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Alaska got the lowest August federal transportation allocation among states at $19 million from error-filled submission

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Alaska got the lowest August federal transportation allocation among states at  million from error-filled submission


The state of Alaska was awarded $19 million by federal highway administrators in August, the lowest amount given to a state this year from an annual reallocation of unused federal transportation funding.

Alaska transportation officials had requested $71.4 million from the August redistribution. But $52 million in projects was rejected due partly to errors made in the state’s submission. Alaska contractors are disappointed and concerned what that will mean for next summer’s road construction season and beyond.

At the end of each August, the Federal Highway Administration redistributes transportation funds among states that cannot be obligated by the end of the federal fiscal year on Sept. 30.

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The Federal Highway Administration announced on Aug. 30 that a record $8.7 billion would be redistributed to state transportation departments across the nation. Texas got the largest allocation at $1.17 billion. California got the second largest share with $622 million. Alaska received $19 million in spending authority — the lowest figure among 50 states and Washington D.C.

State transportation officials say this year’s reduced redistribution was due to several factors: Fewer big pots of money available to fund projects, changing federal requirements and added scrutiny on Alaska’s transportation spending.

“We are actually pleased to have captured this $19 million,” said Shannon McCarthy, a spokeswoman for the Alaska Department of Transportation, in an interview last week.

State transportation officials acknowledged that the state’s delayed and error-filled four-year, $5.6 billion transportation plan was a contributing factor to the Federal Highway Administration’s rejection of $16 million in projects from Alaska’s August redistribution request.

According to a transportation planning document obtained by the Daily News as part of a records request, much of the state’s ask for unused federal transportation funds was denied because of significant errors made in the submission.

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Basic and significant errors

The State Transportation Improvement Plan, or STIP, is a separate and comprehensive plan for highways, roads, ferries, and even bicycle lanes to be implemented in Alaska through 2027. States typically had their four-year transportation plans approved by last October, the start of the federal fiscal year.

Alaska’s first transportation plan was rejected by federal highway administrators four months late in February due to significant errors with dozens of proposed projects. After scrambling to correct mistakes and to remove ineligible projects, Alaska’s transportation plan was only partially approved in March.

Additionally, state officials were required to submit an amended transportation plan in late August that made corrective actions to numerous projects.

“There are a pretty significant number of them, and they are detailed and take a lot of work to address,” said Aaron Jongenelen, executive director of AMATS, Anchorage’s local transportation planning organization.

Some of the same problems associated with the state’s first four-year transportation plan have persisted through the process to correct those errors.

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Last year, AMATS and Fairbanks’ transportation planning organization, FAST Planning, said they were excluded from drafting the state’s plan as required by federal regulations. Projects were added to the state’s that were not also supported by the local planning organizations, such as bridge improvements to serve a contentious ore-haul project near Fairbanks operated by Kinross.

In late July, FAST Planning said they “were again excluded during development” of the state’s draft amended plan. Many of the concerns from local planning organizations were subsequently addressed by state transportation officials, but others remained.

The Alaska Department of Transportation has wanted to improve a stretch of the Seward Highway between Potter Marsh and Bird Flats, but the costly project has not been fully included in AMATS’ own transportation plan, which is required by federal regulations. The project was added to the state’s amended transportation plan despite a warning by AMATS that it would again be declared ineligible for federal funding.

A group of 12 Democratic and independent state legislators wrote to Transportation Commissioner Ryan Anderson in early August with concerns that the state’s amended transportation plan made allocation decisions that risked it posed to projects in next summer’s construction season.

Anchorage Democratic Rep. Zack Fields, a member of the House Transportation Committee, was scathing at the blatant errors that continued to be made by the department on critical state transportation funding requests. He said in an interview that Alaskans would broadly feel the impact of delayed or denied road construction projects.

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“Anyone who works in the construction industry, anyone who doesn’t want to drive through a two-foot deep pothole, anyone in the resource development industry who relies on a functioning surface transportation system. Literally, everyone is screwed by their incompetence,” he said.

Alaska’s amended four-year transportation plan was submitted on Aug. 28. That triggered a 30-day window for the Federal Highway Administration to review and potentially approve the new plan.

That uncertainty helped reduce Alaska’s August redistribution. Federal highway administrators rejected over $16 million of proposed projects because they were contingent on the state’s amended transportation plan already being approved.

According to the transportation planning document obtained by the Daily News, another $35.7 million in projects were rejected because they “were not ready to move forward.”

Some proposed projects were denied because of errors made in the state’s request, including by again adding projects that were not also in local transportation plans. Other projects could not be obligated by the end of September — a federal deadline.

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Emails obtained by the Daily News showed state transportation officials were warned ahead of time by the Federal Highway Administration that certain projects would be rejected because of errors. They were submitted anyway.

As part of Alaska’s August redistribution request, the state asked for $462,780 for rockfall mitigation at mile 113.2 of the Seward Highway. State transportation officials were told the project would be ineligible for funding. The project was submitted and was duly denied.

A federal highway official wrote in comments attached to that request: “Resubmission – why are design funds being added 4 years after construction ATP??”

Fields was not convinced by state transportation officials’ explanations about the reduced August redistribution being caused by changing federal regulations or added scrutiny.

“Every other state is administering these programs and getting way more money,” he said. “So how are we the only ones who are getting less money?”

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‘Surprised and disappointed’

The $19 million in federal transportation funds obligated to Alaska in August stands in stark contrast to the recent past. Last year, Alaska got a record $108 million. The year before, the state received a then-record $87 million in authority to be used for seven projects.

“Alaska is geared up to build projects that address safety and fix our existing infrastructure,” Transportation Commissioner Ryan Anderson said in a news release two years ago.

The Associated General Contractors of Alaska, which represents over 600 local contractors, was concerned by this year’s reduced funding and what it could mean for future construction seasons.

“AGC members were surprised and disappointed to see Alaska receive the lowest August redistribution funds of any state in the nation,” said Alicia Amberg, executive director of AGC, in a prepared statement.

Amberg noted that Alaska’s 2024 redistribution was down 82% compared to last August. That was despite a nearly 10% increase in transportation funds available nationwide for redistribution, she said.

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“We don’t know how and if this will impact the construction program in the coming months, but less money going toward safe and reliable infrastructure in Alaska is always a concern,” Amberg said.

She added that AGC was working with state transportation officials “to understand the bigger picture funding strategy in place that will ensure ample opportunity and predictability for the construction industry moving forward.”

McCarthy, a spokesperson for the Alaska Department of Transportation, emphasized that Alaska is set to receive $590 million in federal transportation funding this fiscal year before accounting for the August redistribution. But not all of that funding has been made available.

FAST Planning in Fairbanks said by Aug. 21 that it had been obligated $13.3 million, which represented 43% of the nearly $31 million in funding it has anticipated receiving this federal fiscal year.

By the end of June, AMATS in Anchorage had obligated just $14 million of $50 million, which was just 28% of the funding it had anticipated receiving this year. More funding could be made available before the end of the federal fiscal year, which is typical. But Jongenelen said the gap this year was substantial.

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“The big difference this go around is the estimates are much higher of how much we don’t anticipate obligating,” he said.

Jongenelen, executive director of AMATS, said the delayed federal transportation funding available for Anchorage was directly connected to the delays in getting federal approval for the state’s amended four-year transportation plan.

He said that can have real consequences. A project to rehabilitate a stretch of Spenard Road to improve safety for drivers and pedestrians would likely be delayed, but he didn’t know by how long. He said that can have “a butterfly effect.”

“So one project is delayed a year. That could delay two other projects. Those could delay three other projects,” he said. “It’s kind of this effect that you don’t really know — it looks small at the beginning, but it can grow into being a larger thing as time goes on.”





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Elim resident dies, child injured in snowmachine collision

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Elim resident dies, child injured in snowmachine collision


A 55-year-old Elim resident died in a snowmachine collision Friday night, Alaska State Troopers said.

The accident, which occurred in the Norton Sound village of fewer than 400 residents, was reported to the agency just before 11 p.m. Friday, troopers said in an online statement. The report indicated that Anna Aukon “was riding in a sled down a road when she was struck by a snowmachine also traveling on the road,” troopers said. Life-saving measures were administered but were unsuccessful, according to troopers.

A young child also sustained injuries in the collision and was medevaced from Elim, troopers said.

Aukon’s next of kin was at the scene, according to troopers, and her body was being taken to the State Medical Examiner Office.

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Nome troopers responded to Elim on Saturday to investigate the collision, the agency said.





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Opinion: Alaska must speak with one voice about the future of a natural gas pipeline

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Opinion: Alaska must speak with one voice about the future of a natural gas pipeline


The setting sun casts a warm glow on the Chugach Mountains beyond the Anchorage skyline and Cook Inlet. (Bill Roth / ADN)

“North to the Future” wasn’t just a motto in my family. It was a lived experience.

My grandfather came to Alaska in 1948 as a Local 302 heavy equipment operator. He helped build roads and airports across this state and ultimately worked on the trans-Alaska pipeline. He came north because Alaska was rising.

Back then, the spirit of this state was dynamic and confident. When opportunity appeared, we seized it. We were growing. Our infrastructure expanded and our young people stayed. Alaska believed in its future.

Today, Washington, D.C., and Wall Street are watching us again. They’re not just studying engineering plans for the Alaska LNG project. They’re listening for something deeper: Does Alaska still believe in itself? Does Alaska truly want this project?

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If our message is confused, if we hedge, undercut or politicize this moment, the answer they will hear is “no.” And once that perception hardens, capital and federal focus will move elsewhere.

Energy security is not optional. Southcentral utilities have made it clear that we lack sufficient long-term, firm gas commitments beyond the near horizon. Without a durable solution, Alaska, sitting atop one of the largest untapped gas resources in North America, could soon be importing natural gas to heat homes and power businesses.

Importing energy in a resource-rich state is not resilience. It is vulnerability. Renewables absolutely have a role in Alaska’s future. So does hydro. So does coal. Alaska should be all-in on energy. We are one of the most resource-endowed places on Earth. There is no reason to think small.

Exporting North Slope gas does not displace our need to develop in-state hydro, responsible coal, wind, solar and emerging technologies. It complements them.

Let’s export the gas the world needs and reserve the gas Alaskans require for reliability.

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And let’s continue diversifying our in-state portfolio to power industry and strengthen resilience. Energy abundance is not a contradiction. It is a strategy.

AKLNG is not simply an export project. It is an energy security project for Alaska and a strategic energy project for America. The economic upside is significant. The Alaska Gasline Development Corp. projects that AKLNG could generate roughly $600 million per year in total state revenues once operational — royalties, production taxes and related activity. That is a baseline estimate. If Alaska participates as a co-investor, long-term revenue potential increases substantially.

Talk about a revenue generator. At a time when policymakers debate new taxes on industry and even on individual Alaskans just to balance the books, we are staring at a project capable of producing hundreds of millions annually while strengthening energy security. That should be a no-brainer.

Meanwhile, our oil and gas industry is doing extraordinary work revitalizing North Slope production. Projects like Willow and Pikka are restoring throughput and revenue. The private sector is demonstrating confidence in Alaska’s future. The question is whether we will match that confidence.

For too long, we have allowed doubt and policy paralysis to define the conversation. We debate. We delay. We send mixed signals. Investors can model engineering risk and regulatory timelines. What they cannot model is political incoherence.

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From the perspective of Washington and Wall Street, confusing or contradictory signals from Alaska’s elected leadership are more destabilizing than permitting hurdles. No financier commits billions into a jurisdiction that sounds ambivalent. No federal partner prioritizes a state that publicly undercuts itself.

We built the trans-Alaska pipeline because we believed in Alaska’s future more than we feared obstacles. That generation understood something simple: When opportunity arrives, you seize it. AKLNG is such a moment. The gas is here. The markets are real. Federal alignment is strong. Our broader energy portfolio is vast. Our workforce is capable.

Alaska has always been a powerhouse of people and resources. If we want energy security, we must say so clearly. If we want diversified energy, we must pursue it boldly. If we want growth, we must demonstrate confidence. Washington is listening. Wall Street is listening. The next generation is listening.

Let’s show them that Alaska still knows how to seize the moment — and rise.

Rep. Chuck Kopp currently serves as the Majority Leader in the Alaska House of Representatives and represents District 10.

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• • •

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Editorial: Decision time in Juneau: Discipline or make it rain?

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Editorial: Decision time in Juneau: Discipline or make it rain?


The trans-Alaska pipeline and pump station north of Fairbanks. (AP Photo / File)

Alaska has seen this movie before: oil prices spike, politicians celebrate and Juneau starts figuring out how fast it can spend the money.

The U.S. attack on Iran has pushed global oil prices higher, rattling energy markets and sending crude prices upward as supply fears ripple through the global economy. Energy markets surged as tanker disruptions and facility shutdowns across the Middle East threatened supply — a reminder that geopolitical shocks can move oil prices overnight.

For Alaska, that means something very specific: more money. But before Gov. Dunleavy and the Alaska Legislature start eyeing a fresh pile of cash like kids staring at a cookie jar, let’s get something straight. This is not prosperity. This is a temporary windfall driven by war.

And if the past is any guide, Juneau has a good chance to screw it up.

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[Related news coverage: Spike in oil prices will boost Alaska revenue, but not enough to cover projected deficit]

Oil prices jumped sharply after the U.S. and Israel attacked Iran on Feb. 28, and analysts say prices could climb even higher if the conflict drags on. Some forecasts suggest oil could exceed $100 per barrel, which could mean roughly $1.5 billion more in revenue for Alaska in the coming year, according to reporting by the Juneau Empire.

That kind of money would erase much of the state’s budget deficit and could even fund a dividend north of $3,000.

Cue the political stampede.

In an election year especially, there will be lawmakers eager to promise giant Permanent Fund dividends fueled by this sudden surge in oil revenue. Expect campaign ads. Expect grandstanding. Expect speeches about “returning the wealth to the people.” And even before the attack on Iran, Gov. Dunleavy was already pushing an unsustainable full dividend for each Alaskan.

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It’s a stupid idea — not because Alaskans don’t deserve dividends but because temporary revenue should never be used to make permanent promises. War-driven oil money is the worst possible revenue on which to build promises.

Alaska should know better by now

Alaska’s finances remain wildly exposed to oil price swings. A single dollar change in oil prices can move the state budget by roughly $25 million to $35 million, according to Alaska Public Media.

That volatility is exactly why treating a war-driven price spike as stable revenue is fiscal stupidity.

Even lawmakers watching the markets closely say the state should not assume the spike will last. As legislative leaders told Alaska Public Media, Alaska cannot build its spending plans around overly optimistic oil prices. Yet history tells us that when oil money shows up unexpectedly, discipline in Juneau disappears faster than reindeer sausage at the Tanana Valley State Fair.

The last time a global conflict sent prices soaring was after Russia invaded Ukraine in 2022. Oil shot above $100 a barrel for months. What did Alaska do? The Legislature and governor approved a massive dividend and energy payments totaling more than $2 billion. The state spent the money almost as fast as it arrived — don’t we wish we had those billions today?

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Like any temporary high, it felt good at the time, and politically, it was wildly popular. It also did absolutely nothing to solve Alaska’s long-term fiscal problems.

The temptation is coming

The state’s spring revenue forecast arrives in about two weeks. If oil prices remain elevated, the numbers will suddenly look far healthier than they did a month ago.

That’s when it gets tempting. Lawmakers will start talking about “surplus revenue.” Candidates for public office will promise bigger dividends. The governor’s allies will argue the state can suddenly afford everything. Don’t fall for it.

As longtime Alaska fiscal analyst Larry Persily recently wrote in the Alaska Beacon, rising oil prices quickly create a long list of spending ideas in Juneau. But the real question isn’t how much money might arrive — it’s how long it will last. And nobody knows the answer to that. War-driven oil spikes can disappear just as quickly as they arrive.

If Alaska receives a revenue windfall from this conflict, the state should treat it for what it is: a one-time shot in the arm.

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That means save it, invest it and strengthen the state’s fiscal stability.

Deposits into reserves like the Constitutional Budget Reserve — or even better, the Permanent Fund — would help rebuild the savings Alaska burned through during the last decade of deficits. Strategic investments in infrastructure, education and economic development would strengthen the state long after oil prices fall again.

What Alaska should not do is hand the entire windfall to voters as a massive dividend. That’s not fiscal policy. That’s a sugar rush.

A simple message for Juneau

There is nothing wrong with Alaskans benefiting when oil prices rise. Oil built this state, and its revenues still help pay for essential services. But relying on war-driven price spikes to fund giant dividends is reckless.

This moment will test the discipline of Alaska’s leaders. The attack on Iran may deliver Alaska a sudden burst of revenue. But the state’s long-term problems — structural deficits, unstable revenue and growing needs — will still be there long after oil prices settle down.

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So here’s the message the governor and the Legislature need to hear: If this windfall arrives, don’t blow it the way you did last time.

Save it. Invest it. And for once, resist the urge to torch the cash in the middle of an election year.





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