Oregon lawmakers release $38 billion budget framework amid federal funding uncertainty

Oregon's Legislature has unveiled a budget framework for the 2025-27 biennium, proposing $38 billion in expenditures amid significant uncertainty regarding federal funding, which constitutes about 32% of the state's budget. Co-chairs Sen. Kate Lieber and Rep. Tawna Sanchez highlighted that the proposed budget includes a historic $11.4 billion for the State School Fund, contingent upon the implementation of accountability measures to enhance student outcomes. The budget anticipates potential federal cuts, projecting funding gaps between $2.5 billion and $9.7 billion if reductions occur, which could severely impact essential services. Despite these challenges, the framework shows a projected surplus of $987.5 million, allowing for increased investments in housing, mental health, and education. Lawmakers expressed a commitment to maintaining core services while preparing for possible fiscal adjustments due to federal spending changes. Overall, Oregon is positioned better than many states but remains cautious about the implications of federal budget policies.