Small Oregon cities face lower match limits for several grants

Several state grant programs may require small cities to provide only the listed percentage of project, grant or service costs. This applies to incorporated Oregon cities with populations of 20,000 or fewer, grouped by population size, across transportation, levee, water and other listed grant programs. Cities with 5,000 or fewer residents may face a match of up to 3 percent for amounts of $100,000 or less and up to 5 percent for larger amounts. Cities with more than 5,000 and up to 7,500 residents may face a match of up to 7 percent. Cities with more than 7,500 and up to 10,000 residents may face a match of up to 9 percent. Cities with more than 10,000 and up to 20,000 residents may face a match of up to 12 percent. Agencies may set the actual match below these limits where the text allows. These provisions apply when the act takes effect, on the 91st day after the 2026 regular session adjourns sine die.

Small cities may use qualifying grant money for planning, engineering, support and other project phases in addition to construction. The rule covers incorporated cities with populations of 20,000 or fewer using grants for capital construction or municipal infrastructure under the listed transportation, levee and water programs. The money must be awarded for capital construction or municipal infrastructure. The listed uses include engineering, planning and support, but the text also allows other phases of the funded project. This permission applies when the act takes effect, on the 91st day after the 2026 regular session adjourns sine die.