Oregon
Oregon Democrats unveil plan to close Trump tax ‘loopholes’, reduce budget deficit
Two key Oregon Democrats on Monday unveiled a plan to increase state revenue by dropping several state tax breaks copied from President Donald Trump’s sprawling tax-and-spending law passed last year.
The plan, put forward by Sen. Anthony Broadman of Bend and Rep. Nancy Nathanson of Eugene, would bring in $342 million in the current biennium by disconnecting Oregon from three tax breaks in Trump’s signature One Big Beautiful Bill Act. The proposal comes as lawmakers prepare to face significant declines in state tax revenue in the coming years, along with higher administrative costs, due to policies in the federal law.
The three tax breaks Nathanson and Broadman want to cancel, out of more than 100 in the federal law, apply to interest on some car loans, profits from certain stock sales and upfront write-offs for business machinery and equipment, known as bonus depreciation.
Because Oregon generally duplicates federal tax law, including by creating state versions of federal tax breaks, the tax cuts contained in Trump’s tax law are expected to cost Oregon nearly $900 million in tax revenue during the current biennium, according to state estimates. Nathanson and Broadman’s proposal would preserve a fraction of that amount in state tax revenue this biennium, because it would leave in place most state tax breaks copied from the federal law.
To offset some of the potential harm to businesses and Oregonians who are struggling financially, Broadman and Nathanson have also proposed funding $25 million in tax breaks for businesses that grow jobs in Oregon and $26 million to substantially increase the size of the state’s earned income tax credit for low-income workers.
In total, the bill would net the state an estimated $291 million in the current biennium, Nathanson and Broadman said.
The additional tax revenue the state would collect by cancelling the three new state tax breaks would be used “to protect programs and services for Oregonians and to directly help Oregonians, whether it’s individuals or businesses creating jobs,” Nathanson said Monday morning during a press briefing.
Nathanson chairs the House Revenue Committee while Broadman chairs its Senate counterpart.
For months, lawmakers have been preparing to address an expected budget deficit by developing plans to decouple from some federal tax provisions, trim agency budgets and potentially dip into the state’s reserves. The state’s projected two-year budget deficit shrank from $370 million to $63 million in the November revenue forecast. Lawmakers will receive an updated forecast on Wednesday.
Broadman and Nathanson’s bill could generate more revenue for the state in the next five years, in which the state is expected to lose billions of dollars in federal funding, mostly for food assistance programs and Medicaid. The two lawmakers said their proposal would bring in $308 million in the two-year budget period that begins in summer 2027 and $123 million in the following biennium, not including costs of the two expanded tax credits. The state’s current two-year general fund budget is $37.3 billion.
Broadman and Nathanson said they crafted the plan with the intention of closing tax loopholes for businesses that don’t directly benefit Oregonians. Disconnecting from the bonus depreciation provision alone would bring the state $267 million in the current biennium, the Democrats said — far more than disconnecting from the other two tax breaks might.
They pointed out that businesses will still be eligible for the federal bonus depreciation tax benefit and a similar federal provision that allows businesses to deduct a certain amount of the upfront value of purchased assets.
Broadman and Nathanson said they plan to keep Oregon’s version of the research and experimental expenses tax break in Trump’s bill, one of the largest hits to the state’s revenue according to economists, to ensure that Oregon can remain attractive to businesses interested in operating in the state.
Ending the capital gains tax cut for investors in qualified small business stocks would yield an estimated $39 million in income tax revenue for the state this biennium, Nathanson and Broadman said. Killing the state auto loan interest deduction would yield $36 million, they said.
Both Broadman and Nathanson said they are optimistic that the plan could even receive support from Republicans and business groups, who have generally been opposed to Oregon disconnecting from the federal tax law because of the extra administrative burden and because it could impose higher taxes on businesses.
“The business community sees what we are facing with the federal government essentially taking a billion dollars out of the budget,” Broadman said. “I’m optimistic that they’re going to understand that this is necessary to continue to invest in health care, education and public safety.”
However, the group Oregon Business & Industry vowed on Monday afternoon to “vigorously oppose” Democrats’ plan, introduced to the Legislature as Senate Bill 1507.
“We’ve been asking leaders to ‘do no more harm,’ and this would certainly dig our economic hole deeper,” the group’s president and CEO Angela Wilhelms said in a statement. She said lawmakers in particular should not cancel the state’s new business tax break “that would help businesses — especially small to midsized manufacturers — invest more now in their companies and employees.”
Nathanson and Broadman noted that they plan to keep Oregon’s version of the new federal tax break on tips and overtime. Both those are considered politically popular, even though they affect relatively few households and will deliver mostly quite small financial windfalls.
About 213,000 Oregon households received a state earned income tax credit in 2023, the most recent year for which figures are available. That represents about 10% of households that filed state tax returns. The credits, which are refundable, averaged $222 that year. Broadman and Nathanson are proposing to increase the size of the credits, which deliver the biggest benefit to families earning $20,000 to $35,000 a year, by about 45%.
Oregon
Public asked to help find missing 2-year-old Armani Andrews in Portland
PORTLAND, Ore. (KATU) — Oregon officials asked the public to help find a two-year-old boy who went missing from Portland last Wednesday, June 17.
The Oregon Department of Human Services, Child Welfare Division, is asking the public to help find Armani Andrews and call 911 or local law enforcement if they believe they saw him.
Armani is believed to be in danger and is suspected to be in Portland, around any of the following areas: Rose Haven, Multnomah County Central Library, or Southeast Portland around 82nd-103rd.
Armani is a two-year-old Black/mixed race baby. He is about 24 inches tall, he has brown hair, brown eyes, and his weight is unknown.
If contacting Portland Police Bureau about Armani, reference the case number: #PP185430
The report number for Armani with the National Center for Missing and Exploited Children Report is: 2093182
ODHS said in a statement when a child is missing, they may be in significant danger and the department “may need to locate them to assess and support their safety.”
KATU News reached out to ODHS to clarify whether there is a custody aspect to the missing child’s case. The department said they are unable to provide that information.
Armani Andrews with Mother Rashonda Andrews/ODHS photos
You can report suspected child abuse to the Oregon Child Abuse Hotline by calling 1-855-503-SAFE (7233). The toll-free number allows anyone to report abuse of any child or adult to the Oregon Department of Human Services, 24 hours a day, seven days a week and every day of the year.
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KATU News included photographs of Armani to help the public identify and find him.
Oregon
The Cost of the Crackdown: How Trump’s immigration enforcement affects Oregon
PORTLAND, Ore. (KATU) — President Donald Trump campaigned on carrying out what he called the largest deportation operation in American history.
After taking office, his administration quickly ramped up immigration enforcement. Border czar Tom Homan also pledged to focus on so-called sanctuary cities, including Portland. According to the U.S. Department of Homeland Security, more than 675,000 people were deported in 2025, while the agency says more than 2 million people “self-deported.”
READ ALSO | Supreme Court hands Trump immigration wins, but birthright citizenship might be different
In Oregon, state data shows state and local agencies experienced a 265% increase in immigration-related requests from federal authorities last year.
So what does that mean for Oregon’s economy?
The state’s chief economist says the effects are beginning to emerge.
Carl Riccadonna, Oregon’s state economist, said immigration enforcement actions are influencing consumer spending and activity across several key industries, though the state cannot yet quantify the overall impact.
“What we’re seeing in terms of immigration action is playing out in either consumption patterns, which we’ve seen in some communities, or in industrial or sectoral activity,” Riccadonna said. “This does then have implications for how we are reading the overall macroeconomy and putting together that revenue forecast.”
Portland police officers walk outside the U.S. Immigration and Customs Enforcement facility on Thursday, Jan. 8, 2026, in Portland, Ore. (AP Photo/Jenny Kane)
Riccadonna said the effects extend beyond agriculture, an industry that has historically relied on immigrant labor.
“We have certainly, in sector-by-sector analysis, we’re hearing evidence of impacts from immigration in consumption numbers, so retail, groceries, those sorts of things,” Riccadonna said. “There are also significant impacts in the retail sector and leisure and hospitality, restaurants and construction, important legacy industries of Oregon like timber, forestry … and manufacturing has a very large footprint as well.”
While the state is seeing those trends, Riccadonna said economists cannot yet calculate exactly how much immigration enforcement has affected Oregon’s economy.
“We haven’t done an exercise to say, well, this is what the forecast would have been otherwise. We don’t produce counterfactuals … but there’s plenty of anecdotal evidence from the cherry harvest this past summer and stresses elsewhere throughout those specific sectors,” he said.
National data offers additional context.
According to the nonpartisan Congressional Budget Office, the recent immigration surge — which the report says mostly comprises immigrants who were not lawful permanent residents, were not eligible to apply for lawful permanent residency based on their current status, and were not admitted on a temporary basis under the Immigration and Nationality Act — generated approximately $10 billion in state and local tax revenue in 2023. During that same period, governments spent nearly $19 billion on services such as schools, shelters and border security.
A damaged car is seen as law enforcement officials work the scene following reports that federal immigration officers shot and wounded people in Portland, Ore., Thursday, Jan. 8, 2026. (AP Photo/Jenny Kane)
The Congressional Budget Office also projects the immigration surge that began in 2023 will increase the U.S. labor force by approximately 5.8 million people by 2034 and boost the nation’s economic output by nearly $9 trillion over the next decade.
Riccadonna said Oregon expects to gain a clearer picture of the economic effects as more tax and revenue data becomes available.
This story is part of KATU’s “The Cost of the Crackdown” special, which examines how increased immigration enforcement is affecting Oregon, from businesses and workers to the state’s broader economy.
Oregon
Oregon National Guard tests drone to remotely deliver explosive during training
Oregon Army National Guard soldiers tested a new method of clearing battlefield obstacles during annual training this week by using a heavy-lift drone to remotely deliver and detonate a live explosive charge.
The proof-of-concept demonstration took place June 22 and was led by soldiers with Bravo Company, 741st Brigade Engineer Battalion, 41st Infantry Brigade Combat Team.
The exercise focused on using an unmanned aircraft to carry a live Bangalore torpedo — an explosive device designed to clear wire obstacles — allowing engineers to breach barriers while remaining farther from potential enemy threats.
Army engineers are responsible for creating safe routes for friendly forces by clearing obstacles such as concertina wire and minefields. Traditionally, placing explosive charges requires soldiers to move close to enemy positions, increasing their exposure to danger.
During the demonstration, a heavy-lift drone carried the explosive charge to a wire obstacle before remotely detonating it, successfully creating a lane through the barrier.
The project was the result of several months of planning by the battalion’s drone working group under the direction of battalion commander Lt. Col. Eric Zimmerman. The unit partnered with Ashland-based Lorica Technologies, which provided the heavy-lift drone used during the demonstration.
Lt. Col. Zimmerman said recent conflicts have highlighted the importance of adapting new technologies for the battlefield.
“Watching what’s happening in Ukraine and seeing how innovative they’ve been inspires you to get better and think bigger,” Lt. Col. Zimmerman said.
The team conducted multiple tests before the live demonstration, beginning with inert training devices before progressing to live explosives. Officials said the final test successfully delivered and detonated a two-section Bangalore torpedo.
Lt. Col. Zimmerman credited the project’s success to collaboration between battalion leadership and the soldiers responsible for carrying out the mission.
“I’m really proud,” Lt. Col. Zimmerman said. “The Soldiers of Bravo Company took an idea from the battalion staff and applied their expertise to make that idea functional and effective.”
Military officials said the demonstration highlights how the Oregon Army National Guard is incorporating emerging unmanned aircraft technology into engineer operations. Lessons learned from the project are expected to help shape future training and the Army’s continued integration of drones into combat engineering missions.
The Oregon Army National Guard is made up of citizen-soldiers who serve part time while maintaining civilian careers, attending school or raising families. In addition to federal deployments, Guard members respond to state emergencies such as wildfires, floods and winter storms when activated by the governor.
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