With wildfires already burning across the state, Oregon lawmakers approved a measure on Monday they hope will help prepare the state to both fight and prevent future fires.

Advertisement

The measure, House Bill 3940, would tax oral nicotine products and tap the interest on Oregon’s rainy day savings account and put the money toward wildfire mitigation.

Even with the Monday boycott of some House Republicans, the bill garnered bipartisan support.

Burned trailers and cars are all that remains of a home in the community of Rowena outside The Dalles, Ore., after the Rowena Fire. June 18, 2025.

April Ehrlich / OPB

Lawmakers in support of the measure noted that it’s the first time the state will establish a permanent source of funding specifically for wildfire mitigation and prevention efforts.

Advertisement

“This bill doesn’t pit urban and rural Oregonians against each other. It recognizes that all of us are impacted by wildfires,” said Rep. Bobby Levy, R-Echo. “Whether you live in a small timber town or a city choked with smoke each summer, this is a statewide issue.”

Starting in January of 2026, there would be a 65-cent tax on oral nicotine packages, such as ZYN pouches. The tax would be higher on packages with more than 20 pouches. The combined $43 million or so generated – which would come from the nicotine tax and by redirecting a portion of the interest generated from the state’s rainy day fund – isn’t enough, many lawmakers acknowledged. But, they said, it’s a start. The state’s rainy day fund is the state’s savings account, money held back to be used for emergencies. The ending balance for the rainy day fund is projected to be about $1.9 billion.

Democratic state Rep. Pam Marsh, of Ashland, called the measure “a long time coming.”

“It’s June 23rd, in addition to our fire in the Applegate, more than 400 fires have already scorched 20,000 acres and burned up 56 homes this year,” Marsh said, with the latter a reference to the destructive Rowena fire in the Columbia River Gorge. “I know from firsthand experience in my district that the families displaced by fire face financial, physical and emotional challenges that may not be resolved for years, if ever, their lives are permanently changed in the face of unremitting wildfire risk.”

Marsh said the measure was “not enough,” but called it a “crucial first step.”

Advertisement

How to pay for wildfire costs has been a problem plaguing the state. Last fire season, more than 1.9 million acres burned. For months, the state failed to pay millions owed to contractors who were crucial in fighting the fires because they didn’t have the funds. Lawmakers met in December for a one-day special session to allocate $218 million in emergency funding to cover the costs.

A range of other ideas were floated this legislative session. At one point, Gov. Tina Kotek threw her support behind an idea to withhold parts of next year’s expected personal income “kicker” tax refund. Instead of sending the money back to taxpayers, she suggested using it to cover wildfire costs. But that idea failed to gain momentum.

House Bill 3940 now heads to the Senate.