Oregon legislators are set to gather at the Capitol in Salem from January 13 through January 15 for a series of committee hearings that signal the opening phase of work toward the 2026 legislative session. The three-day slate of meetings is expected to focus heavily on the state’s strained finances, the rising cost of living for residents, and the downstream effects of recent federal policy decisions that have reshaped Oregon’s budget outlook.
Lawmakers say the hearings come at a moment of heightened uncertainty, as the state confronts what legislative leaders describe as economic instability tied to actions taken by the Trump administration. According to legislative officials, federal budget decisions have created a significant gap in Oregon’s financial plan, forcing the Legislature to reassess how it funds essential services ranging from education and health care to food assistance, natural resource management, and public safety.
At the center of the discussions is the Legislature’s constitutional obligation to rebalance the state budget. Legislative leaders say federal actions have left Oregon facing a roughly $900 million shortfall, the result of reduced federal support and increased cost burdens shifted onto states. Cuts to programs such as Medicaid and food assistance are expected to have cascading effects across state agencies and local communities, increasing pressure on services that many Oregonians rely on daily.
Senate President Rob Wagner framed the challenge as one that will require difficult decisions and broad cooperation across government. “It’s critical that the Legislature finds a way to fund the public services Oregonians rely on, including community safety, education, and health care. We have some tough decisions ahead,” Wagner said. He emphasized that lawmakers are weighing a combination of strategies, including closing tax loopholes, reducing inefficiencies in state government, and making targeted investments intended to support workers and stimulate economic growth.
House Speaker Julie Fahey echoed that message, describing the upcoming session as a test of stability and leadership. “This session is about steady governance in an unsteady moment,” Fahey said. “As we prepare for 2026, we’re focused on rebalancing our budget, but also on affordability, stability, and shielding Oregon families from harmful federal policies.”
The committee hearings scheduled throughout the week are designed not only to examine the immediate budget crisis, but also to preview legislative concepts that could be introduced when lawmakers formally convene. Many of those proposals are aimed at easing cost pressures on households and insulating the state from federal actions that lawmakers believe could expose residents to additional risk.
Education, health care, transportation, housing, energy, natural resources, and public safety are all slated for extensive review. Committees will hear briefings from state agencies, policy experts, and legislative staff on topics that range from tax policy and economic development to wildfire resilience and behavioral health workforce shortages. Transportation funding and infrastructure maintenance, long-standing challenges in Oregon, are also expected to receive close scrutiny as lawmakers consider the long-term consequences of deferred investments.
Several hearings will focus on affordability issues, including housing supply, consumer lending practices, and insurance availability, particularly in wildfire-prone areas. Others will examine climate and energy policy, data center growth, and the potential impacts of federal environmental and economic directives on Oregon’s economy and communities.
Legislative leaders say the scope of the hearings reflects the breadth of challenges facing the state. Rising costs for housing, food, and health care have strained household budgets, while uncertainty at the federal level has complicated long-term planning for state agencies. By convening a wide range of committees early in the year, lawmakers aim to build a shared understanding of the fiscal landscape before drafting legislation and finalizing budget proposals.
The hearings also underscore the Legislature’s intent to assert a degree of independence from federal policy shifts. Lawmakers have indicated that protecting core state values and maintaining continuity in essential services will be a central theme as Oregon moves toward the 2026 session. That approach includes examining ways to buffer the state against future federal funding disruptions and policy changes that could affect vulnerable populations.
All scheduled meetings are open to the public and will be held at the Oregon Capitol, with options for in-person attendance as well as live streaming and recorded playback through the Oregon Legislative Information System. While agendas are subject to change, legislative leaders say transparency and public engagement remain priorities as the state navigates what they describe as one of its most complex budget environments in recent years.
As committees convene over the three days, the discussions are expected to set the tone for months of legislative work ahead. With fiscal pressures mounting and federal policy uncertainty lingering, Oregon lawmakers are signaling that the path to the 2026 session will be shaped by hard choices, competing priorities, and an emphasis on maintaining stability for residents across the state.