Oregon Gov. Kotek tells state agencies to stop travel, prepare for budget cuts
Gov. Tina Kotek ordered an immediate halt to state employees’ non-essential out-of-state travel and directed agencies to find more ways to cut costs on Tuesday after Oregon’s budget surplus from a few months ago turned into a nearly $375 million shortfall.
In a letter to all state agency directors, Kotek wrote that tariffs and the Republican megalaw passed in July that expands tax cuts and slashes federal funding for Medicaid and food benefits means the $37.3 billion two-year budget lawmakers passed and she signed this summer won’t be sufficient.
“I am directing state agencies to begin immediate cost-saving measures and prepare for further reductions,” she said in a statement. “We will make tough, sensible decisions while protecting the core services Oregonians rely on.”
Along with suspending travel, her letter directs all agencies to prepare for future cuts by slowing spending, such as by holding positions vacant for longer periods, reducing spending on supplies and services and waiting to implement new or expanding programs.
https://washingtonstatestandard.com/2025/09/16/repub/oregon-gov-kotek-tells-state-agencies-to-stop-travel-prepare-for-budget-cuts/