Oregon Legislative Session 2025: Business Impacts You Need to Know

Oregon’s 2025 legislative session is now in the books, and while lawmakers touted “progress,” the results tell a more complicated story for Oregon’s business community. Employers saw some meaningful wins—most notably the repeal of the wildfire maps—but also new mandates, higher costs, and missed opportunities for long-term economic growth.

Wildfire Maps Repealed: A Win for Common-Sense Regulation

One of the biggest successes of the session was the repeal of the wildfire hazard maps created under SB 762 (2021). These maps had placed heavy burdens on homeowners and businesses, from compliance costs to rising insurance premiums. Thanks to strong pushback from property owners and rural communities, SB 83 repealed the maps and replaced them with a more practical approach: model wildfire codes that local governments can choose to adopt.

SB 85 also requires state agencies and insurers to work together on wildfire mitigation strategies tailored to local realities, with a report due in 2026. For businesses and property owners, this means relief from blanket mandates and a clearer path forward for development and investment.

Transportation: No Long-Term Solution in Sight

Perhaps the most pressing—and disappointing—outcome of the session was the failure to deliver a sustainable transportation funding package.

Democrats introduced HB 2025, a $14.6 billion proposal funded by new taxes on gas, car sales, EV miles, and payroll. But the sweeping package stalled before adjournment, leaving ODOT facing layoffs and TriMet preparing to reduce service.

Republicans opposed the last-minute approach, offering a scaled-down alternative they argued was more accountable and realistic. In the end, a modest version of HB 2025 passed committee, raising $11.7 billion over 10 years, but the lack of bipartisan support highlights the deep divide.

The Governor has called a special session for August 29 to revisit the issue, but key concerns remain:

• ODOT accountability on project timelines and budgets
• Freight cost allocation and how it will impact businesses
• Unfinished 2017 projects, which should be resolved before new ones begin
• Payroll tax increases, which directly reduce workers’ take-home pay

For employers and communities, the absence of a stable funding solution means ongoing uncertainty around infrastructure and transportation costs.

Labor Policy: Higher Costs, Greater Risk

Labor policy was another area where businesses saw new burdens. SB 916 extended unemployment benefits to striking workers, a change that may prolong labor disputes and increase costs for employers. At the same time, lawmakers expanded wage liability, making general contractors and even property owners responsible for subcontractor payroll disputes.

These changes add financial risk, legal exposure, and new administrative challenges for Oregon employers.

Utility Regulation: More Transparency, More Complexity

Utilities will now be required to fully itemize their rate-increase requests. While transparency sounds positive, the new requirements may actually slow responsiveness, add red tape, and create uncertainty around financing for future projects. For businesses, that means potential downstream cost increases.

Key Takeaways for Oregon Businesses

• Wildfire Regulation: Repeal of hazard maps brings clarity, local control, and relief for property owners.
• Transportation: No long-term solution yet, leaving infrastructure and business costs in limbo.
• Labor: New policies increase employer costs and risk.
• Utilities: Transparency comes with added complexity and potential cost impacts.

Final Word

The 2025 Oregon legislative session showed that when communities and businesses speak up, positive change is possible—as with the repeal of the wildfire maps. But the failure to resolve transportation funding is a significant gap that will impact businesses across Oregon.

Moving forward, employers should stay engaged and advocate for policies that support economic growth, accountability, and common-sense regulation. The challenges are real, but so are the opportunities when Oregon’s business community makes its voice heard.