Oregon transit agencies have announced they are reducing service due to the funding uncertainty caused by an ongoing legal dispute between Oregon and the Federal Transit Administration.

This comes after the FTA revised its master agreement for rural transit grants, called Program 5311, on April 25. The new contract required grant recipients to comply with federal immigration enforcement actions.

Oregon’s governor declined to sign the agreement, saying it violated state laws. State attorney general Dan Rayfield joined a lawsuit with 19 other state attorneys general against the federal Department of Transportation over the withholding of transit funding, saying it is beyond the agency’s jurisdiction.

On June 19, a court issued a temporary injunction which unfroze some funding while the case proceeds.

The Oregon Department of Transportation said they have begun issuing federal funding reimbursements for rural transit grants since the injunction went into effect.

“ODOT continues to process Federal Transit Administration grants, allowing our state to receive the federal funding it has been expecting,” the agency said in an emailed statement.

ODOT’s public transportation division was impacted by the 483 layoffs announced last week and said this might lead to longer processing times for the backlog of federal funding reimbursements.

Kane Lester, transportation program manager for Community Connection of Northeast Oregon, said the agency has laid off two staff members and reduced schedules in Union, Baker and Wallowa counties while the case proceeds, unable to absorb the financial risk while awaiting the court case.

“We hope this gets done so we can ramp our services back up again,” Lester said. “However, we’re kind of taking a more... conservative approach right now just to keep services going.”

Community Connection reduced scheduled trips in La Grande by 20%, and up to 40% in Baker and Wallowa counties. Patrick Hemann, Union County transit manager, said they tried to minimize the impact on riders by cutting the trips with the least ridership.

 “This was the best solution where while we’re reducing services [but] we’re not taking away from our client’s needs,” Hemann said.

Rogue Valley Transit District in Medford laid off 80 employees and expects to cut services by 60% over the next few months.

Coos County Area Transportation District has asked riders about potential service cuts starting August 1 as a result of the funding uncertainty, but have not announced any yet.

In Oregon, there are 36 agencies that receive federal funding for rural transportation through the FTA’s 5311 program. Not all are reducing service due to the funding uncertainty.

Kayak Public Transit, operated by the Confederated Tribes of the Umatilla Indian Reservation, is one of the largest transit agencies in Eastern Oregon. Kayak’s Public Transit General Manager, Shawn Brown, said they don’t plan to reduce services or lay off staff.

“We have more flexibility in funding,” said Brown, due to the agency’s affiliation with the tribes. But Brown expects Kayak riders will still be affected by the funding uncertainty because “transit is interconnected.” Kayak operates intercity bus routes to areas where services are being reduced, such as La Grande.

Lane Transit District receives funding from the 5311 program but said they are not planning to reduce schedules. Instead, they will be expanding service with a new downtown Eugene circulator bus beginning in September.

The state’s largest transit agency, TriMet, does not receive 5311 rural transit funding but has raised alarms over possible service reductions after the Oregon legislature failed to pass a transportation funding package last session.

News Source : https://www.opb.org/article/2025/07/10/oregon-counties-lose-transit-options-as-federal-funding-remains-uncertain/