Oregon House GOP calls for tax cuts, housing fix. But Democrats hold the cards

Oregon House Republicans on Thursday unveiled their priorities for this year’s legislative session while painting a grim picture of the state’s progress on housing, homelessness and addiction.

In a press conference at the Oregon State Capitol, Republican party leaders blamed high taxes and excessive regulations for increasing costs, driving people out of the state and making it harder to work, live and manage a business.

Republicans said the state needs to do more, spend less and adjust course from Democrat-led policies to address everything from rising grocery prices to the state’s housing shortage and mental health problems.

But the party will face headwinds because Democrats hold a supermajority in both legislative chambers. That means Democrats can pass new taxes without Republican support and handily shoot down Republican legislation.

“I invite our Democrat colleagues to join with us and to do everything we can within our power to lower the cost of living for Oregonians and to consider actual tax cuts,” said House Minority Leader Christine Drazan, R-Canby.

Here’s what House Republicans are planning this year.

Homelessness

Surrounded by fellow House Republicans, Drazan argued that the state is making insufficient progress toward its ongoing homelessness crisis.

Oregon lawmakers have tried to confront this issue by passing multiple bills in recent years with hundreds of millions for maintaining shelters, boosting housing and providing rental assistance. Despite those efforts, Drazan and other Republicans noted that homelessness has increased.

“Housing 3,000 people over the course of three years is not good enough,” said Drazan, a Canby lawmaker who was her party’s nominee for governor in 2022.

Rep. Darcey Edwards, of Banks, said this problem is personal.

“My son is one of the 23,000 Oregonians who are experiencing homelessness, mental health and addiction on our streets,” said Edwards. “In a rare moment of clarity, my son chose to get help he so desperately needed and our family so badly wanted for him.”

Edwards said her son couldn’t get into treatment for three weeks. Eventually, she said he fell back into his struggles with addiction “due to the enabling practices of so-called low-barrier shelters,” which often have minimal to no sobriety or curfew requirements. Edwards argues that “the way we currently treat our neighbors suffering from mental health and addiction is not compassionate, lacks accountability and makes the problem worse.”

To address this, Republicans want to bolster addiction recovery services and hold people who deny services accountable. Edwards said the party wants to audit the effectiveness of the state’s homelessness legislation.

“Oregonians deserve to know if these programs that are costing billions — with a B — are working,” said Edwards. “Whether it’s for our kids walking to school, a family hoping to enjoy a nice meal at a downtown restaurant, or a family like mine that desperately wants to see their son clean and come home, we need to look at our policies and fight for change.”

Housing shortage

Gov. Tina Kotek has made addressing housing a top priority during her tenure, setting a goal of building 36,000 housing units each year, but production is averaging only about half of that during her tenure.

Rep. Vikki Breese-Iverson, the vice chair of the housing and homelessness committee, cited a recent report from the state economist that put Oregon’s housing needs in perspective. The report said Oregon needs more than 100,000 additional homes to fill its housing needs.

“To solve this housing crisis is going to require three things: land, more infrastructure, and streamlined regulations,” said Breese-Iverson, a lawmaker from Prineville.

She said Republicans are proposing policies this session that aim to produce more housing. Though she didn’t mention specifics, she said Republicans want to open land for home building and help cities expand housing infrastructure and their borders while protecting farmland. She said the party also wants to evaluate the state’s housing regulations and determine whether they encourage housing production. Democrats have supported many of the same priorities in recent years, passing spending packages aimed at increasing housing. Among other things, those bills relaxed land-use laws to make way for more housing and included money to build out infrastructure to make way for new homes.

“Oregonians are increasingly frustrated at the lack of housing opportunities,” said Breese-Iverson. “Republicans have solutions to get us out of this crisis. Billions won’t buy our way out. Oregon can’t afford it. Oregonians deserve better.”

Taxes

Republicans blamed unnecessary rules and regulations for driving up the cost of gas, groceries and rent, and said high taxes have hampered the lives of working Oregonians while making it harder for businesses to grow.

Rep. Lucetta Elmer, a McMinnville Republican, said the party wants to eliminate the state’s Corporate Activity Tax and plan to oppose taxes on tips, overtime and income.

“We want you and your family to keep more of what you make,” said Elmer.

Elmer’s comments come as lawmakers discuss a legislative package to boost Oregon’s transportation system, which Democratic leaders have indicated could include new taxes or fees. Roads and bridges across the state are getting old, but the transportation agencies that maintain them are beset by budget deficits, so lawmakers are trying to figure out how to fill the gap.

Elmer said Republicans will oppose new gas taxes and tolling, but Democrats have indicated that new taxes or fees are likely, and the party has the power to pass any taxes they want on a party-line vote.

Drazan said the party will not vote in favor of bills that raise the cost of living, but noted that passing successful legislation requires compromise and working across the aisle.

“We have to hope and believe that our colleagues on the other side of the aisle, that absolutely do have the votes to pass taxes if they choose to, would instead pause, work with us and serve those Oregonians who are saying they cannot afford these proposals today,” said Drazan.

Transgender women in sports

House Republicans also plan to push for policies banning transgender girls from competing in high school athletics.

Drazan said she plans to introduce a bill that would fall in line with the Trump administration’s executive order on Wednesday that imposed such a ban.

“We believe in girls’ sports,” Drazan said Thursday. “And we believe that the voices of those female athletes should have the opportunity to be heard.”

Senate Minority Leader Daniel Bonham, R-The Dalles, has already proposed a bill that would require school districts to ensure that “every athletic competition or extracurricular sport is expressly designated by the biological sex of the students who participate in the competition or sport.”

Republicans have introduced similar bills every year since 2023 but haven’t been granted a hearing.