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Alaska ferry system faces $78M budget hole after Trump administration delays federal grant

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Alaska ferry system faces M budget hole after Trump administration delays federal grant


The Alaska Marine Highway ferry Kennicott is docked in Sitka on February 24, 2024. (Marc Lester / ADN)

The Alaska ferry system is at risk of running out of operating funds this summer because of a frozen federal grant program, according to state transportation officials.

Nearly half of the Alaska Marine Highway System operating budget in the current calendar year was intended to be funded with a grant from the Federal Transit Administration, according to a budget approved by lawmakers last year. But the grant, which was expected to be issued last year, has not yet been released.

That has left a nearly $78 million hole in the $170 million budget for the current calendar year. Without a solution, ferry boats that provide transportation to communities in Southeast Alaska, Kodiak and along the Aleutian chain could be left without the funds needed to continue running as soon as July.

Amid a tight revenue outlook, the state has few options for backfilling the $78 million that it was counting on receiving from the federal grant, lawmakers in the House and Senate budget committees said in recent days.

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The federal grant, known as the Ferry Service for Rural Communities Program, was created through the bipartisan infrastructure bill that passed in 2022.

Alaska’s U.S. Sen. Lisa Murkowski was instrumental in creating the program and designing it to benefit the ailing ferry system, which has seen decreased service and reliability amid years of declining state investment.

Murkowski’s spokesperson Joe Plesha said Monday that the senator had “received a commitment” that the grant funding window would open “this spring.” However, he said her office didn’t have a specific time for releasing the funds, nor any specifics on the amount of funding that would be available this year, given that funding was not released last year. The state is again banking on a federal grant through the program to fund ferry operations in the 2027 calendar year.

In the first three years of the federal program, the state received $45 million, $38 million and $66 million for ferry operations. Because of the grant timeline, the Alaska Legislature has built the grant into its annual budget each year before the specific funding amount has been announced.

Last year, lawmakers — at the request of Gov. Mike Dunleavy — built a $78 million federal grant for ferry operations into the state budget. But after President Donald Trump took office, the grant application window never opened.

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In response to a request for comment, the Federal Transportation Administration said in a December statement that it “anticipates announcing a Notice of Funding Opportunity for its Ferry Programs in 2026.” The FTA press office did not provide an explanation as to why the funding had not been awarded in 2025, or when in 2026 the funding opportunity would open.

The office did not immediately respond to additional questions sent Monday.

Murkowski personally reached out to U.S. Transportation Secretary Sean Duffy “to ensure that steps are taken so that this funding can get out the door as soon as possible,” her spokesperson said in December.

In previous years of the program, the application window has opened between April and July. Specific funding amounts were announced between five and six months after the window opened. That means that even if Trump administration opens an application window in the coming days or weeks, the funding amount awarded to Alaska likely won’t be known until after the legislative session ends.

State transportation officials, including Transportation Commissioner Ryan Anderson, told the Alaska Senate Finance Committee on Monday that they will be traveling to Washington, D.C., later this month to advocate for the funding to be released.

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But they provided few details on how they would proceed if the funding is not awarded in time to keep ferries running through the summer months, which are the system’s most busy and most profitable.

Department officials are proposing to move the ferry system from a calendar year budget cycle to a two-year cycle, which would give them more flexibility in balancing state and federal funding streams.

One idea that Anderson raised was to shore up the system’s available funding by selling the Matanuska, a mainline vessel built in 1963. That ferry has not been in regular operation since 2020 due to structural problems that have been deemed too costly and complicated to fix. Instead, the vessel has been used to house ferry workers in Ketchikan amid a housing crunch that has made it difficult to attract new workers and fill vacancies. But Anderson said other operational ferries, the Kennicott and the Columbia, could be used intermittently as so-called “hotel ferries,” instead of the Matanuska.

It is unclear how much the state would save by selling the Matanuska. In 2022, the state sold the Malaspina — another mainline ferry built in 1963 — to Alaska businessmen John Binkley and David Spokey for $128,250.





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Alaska

8 Prettiest Downtown Strips In Alaska

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8 Prettiest Downtown Strips In Alaska


Alaska’s eight prettiest downtown strips sit in towns as different from each other as the landscapes around them. Skagway draws cruise ship visitors to its Gold Rush history. Sitka pairs Russian Orthodox history with totem-lined trails just beyond downtown. Wrangell is one of the oldest towns in the state. Each downtown is worth spending time in, though Sitka, Ketchikan, and Wrangell are the only ones on this list accessible solely by air or water. In winter, clear dark nights can bring Northern Lights over several of these towns. After a day out, fresh seafood is never far away.

Skagway

Colorful storefronts line the street in downtown Skagway, Alaska. Image credit: lembi via Shutterstock.

Skagway is located in Alaska’s panhandle and is known as the gateway to the Klondike Gold Rush and a major cruise ship destination. For those who love nature and history, visit Klondike Gold Rush National Historical Park and hike part of the 33-mile Chilkoot Trail, the historic route between Dyea, Alaska, and Lake Bennett, British Columbia. Backpackers can stay at designated campsites along the route, with permits required in season. For food, check out Skagway Brewing Company, which offers craft beers and American comfort foods. Another seasonal Skagway option is Salty Siren, whose menu features Alaskan golden king crab, seafood chowder, fish and chips, and pulled-pork sandwiches.

Sitka

Downtown street in Sitka, Alaska. Image credit: Jeff Whyte via Shutterstock.
Downtown street in Sitka, Alaska. Image credit: Jeff Whyte via Shutterstock.

Sitka sits on Baranof Island and is known for its rich Tlingit and Russian heritage, gorgeous outdoor scenery, and variety of wildlife. Sitka is only accessible by sea or air and is a popular stop on cruises. The area offers lots of outdoor activities, including fishing, hiking, and kayaking. Tourists like to visit St. Michael’s Russian Orthodox Cathedral, a National Historic Landmark whose original 1844-1848 building was reconstructed after a 1966 fire. For a short walk through Sitka’s layered history, visit Sitka National Historical Park, where visitors can enjoy a scenic coastal trail lined with totem poles. Grab a bite to eat at Beak Restaurant for delicious seafood. Or if you’re craving pizza or wings, visit Mean Queen for some comfort food.

Talkeetna

The charming downtown area of Talkeetna, Alaska.
The charming downtown area of Talkeetna, Alaska.

Talkeetna is a historic place in Alaska’s Matanuska-Susitna Borough, famous as a gateway to Denali, North America’s highest peak, which welcomes tourists and climbers from all over the world. Beginning as an Alaska Railroad headquarters, this historic location has an artistic vibe and a vibrant art scene despite its small population. Locals and visitors enjoy flightseeing, rafting, fishing, and delving into the unique history, including Stubbs, the late honorary cat mayor who held the ceremonial role until his death in 2017. For those hoping to see the Northern Lights, Talkeetna’s dark winter skies can be a good base when skies are clear and aurora activity is strong. Once you’re hungry, grab some friends and visit Homestead Kitchen for some traditional rustic options like burgers and flatbreads. Then grab a craft beer at Denali Brewpub in their rustic setting.

Homer

The harbor in Homer, Alaska. Image credit: Charles Knowles via Shutterstock.
The harbor in Homer, Alaska. Image credit: Charles Knowles via Shutterstock.

Found on the Kenai Peninsula, Homer is famous for its gorgeous views of Kachemak Bay, the Homer Spit, and distant volcanoes. Here’s a perfect spot for those hoping to see wildlife and enjoy other outdoor activities, like hiking and fishing. Across the bay, Kachemak Bay State Park is reached by water taxi or air taxi and offers views of the mountains and the ocean. Or head to Bishop’s Beach, which is dog-friendly, and enjoy the soft sand with your four-legged best friend. After experiencing the beautiful scenery of Homer, grab some dinner at the Twisted Goat and dig into some comfort food, including pizza, fish and chips, and burgers. On a nice day, visitors won’t want to miss a local favorite, Water Rudders, which offers a beautiful view from its patio.

Seward

Seward Harbor in Resurrection Bay in Seward, Alaska. Image credit: Raisa Nastukova via Shutterstock.
Seward Harbor in Resurrection Bay in Seward, Alaska. Image credit: Raisa Nastukova via Shutterstock.

Located about 120 miles south of Anchorage, Seward is a scenic port town at the head of Resurrection Bay. It’s loved for its beautiful views of the mountains, marine wildlife, and glaciers, and it serves as a gateway to Kenai Fjords National Park. Here, visitors can take a hike, join in on ranger-guided tours, kayak, and so much more. For those wanting an aerial view, Seward Helicopter Tours offers flights over glaciers and other beautiful sites. For those looking to camp, Waterfront Park offers RV and tent sites with views you can’t beat. After enjoying sightseeing, grab some seafood or steak at Ray’s Waterfront with a wood-paneled dining room overlooking the marina and mountains. Or get some comfort food at The Highliner Restaurant, where the menu includes crab cakes and fish tacos, just to name a few.

Ketchikan

Ketchikan, Alaska. Image credit: Darryl Brooks via Shutterstock.
Ketchikan, Alaska. Image credit: Darryl Brooks via Shutterstock.

Ketchikan is located on Revillagigedo Island in Alaska’s Tongass National Forest, known for its rich native culture, totem poles, and salmon fishing. The town is a popular cruise ship destination and is only accessible by boat or plane. Here, visitors can enjoy wildlife viewing, especially in the summer months. For a beautiful site, look into Misty Fjords National Monument and see sheer granite cliffs, towering 3,000-foot rock walls, deep saltwater fjords, and waterfalls within Tongass National Forest. Locals and visitors enjoy spending time at Creek Street, a historic boardwalk built on pilings over the creek, which is now filled with shops, cafes, and galleries. Grab a bite to eat at The Alaska Fish House with beautiful views out the window and live music. Or order crab and seafood at Ketchikan Crab & Go, a seasonal spot at Salmon Landing that caters to the cruise-season crowd.

Valdez

Valdez boat harbor in Valdez, Alaska.
Valdez boat harbor in Valdez, Alaska.

Found in Southcentral Alaska, Valdez is known for its stunning mountain views, water scenery, and being the southern terminus of the Trans-Alaska Pipeline. This former Gold Rush town is a popular destination for fishing, glacier tours, and wildlife viewing, and is accessible via the Richardson Highway from Anchorage and Fairbanks. For shore views of icebergs and the face of Valdez Glacier, head to Glacier View Park at the end of Airport Road. For an easy family-friendly outing near town, try Dock Point Trail, a short coastal loop with ocean and Duck Flats views. In summer, The Potato serves handmade comfort food and beer or wine from its harbor-view location in Valdez. Or get some pizza or fish and chips at The Fat Mermaid. It has a laid-back setting and views of the marina.

Wrangell

The gorgeous landscape of Wrangell, Alaska.
The gorgeous landscape of Wrangell, Alaska.

Wrangell is found in Southeast Alaska, located on Wrangell Island in the Inside Passage, and is known for its Tlingit culture, variety of wildlife, and access to the Stikine River. This is one of Alaska’s oldest towns and offers plenty of outdoor activities like hiking, glacier exploration, and fishing, and is only accessible by air or the Alaska Marine Highway. Anan Wildlife Observatory is a must-visit to see bears, both black and brown, who call it home. You’ll have to take a boat or a floatplane to get there. Access the Stikine River from Wrangell for more wildlife viewing. For food, try Filipino, Thai, sushi, and other Asian dishes at Michelle’s Taste of Asia, a casual, family-run restaurant. Or grab pizza at Hungry Beaver Pizza and Marine Bar by Wrangell’s Inner Harbor.

These eight towns show a side of Alaska that operates at a different pace from the state’s most visited destinations. The downtowns are small, the history runs deep, and the wildlife has a way of showing up whether you plan for it or not.

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Alaska Airlines names CFO as new president

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Alaska Airlines names CFO as new president


Alaska Airlines has given its chief financial officer, Shane Tackett, another responsibility — president. Tackett will assume his additional role at the SeaTac-based airline on June 29. (M. Scott Brauer/Bloomberg)

Alaska Airlines has given its chief financial officer, Shane Tackett, another responsibility — president.

Tackett will assume his additional role at the SeaTac-based airline on June 29, according to a news release Wednesday.

Tackett will continue leading the organization’s finance, fleet management, investor relations, supply chain, internal audit and information technology functions, according to the release. His new responsibilities as president include oversight of Alaska Airlines’ commercial division.

Tackett previously held positions in labor relations, e-commerce and financial planning at the company, according to his LinkedIn profile.

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“I started at Alaska more than 25 years ago, and over that time we’ve built a stronger, more resilient airline with a clear strategy for the future,” Tackett said in a statement.

He said he is excited to lead more of the organization in his new role and deliver to guests, employees and owners.

In a statement, Alaska Airlines CEO Ben Minicucci said Tackett has led the company through challenges and helped it grow over his 25-year tenure.

“Bringing commercial and finance leadership together under Shane will strengthen alignment and accelerate our priorities as we continue advancing our strategy and creating long-term value for our stakeholders, said Minicucci, who also serves as CEO and president of the airline’s parent company, Alaska Air Group.

Tackett’s promotion comes as the airline navigates challenging macroeconomic factors, including rising fuel costs and weakening consumer demand for travel.

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Alaska Air Group — which includes Alaska and Hawaiian Airlines, as well as regional carrier Horizon Air and ground support company McGee Air Services — saw its profits drop 70% in 2025 year over year. It continued to face financial woes in 2026.

The company lost $193 million in the first three months of 2026 as it dealt with skyrocketing jet fuel prices due to the war in Iran.





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Alaska study sees mixed results on links between kelp farms and CO2 levels – Homer News

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Alaska study sees mixed results on links between kelp farms and CO2 levels – Homer News


Alaska study sees mixed results on links between kelp farms and CO2 levels

Published 5:30 am Thursday, June 18, 2026

A study into the amount of CO2 absorbed at a pair of Alaska kelp farms is throwing some cold water on hopes that seaweed could be an answer to climate change.

Alaska kelp farms, which have been viewed as a potential boon for reducing local carbon-dioxide levels, have surprisingly murky effects on atmospheric CO2 removal, according to a new study.

A University of Alaska Fairbanks-led project measured the amount of CO2 that was emitted and absorbed at two kelp farms in the Gulf of Alaska during the 2023-2024 growing season. The outcome was mixed — one farm slightly reduced carbon dioxide in the local environment while the other added more to it.

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Marine carbon dioxide removal (mCDR) has been touted as a potential strategy to reduce atmospheric carbon dioxide levels, with the ocean serving as a sink for human-produced CO2.

The study, which was recently published in the journal Ocean Science, is the first to measure mCDR in Alaska waters. It focused on kelp farms, which can draw down CO2 through the process of photosynthesis.

“It’s easy to jump on the bandwagon that seaweed is going to change the world, but ultimately we want to be honest to the public,” said Amanda Kelley, an associate professor at UAF’s College of Fisheries and Ocean Sciences and a contributor to the study.

“Really, it’s very nuanced, and there are a lot of factors that affect kelp’s ability to do that.”

Josianne Haag, who led the project as a UAF doctoral student, installed sensors both inside and outside kelp farms in Windy Bay near Cordova and Kalsin Bay on Kodiak Island. From seeding to harvest, hourly data was collected on ocean chemistry, temperature, salinity and oxygen levels.

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The two sites had numerous differences, including the type of seaweed being planted, the timing of their growing seasons and the size of the farms. Also, Windy Bay’s tides are more extreme than Kalsin Bay’s.

The results were striking and varied. The farms flipped between absorbing and releasing carbon dioxide depending on the amount of sunlight and the time of day. Extreme low tides affected CO2 levels by flushing groundwater into the area, briefly raising carbon dioxide levels.

A film of marine fauna grew on some of the farm equipment in Kalsin Bay, leading to a burst of carbon dioxide production through their respiration.

Overall, the Windy Bay farm slightly reduced nearby atmospheric marine carbon dioxide levels while the Kalsin Bay farm boosted them. Measurements will continue at the farms for at least two more years, but the first season revealed that a kelp farm’s recipe for carbon intake and output is surprising and complex.

“It’s really not doing much in either direction,” Haag said. “The farms aren’t necessarily harming anything, but we shouldn’t be blowing out of proportion that they’re going to save us from climate change.”

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The study was part of the Mariculture Research and Restoration Consortium project, which is an ongoing effort to look at the impacts and benefits of mariculture in Alaska. Mar ReCon research is funded by the Exxon Valdez Oil Spill Trustee Council.



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