At Partners for a Hunger-Free Oregon, we have long championed direct financial support for families facing economic insecurity. However, it is with significant concern that we strongly oppose Measure 118, a flawed proposal that – despite good intentions – poses substantial risks to the very families it aims to help.
Since the end of pandemic-era benefits, food insecurity in Oregon has increased dramatically, with over 400,000 Oregonians, including many children, unsure of where their next meal will come from. Measure 118 attempts to address this through direct cash payments, but those very payments risk disqualifying vulnerable families from crucial benefits such as SNAP, Medicaid, and other public assistance programs as the rebate payments are taxable and thus count against their income eligibility limits for benefits. The one payment from M118 could create cascading dismissals from vital benefits programs, which would cause struggling Oregonians to lose more than they gain.
The measure’s authors have attempted to skirt around this issue by mandating in its language that the state of Oregon apply for a federal waiver to exclude the rebate from being counted as income for federal programs like SNAP. However, no such waiver has ever been granted for similar initiatives, including when it was requested for Oregon’s child tax credit in 2023. If the waiver is denied – as it likely will be – Measure 118 could leave families worse off, creating financial uncertainty at a time when food insecurity is already on the rise.
To mitigate this potential harm, Measure 118 includes a “hold harmless” provision, which directs the state to reimburse families out of the general fund if their benefits are reduced due to the rebate. However, this approach would also have dire, though unintended, consequences for the people of Oregon –In the Legislative Revenue Office’s report, they note that the costs of reimbursing families would be substantially beyond the state’s ability to pay without diverting funds away from services like K-12 school funding and other critical services that support long-term well-being in Oregon.
While we agree with the authors of the measure that it’s essential to demand large corporations contribute more to the wellbeing of the people of Oregon, this measure’s design isn’t the solution.
We urge Oregonians to vote no on Measure 118 and work toward policies that provide meaningful support without risking unintended harm to families in need.
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