s transient lodging tax policies, including HB 4134, which increases the statewide lodging tax to support wildlife conservation programs, and HB 4148, which adjusts how local transient lodging tax revenues are allocated between tourism promotion and other community priorities.
Transportation Funding Uncertainty
Transportation funding remained one of the most challenging and unresolved issues of the legislative session. A major statewide transportation package aimed at addressing long-term infrastructure needs failed to advance, leaving policymakers searching for short-term solutions to stabilize funding for the Oregon Department of Transportation (ODOT).
Lawmakers ultimately passed SB 1601, which reallocates existing transportation funding to support operations and maintenance and help prevent layoffs within ODOT. In addition, SB 1599 moves a statewide transportation funding referral to the May 2026 primary election, where voters will weigh in on the future of transportation funding in Oregon.
For Washington County businesses, the outcome of this debate is significant. Reliable transportation infrastructure supports freight movement, commuting, and economic development across our region. The Chamber will continue to monitor this issue closely as the policy conversation continues and voters consider the next steps.
Looking Ahead
Many of the issues discussed this year, including economic development, tax policy, regulatory reform, and transportation funding, will likely return when lawmakers convene again in 2027.
For the Washington County Chamber of Commerce, the work does not end when the Legislature adjourns. We represent nearly 800 businesses and more than 75,000 jobs across Washington County, and we take our role seriously as a voice for the employers and entrepreneurs who power our local economy. The Chamber will continue engaging with policymakers, building coalitions, and advocating for policies that strengthen Oregon’s competitiveness and create opportunity for the businesses and families who call Washington County home.
The 2026 session was brief, but the questions it raised about Oregon’s economic future are significant. Those conversations will continue, and the Chamber will remain actively engaged in shaping the path forward.
Contact:
Jen Little, Vice President of Public Affairs
jenl@wcchamber.org
503-726-2149