Alaska
Alaska Department of Health cuts 30 positions, dissolves a public health program after federal funding cuts
The Alaska Department of Health is cutting 30 positions and shuttering a program meant to improve public health access across the state after the Trump administration cut more than $50 million in previously awarded federal funding.
A dozen federal grants to the Alaska Department of Health were terminated effective March 24 amid broad funding cuts, department spokesperson Shirley Sakaye confirmed Thursday, including funds awarded in response to the COVID-19 pandemic that were set to expire by 2027.
“Funds were utilized for time-limited projects that increased public health infrastructure and capacity,” Sakaye said by email.
As a result of the cuts, the department is dissolving the Healthy and Equitable Communities unit, which was launched in 2021 in response to health access and outcome disparities across the state that came into sharp relief during the pandemic.
The unit focused on “creating partnerships across Alaska to ensure that the conditions in which Alaskans live, work and play support opportunities to lead healthy lives,” according to a department webpage that was removed earlier this week. The program had staff in Anchorage, the Mat-Su region, Fairbanks, Bethel, Nome, Homer, Kodiak, Juneau and Ketchikan.
Now, partnerships established by the department are set to be abruptly discontinued, leading to what could be significant impacts, including in rural communities where access to health services is limited.
The 12 canceled grants originally amounted to more than $185 million, of which $135 million had already been expended, according to a list of canceled grants maintained by the federal Department of Health and Human Services. The state lost out on $50 million in future funding, but because of the sudden cancellation of the grants, the state may also lose out on improvements it was planning to make through previous expenditures because projects will be abandoned midway.
Among the terminated grants was a $96 million award toward improving epidemiology and laboratory capacity for preventing and controlling emerging infectious diseases. More than $24 million from that grant had yet to be spent and was canceled.
The cancellation also impacted a $40 million award for immunization and vaccines for children, of which $16 million had not yet been spent when the grants were canceled.
Alaska has seen a drop in vaccination rates among children in recent years. For example, a decade ago, about 94% of kindergartners were vaccinated against measles, mumps and rubella. As of last year, that rate had dropped to 84%, according to data from the U.S. Centers for Disease Control and Prevention.
The grant cancellations also impacted more than $7 million for a “national initiative to address COVID-19 health disparities among populations at high-risk and underserved, including racial and ethnic minority populations and rural communities,” administered by the Centers for Disease Control and Prevention.
More than $1 million out of a $4.7 million grant to address substance use was canceled. Roughly $700,000 in mental health grant funding was canceled.
Julie Cleaton, policy committee chair for the Alaska Public Health Association, said the association opposes the cuts to public health funding.
“We’ve always been underfunded, and this will not help. The state is already feeling the impact of these federal cuts,” Cleaton said in an interview Thursday.
Cleaton works for the state Department of Health as a data analyst for the Alaska Cancer Registry but was not speaking on behalf of the state, she said.
“The COVID-19 pandemic made it clear to a lot of people in government that we weren’t well-prepared. We’re not working off of a healthy baseline population, and there are a lot of improvements to be made there. So there was some funding that went out because of COVID-19, but a lot of it was to prevent future outbreaks, to improve our systems and to get everyone healthier, not just specifically for COVID-19, but for everything,” Cleaton said.
Cleaton said that the Healthy and Equitable Communities unit — now disbanded — had been “positioned in several communities across the state to try and get to more rural locations that don’t usually see enough public services.”
“We’ve been trying to work to help everyone get on a more even footing, health-wise, and this will just be a setback to that,” she said.
Ingrid Stevens, former president of the Alaska Public Health Association, said that Alaska will also be impacted by other cuts to the U.S. Department of Health and Human Services.
“A primary concern is the supply of data,” she said.
Stevens, who works in the Alaska tribal health system, said that Alaska could lose critical data that the federal government collects and shares with states through surveys, including ones pertaining to mental health and substance abuse.
“Those national bodies are the ones that give us guidance. They do all the research and they relay that down to the states so states can implement that research to help improve public health,” said Cleaton. “If we don’t have that national guidance, who’s going to do that research?”
Cleaton said that impacts of the loss of public health programming may not be felt immediately, but their long-term effects could be significant.
“We’ve been seeing declining vaccination rates for several years — and now we’re getting measles outbreaks. So it may take time to really feel the impact, but it will hurt what we do,” Cleaton said.
‘A general sense of anxiety’
Broad cuts to federal spending — led by tech billionaire Elon Musk — are set to have a disproportionate impact on Alaska, which receives a large share of federal funding per capita, economists, union leaders and nonprofit leaders have said.
Already, 230 Alaskans in the federal workforce had filed for unemployment insurance since February, when mass firings began, according to Alaska’s Director of Employment and Training Services Paloma Harbour.
But this is likely the first time that Alaska state employees have lost their jobs due to federal funding cuts under the current Trump administration, according to Heidi Drygas, director of the Alaska State Employees Association, a union representing most state employees, who said the terminations impacted both permanent and non-permanent positions.
Department of Health staff were laid off in communities including Anchorage, Juneau, Wasilla, Fairbanks, Homer, Valdez and Petersburg, she said.
Drygas said the Department of Health was proactive in involving the Alaska Department of Labor and Workforce Development to help impacted employees find other jobs with the state, which has a high vacancy rate across departments.
But Drygas said that state employees are anxious — not just about layoffs that occurred this week but about potential imminent impacts of federal funding cuts, including future layoffs.
“There is a general sense of anxiety,” said Drygas. “Especially with employees that work under federal grants or they have federal counterparts that they work with on a daily basis.”
“What we’re worried about is what comes next,” she added. “It’s just a really difficult time for state employees.”
Drygas said she anticipates future impacts, and hopes Alaska’s congressional delegation will do “whatever they can to protect our federal funding.”
Alaska’s two Republican U.S. senators said earlier this week that they were in touch with the Trump administration over the funding cuts to the Department of Health.
U.S. Sen. Dan Sullivan has been “working with state health officials to gather more information about how these reorganization efforts impact Alaska,” spokesperson Amanda Coyne said Wednesday.
Coyne said that Sullivan had “an extended phone call” with Trump’s Health Secretary Robert F. Kennedy Jr., which “focused on extending some of the grants at issue, and on larger solutions as part of HHS’s reorganization efforts that would address Alaska’s unique health care needs and challenges.”
None of the canceled grants have since been reinstated, the Alaska Department of Health confirmed late Thursday.
U.S. Sen. Lisa Murkowski is “tracking the grant funding cuts, and her office is engaging with the administration,” spokesperson Joe Plesha said. “The sudden loss of funding and the loss of these positions will make a real impact in Alaska, and the Senator is focused on finding solutions to continue the progress that has been made with these funds.”
The office of U.S. Rep. Nick Begich III “is monitoring these funding cuts and the direct impacts on Alaskans,” spokesperson Silver Prout said in a written statement.
Alaska
Anchorage celebrates Juneteenth with 3-day community event downtown
Anchorage is commemorating Juneteenth with dancing, music and celebrations of Black excellence and culture this weekend.
The citywide Juneteenth celebration also includes opportunities for education, community gathering and reflection, and features vendors and guest speakers. The event kicked off Friday and continues from 1 to 6 p.m. Saturday and Sunday on the Delaney Park Strip.
Tragil Wade, an entrepreneur, author and inspirational speaker who is the big sister of former NBA great Dwyane Wade, was Friday’s special guest.
Saturday’s festivities, spotlighting the theme “Community and Culture,” kicked off with a freedom rally and parade. Saturday also features a youth segment, hip-hop dancing, community line dancing, multiple DJs and a performance from Soul Society.
“Faith and Family” is the theme for Sunday’s festivities. There will be a special Father’s Day opening at 1 p.m., a praise cardio session on the grass and an HBCU gospel segment. The afternoon will close with a community praise dance.
Juneteenth commemorates the day that the last slaves in the Confederacy were informed of their freedom following the Emancipation Proclamation on June 19, 1865. Long celebrated by Black Americans, Juneteenth became a federal holiday in 2021. In 2023, the Anchorage Assembly made Juneteenth an official city holiday, and in 2024, the Alaska Legislature passed a bill to designate Juneteenth as a state holiday.
Alaska
Pilot dies in small plane crash southeast of Cordova
A pilot was killed in a plane crash in mountainous terrain near Cordova, Alaska State Troopers said Friday.
The agency was notified of the overdue Piper Pacer around 8 p.m. Thursday, troopers said in an online post. The pilot was believed to be the sole person on board the aircraft, which was thought to be flying between Yakutat and Fairbanks, troopers said.
Aircraft from the Alaska Air National Guard and Alaska Wildlife Troopers started searching for the plane, and a Guard helicopter crew found the overdue Piper Pacer around 4 p.m. Friday where it had crashed near Kanak Island, about 40 miles southeast of Cordova, troopers said.
The pilot, whom troopers did not identify, was found dead in the crashed plane, troopers said. His body was take to the State Medical Examiner Office in Anchorage for autopsy and positive identification, according to troopers.
Troopers said the pilot’s next of kin and the National Transportation Safety Board were notified.
Alaska
It’s the Alaska Legislature’s last day in special session. Here’s the latest.
The Alaska Senate plans to vote today on a new draft of a bill that would reduce taxes on the Alaska LNG project. It’s the last day of a special session Gov. Mike Dunleavy called to consider the issue.
Dunleavy and pipeline developer Glenfarne, which owns a 75% stake in the project, say a measure replacing a 2% annual property tax with a much smaller tax on gas throughput is essential to allowing the project to attract investors and court lenders. Dunleavy and Glenfarne applauded the version of the bill that passed the House a week ago.
The Alaska LNG project, estimated by the developer to cost up to $54.5 billion, includes an 807-mile pipeline, a conditioning facility on the North Slope to remove gas impurities such as carbon dioxide, and a liquefaction plant on the shores of Cook Inlet to export the gas to Asia. The project would be split into two phases: first, a shorter in-state pipeline to provide gas to Alaskans, and then the much more expensive — and much more lucrative — export infrastructure.
The Senate’s new draft retains many of the House’s provisions with some important changes.
Perhaps the most significant changes are to the project’s timeline: to be eligible for tax relief, the developer must commit to a final investment decision for the first phase by Jan. 1, 2028, and construction of the in-state pipeline would need to be complete by the end of 2032.
The House’s version required only that construction begin by Jan. 1, 2032.
The faster timeline is an effort to address Southcentral’s looming shortage of natural gas, said Sen. Bert Stedman, a Sitka Republican and a co-chair of the Senate Finance Committee. The Department of Natural Resources’ production forecast envisions demand outstripping Cook Inlet gas production by 2032, requiring producers to dip into storage.
“There’s been a lot of concern out of the Railbelt with the declining volume in Cook Inlet,” Stedman said.
But the more aggressive timeline sparked concerns from minority Republicans on the committee; it increases the risk on an already risky, marginal project, they said.
“That’s very damaging,” said Sen. Mike Cronk, a Tok Republican and the Senate minority leader. “There’s so many factors that we don’t control.”
Putting a “hard construction date” in the bill may be a “poison pill,” Cronk said.
Glenfarne and Gov. Mike Dunleavy did not immediately respond to requests for comment on the new version of the bill.
Stedman suggested future legislatures could revise the date to account for “unforeseen black swan events.”
“We can change these and modify these going forward,” Stedman said. “This is not in the Constitution, so I think there’d be some consideration under good faith trying to get the project constructed.”
The tax rate at the heart of the bill — the so-called alternative volumetric tax on gas flowing through the pipeline from the North Slope to Southcentral Alaska — would be fixed, rather than a weighted average tied to the cost of each component of the project.
The Senate draft sets the tax initially at 6.2 cents per 1,000 cubic feet of gas throughput, starting five years after gas begins to flow through the pipeline. The tax would take effect sooner if throughput reaches 500 million cubic feet per day, which is more than double what Southcentral Alaska uses now.
The tax would rise to 10.6 cents per 1,000 cubic feet once Phase 2 of the project, which includes the liquefied natural gas export facility, is up and running. The tax revenue from that mirrors what the Department of Revenue estimates the weighted tax that passed the House would yield.
The rates would rise between 1% and 3% each year, depending on inflation.
The House backed 30-plus years of tax breaks. Some senators were skeptical of that, so their version doubles the tax rate ten years after exports begin, then doubles them again in 2060.
The new bill retains key conditions for the tax relief included in the House’s version: the developer must commit to building a spur line to Fairbanks and negotiate project labor agreements with unions. It also includes up to $80 million in community impact funding for municipalities: $40 million due shortly after the final investment decision for each project phase.
It also includes House-passed price controls on in-state gas. Utilities would pay no more than $16 per million British thermal units, adjusted for inflation. That’s roughly $16.60 per 1,000 cubic feet, substantially higher than current Southcentral gas rates — about $10 — but likely cheaper than imported gas, according to Southcentral’s gas utility.
Also notable is an omission from the bill. It does not include a measure that had been under discussion that would subject large so-called S corporations and other pass-through entities in the oil and gas business, like LLCs, to the state’s corporate income tax.
Glenfarne, in its only comments so far on the new bill, urged lawmakers not to include that tax in the final version.
“If the Senate passes a bill with the proposed S Corp tax, it will introduce major hurdles for Alaska LNG to secure the right financing to build the project,” the company said in a statement provided by spokesperson Tim Fitzpatrick.
Senators are due to amend the bill and take a final vote later today.
The special session expires at midnight tonight, but Gov. Mike Dunleavy has already signed a proclamation calling another special session to begin Saturday.
Asked whether the new special session represented a contingency plan in an event the bill failed to pass, Dunleavy spokesperson Jeff Turner declined to say.
“We will see what happens,” Turner said.
This is a developing story. Check back for updates.
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