This story was produced by the Oregon Journalism Project, a nonprofit newsroom covering the state.

A ballot initiative to eliminate Oregon’s estate tax, Initiative Petition 51 , is moving forward even as Gov. Tina Kotek and state lawmakers digest the coming budget hole created by President Donald Trump’s Big Beautiful Bill Act.

Oregon’s estate tax generated $423 million in 2024–25, according to state figures. That was a big jump from $339 million the previous year.

Democratic lawmakers will count on that money more than ever amid a slowing economy and federal budget cuts.

During last week’s legislative days, Oregon’s nonpartisan Legislative Fiscal Office circulated the latest estimates of the impact of those cuts, which the office expects to total $15.1 billion in lost federal funds

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