June 30, 2025
Welcome to the OSU Government Relations Newsletter.
With this communication, we’ll highlight some of the work conducted by the office, updates from the state legislature and congressional delegation, university engagements with elected officials, and other OSU news. The newsletter will be sent at least quarterly. We encourage you to share this newsletter with your colleagues. They can also sign up by using this link.
2025 End of Session Report: Economic Uncertainty Shapes 2025 Legislative Priorities in Oregon
Each legislative session has a different feel and focus. In 2025, the legislative leadership was focused on managing a record number of nearly 3,500 bills, balancing a budget under a time of great financial uncertainty for the state and passage of a transportation package to fund road improvements.
The May 2025 economic forecast, used to shape the state’s next biennial budget, delivered sobering news. For the first time in years, Oregon’s Office of Economic Analysis projected a decline in expected quarterly revenue, with over $700 million less than previously forecast. Additionally, unpredictable market conditions and unresolved questions around federal tariffs have made forecasting especially difficult. This budget uncertainty negatively impacted the fate of most bills that had a fiscal impact.
Still, the revenue outlook for the upcoming biennium remains 12% higher than the last, underscoring the volatility of the current economic landscape. Most of this revenue was used for covering agency continuing service level increases, K-12 State School Fund increase, housing and behavioral health investments, and a larger than normal ending fund balances.
While the passage of a transportation package was a known legislative leadership priority for the session, progression for the bill (HB 2025) was not seen until late into the session. The package was needed to address both a $400M budget gap at Oregon Department of Transportation and cover transportation project cost escalations. Hearings on the package, which Republicans deemed as the largest tax increase in Oregon history, were tense and proceeded with some committee members being replaced or resigning from the committee assigned to hear the bill. While a scaled down version of HB 2025 passed out of committee, it did not have either enough time or support to be brought to a floor vote.
With the federal budget not being finalized before the Oregon Legislature adjourned and continued need for a transportation package, speculation is already swirling around the possibility of a special session to address emerging fiscal concerns.
Investments in Oregon’s Public Universities
The 2025 legislative session concluded with investments in public universities maintained at current service levels (7%) and mostly aligning with the Governor’s Recommended Budget. While these investments fell short of what the public universities had advocated for all session as their necessary base funding, the Legislature faced a particularly tight budget environment shaped by ongoing economic uncertainty and competing statewide priorities.
OSU was able to secure critical investments to support our mission of education, research, and public service across the state. However, key priorities requesting investments in the Carlson College of Veterinary Medicine, the University Innovation Research Fund, early childhood education, and capital projects on OSU campuses fell short. This session underscored the difficult balancing act of maintaining core services while navigating a flat revenue forecast and a “sluggish but stable” economic outlook.
$1,068.8M for the Public University Support Fund. Continued service level funding (+7% from 2023-25) to support the educational and operational expenses at Oregon’s public universities. The 2025-27 allocation represents a smaller increase than requested by the universities and does not fully cover rising operating costs. This number is reflected in the budget model that OSU used in developing our FY 26 budget.
$329.4M for the Oregon Opportunity Grant. Continued service level funding (+7% from 2023-25) to provide tuition support to more than 30,000 Oregon resident students each year. Additionally, HB 3025 updates OOG awarding language to remove outdated and unused methodology, close a gap in financial aid award eligibility for students who are eligible for all other forms of state aid, allow HECC to award financial aid on a scale that better accounts for student course loads, and create the possibility of awarding financial aid for both credit and non-credit certificate programs.
Continued funding for benefits navigators, who assist public university students resolve food insecurity, housing instability, and challenges affording and accessing textbooks, transportation, childcare, among other basic needs. Funding for benefits navigators had not been included in the Governor’s recommended budget, and student advocacy was instrumental this Session in ensuring the investment.
$18.9M for Sports Lottery. The Lottery Funds allocation for each public university to support intercollegiate athletics (+2.9% from 2023-25) received the same percentage distribution formula that has been used since 2019-21: $1.38M for OSU, which reflects a 7.3% distribution from the fund.
$26M for the Oregon Tribal Student Grant. The Oregon Tribal Student Grant pays for most or all public college-related expenses—including tuition, housing, books, and other costs not covered by other grants—for eligible students who are enrolled members of Oregon’s nine federally recognized Tribes.
$120M for capital improvement & renewal. A $20M increase. This CI&R funding is allocated to the seven public universities by HECC using education and general square footage and a density factor. Funding is intended to help maintain existing facilities and manage deferred maintenance backlogs, with a focus on modernization, code compliance, safety, and accessibility.
HECC Budget Note. A budget note directs an agency to take administrative and managerial action related to the agency’s execution of its biennial budget. They are of limited scope, not intended to circumvent, supplant, or replace other substantive or policy measures or law. HECC’s budget contained an unprecedented, lengthy budget note that lumped the complexity of each university’s financial and operational situation into one narrative that does not correctly reflect all seven universities and directs HECC to conduct in consultation with universities a comprehensive review of university spending, efficiency, and revenue strategies to inform future funding models and ensure that public universities can continue to deliver quality education while remaining financially viable.
Investments in Oregon State University and Other Programming
$244.6M for Statewide Public Service Programs (7% increase) to sustain core mission programs and services of OSU Extension Service, Agricultural Experiment Station, and Forest Research Lab. The OSU “Statewides” are a core component of OSU’s land grant mission by integrating state-of-the-art research and community-based education.
$66M for Public University State Programs (7% increase) for 21 public university projects of specific interest to the state of Oregon. The State Programs through which OSU will receive funding include the TallWood Design Institute, Fermentation Science, the Oregon Cybersecurity Center of Excellence, Ocean Vessels Research, Institute for Natural Resources, Oregon Climate Change Research Institute, Oregon Climate Service, the Veterinary Diagnostic Lab, Environmental Justice Mapping Tool, Juniper Removal Program, Engineering Technology Sustaining Funds, and Signature Research.
$410K to study PFAS in biosolids. HB 2947 directs the Extension Service and the College of Agricultural Sciences of Oregon State University to study the distribution and occurrence of perfluoroalkyl and polyfluoroalkyl substances (PFAS) found in biosolids applied to agricultural fields that do not produce crops intended for human consumption.
$48M for Outdoor School. In 2016, voters approved Ballot Measure 99, which allocated 4% of lottery funds towards Outdoor School and designated OSU Extension as the program administrator. The legislature reduced the budget $12M below the 4% voter approved allocation, which will have a direct impact on 5th and 6th graders Outdoor School experience throughout the state.
Behavioral health promotion. SB 920 directs the OSU Extension Service to oversee a project that convenes local committees from across the behavioral health sector to develop a behavioral health promotion plan and facilitate community conversations about mental health and substance abuse. No direct state investment toward this project.
Lumber grading training. SB 1061 requires the director of the OSU Extension Service to establish a lumber grading training pilot program for small woodland and sawmill operators. No direct state investment toward this project.
Farmworker research. HB 2548 funds the Center for Public Service at PSU to conduct, in consultation with OSU, a study examining the labor standards and working experiences of farmworkers in Oregon, and to integrate the study findings with a study conducted by the Legislative Policy and Research Office relating to the labor standards in the agricultural industry.
$200,000 to operate the AgriStress Helpline. Established by the Legislature in the 2023 and administered by OSU Extension. AgriStress is a free, 24/7 crisis hotline administered by OSU’s Extension Service for the state’s agricultural and forestry communities, including farmers, ranchers, fishermen, foresters, and their families.
Legislation Affecting All Public Universities
Name, image, and likeness. HB 3694 modifies Oregon’s NIL statutes to conform with the House v. NCAA settlement agreement by permitting institutions to directly compensate student athletes or prospective student athletes for the use of their name, image, likeness, or athletic reputation. Takes effect on passage.
Sexual misconduct reporting. HB 3731 requires additional data (e.g., allegations of sexual misconduct toward unknown persons; the types of violence reported) and narrative sections to be included by institutions of higher education in their annual report to the HECC and others regarding allegations of sexual misconduct and violence on the campus of the institution.
Resident tuition for asylum seekers. HB 2586 adds “asylum seeker” to the list of noncitizens who qualify for an exemption from nonresident tuition and fees at public universities. This action builds on previous legislation that granted resident tuition to certain immigrant groups, including refugees and special immigrant visa holders.
Veterans’ tuition benefits. HB 3920 modifies the Veterans’ Dependent Tuition Waiver, available for dependents of disabled or deceased service members and Purple Heart recipients. It raises the age by which a dependent child can apply for the waiver from 23 to 31, removes the requirement that qualified students apply for a master’s degree within 12 months of receiving a baccalaureate degree to receive a tuition waiver for a master’s degree, and allows an exemption to the age limit for anyone qualifying for the federal Survivors’ and Dependents’ Educational Assistance program. Also, HB 798 provides out-of-state members of the Oregon National Guard with in-state tuition and other higher education benefits.
Other Investments of Interest
$4M for Osborn Aquatic Center. The Corvallis School District will receive the funds for the Center’s structural rehabilitation project. While the Aquatic Center has been closed, many programs and classes have been utilizing OSU facilities.
Investments in housing infrastructure. Among the investments is $4M for Adair Village wastewater infrastructure that will allow for housing expansion into that community.
$15M for the Universal Representation Fund. The URF is a statewide universal representation program to provide certain immigration services including legal services, access to community-based navigators, and referral coordination. OSU students have utilized this program when facing immigration challenges.
$3M in additional funding for Centers of Innovative Excellence grants. These public-private partnerships focus on supporting innovation within emerging or established sectors of importance to the state’s economy. $4.6M for juniper control project. The Legislature expanded a 2023 adopted project by including additional areas and resources for local soil and water conservation districts (SWCD) to control juniper encroachment into watersheds. OSU serves as a technical resource for SWCDs and was funded for our continued work.
For further information, questions, or to flag specific issues or actions of interest, please reach out to Katie.Fast@oregonstate.edu or Katheryn.yetter@oregonstate.edu.
