Gov. Tina Kotek directed Oregon agency leaders to begin "immediate cost-saving measures and prepare for further reductions" Sept. 16 in response to a projected shortfall in the state budget.

"President Trump’s reckless tariffs and chaotic approach to economic policy and the passage of H.R. 1 , with devastating consequences for the Oregon Health Plan and SNAP, have created an approximately one percent ($372.7 million) shortfall in Oregon’s budget," Kotek said in a statement referencing's Trump's One, Big Beautiful Bill that Congress passed in July.

Agency directors received a letter from the governor directing them to slow spending, prepare for reductions and reduce out-of-state travel.

"Agencies should also begin preparing for additional reductions in the 2026 legislative session,"

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