At the State Level

Big cuts to state services likely in the next six years

The Co-Chairs of the Legislature’s budget writing committee are asking all state agencies to provide a 5 percent reduction list by November 3rd. They are also asking for a list of any programs that were established or expanded since 2021. These lists will help the legislature determine how best to cut nearly $915 million from the recently adopted 2025-27 biennial state budget. This is roughly 2 percent of the state’s General Fund budget.

The cuts are a result of the tax cuts made in H.R. 1, when passed by the U.S. Congress this summer. Because Oregon’s tax code is tied to the federal tax code, any cuts made at the federal level will reduce the taxable income for state taxes. Historically, the Oregon Legislature has disconnected the state tax code from the federal tax code on a rolling basis. The Legislature will need to pass legislation in order for this to happen. So far, there has been no indication that the Legislature will convene a special session before the February 2026 legislative session.

The state will experience further federal cuts in Medicaid and SNAP in the next three biennia ranging from roughly $1 billion to $8.1 billion. The Legislature will consider a combination of actions that may include making cuts, accessing rainy funds, using ending fund balances, or raising revenue.
 

 

At the Federal Level

Government Shutdown

After 16 days and ten failed Senate votes on a short-term funding measure, Congress and the White House have made no progress to end the government shutdown. The proposed measure would have reopened and funded the government through November 21.

In an effort to increase pressure on Democrats, the White House laid off thousands of federal workers last Friday and has warned of additional layoffs if the shutdown continues. President Trump also announced plans to introduce a new rescission package tomorrow, should the stalemate persist.

While things could change at any time, D.C. insiders expect the shutdown could continue through October, possibly into November.

Take Action: The only way to end the government shutdown is for Congress and the White House to reach a bipartisan agreement to reopen the government and allow nonprofits to continue their essential work.

You can take action:

  • Share Your Story: Use the National Council of Nonprofit’s storytelling tool to share real examples of how the government shutdown is harming nonprofits and their communities. Sharing these stories is one of the most effective ways to make your voice heard.
  • Contact Your Members of Congress: Use the National Council of Nonprofit’s email template to send a message directly to your Senators and Representatives, urging them to work across the aisle to reopen the government.