Alaska
Alaska Senate passes draft budget, confirming $175M in bonus public-school funding
The Alaska Senate on Wednesday approved a draft $12.25 billion state operating budget and in the process, finalized legislative plans to offer public schools a one-time, $175 million funding bonus.
The Senate’s proposed Permanent Fund dividend is about $1,580 per recipient, including an estimated $222 energy relief payment. That’s below the $2,270 figure included in a competing draft passed by the House, and the final figure will be subject to further debate.
The smaller amount reduces the risk of the state spending down savings.
“We’re living within our means. This is what it looks like,” said Sen. Bert Stedman, R-Sitka and co-chair of the Senate Finance Committee.
Stedman said the budget balances if the state’s oil production hits estimates and if North Slope oil prices average $78 per barrel between July 1, 2024, and June 30, 2025.
Oil and other sources of revenue would be enough to pay for state operations, as well as new legislation and the state’s capital budget, which pays for construction and renovation projects statewide.
Wednesday’s 17-3 vote, which follows the state House’s passage of its own draft operating budget, triggers the final phase of the Alaska Legislature’s annual budget process, where legislators negotiate a compromise between the two drafts.
In places where the drafts match, the relevant item is final, except that Gov. Mike Dunleavy has the ability to reduce or eliminate final items with his line-item veto power. He cannot increase them or add new ones.
On education, the Senate included a $680 one-time boost to the state’s Base Student Allocation, the core of Alaska’s per-student funding formula.
That’s worth about $175 million statewide, and the same language is in the House’s draft budget, making the item final, except for the governor.
Last year, Dunleavy vetoed half of an identical one-time boost, but in a news conference with reporters on Wednesday, the governor signaled that he may not repeat his veto.
“I’ve told people I’m open to the increase,” Dunleavy said, “an increase in one-time funding, especially to help with the inflationary issues.”
The Senate budget also includes a House-adopted plan to spend $5.2 million more on reading programs for students in kindergarten through third grade.
Senators included additional money for student transportation, something that will have to be negotiated with the House, which did not include it.
Also subject to further negotiation is $11.9 million in education money added after the federal Department of Education warned that the state underfunded some school districts during the COVID-19 pandemic.
The Senate is led by a supermajority of nine Democrats and eight Republicans, and Wednesday’s draft budget was crafted by that supermajority.
Before the final vote, the three Republicans outside the majority offered 21 amendments containing a variety of priorities, but all failed.
The most contentious amendments dealt with the amount of this year’s Permanent Fund dividend, which Stedman labeled “the focal point of most budgets.”
Sen. Mike Shower, R-Wasilla, proposed taking extra money from the Alaska Permanent Fund to increase the Senate’s proposed dividend to a figure above the House’s amount, once the energy relief payment is included.
While much of the fund is constitutionally protected, lawmakers need only a simple majority to break a law that limits spending from the fund’s earnings reserve, which contains money accumulated from the fund’s investments.
Shower said his proposed dividend is what was recommended by a bipartisan, bicameral working group and implied that passage could encourage work on a plan to bring the state’s long-term finances into balance.
He had support from Sen. Shelley Hughes, R-Palmer, who said, “If we were to pass this, we would start on the road toward a fiscal plan.”
But a majority of other senators opposed the idea. Stedman said he believed the amendment would instantly create a billion-dollar deficit.
“I don’t think this is a prudent amendment,” he said.
Sen. Forrest Dunbar, D-Anchorage, said he’d like to see larger dividends, but thus far, the Legislature hasn’t advanced other needed components of the financial plan, including new state revenue.
Shower’s amendment failed, 6-14.
The House and Senate are expected to appoint lawmakers to a budgetary conference committee on Monday, starting work on a final budget draft.
The budget is typically the final item passed before the Legislature adjourns for the summer.
WHEREAS, on June 3, 1942, six months after the attack on Pearl Harbor, World War II arrived in Alaska when Dutch Harbor on Amaknak Island was bombed by Japanese – the first aerial attack by an enemy on the continental United States; and
WHEREAS, the Japanese pilots expected little resistance; but because of an intercepted message three weeks earlier, the installation was on high alert, and Navy and Marine personnel were prepared with anti-aircraft defenses; and
WHEREAS, encountering unexpected resistance at Dutch Harbor, installation, Japanese forces shifted their focus to the Margaret Bay Naval Barracks, where the attack claimed the lives of 25 servicemen; and
WHEREAS, following the initial attack on Dutch Harbor, Japanese forces launched additional assaults on Dutch Harbor, Adak, Kiska, and Attu, resulting in the Aleut people being evacuated and held in internment camps in Southeast Alaska for three years, through which many did not survive; and
WHEREAS, the brave soldiers of the United States Armed Forces and allied Canadian Forces fought valiantly for more than a year to reclaim the remaining Aleutian Islands. The battle of Attu stands as one of the most costly American assaults in the Pacific, with hundreds of servicemen making the ultimate sacrifice to liberate Alaska; and
WHEREAS, on the 84th anniversary of the bombing of Dutch Harbor, we remember and honor all who were affected by the attack, paying tribute both to the military personnel who served and died to defend our Nation and to the Aleut people who died while imprisoned.
NOW THEREFORE, I, Mike Dunleavy, GOVERNOR OF THE STATE OF ALASKA, do hereby proclaim June 3, 2026, as:
Dutch Harbor Remembrance Day
in Alaska and encourage all Alaskans to join with the people of Dutch Harbor, Unalaska, and the Aleutian Islands to honor all who were lost in Alaska during World War II, and I order the Alaska State Flag to be flown at half-staff in remembrance of those who perished.
Dated: June 3, 2026
A plane belonging to the Alaska National Guard appears to have been damaged during operations connected to Operation Epic Fury as part of American military efforts against Iran, according to online reports. Defense officials have so far declined to confirm whether Alaska National Guard personnel or equipment are taking part in the campaign.
Last week, defense industry news outlet The War Zone published photos of a KC-135 Stratotanker transiting through a British airbase. In the pictures, made by photographer Andrew McKelvey, the rear bottom of the fuselage and wing stabilizers are “peppered with temporary shrapnel damage repairs‚“ according to The War Zone’s article. The plane also appears to be missing its refueling boom, the proboscis extending from under the tail to pump off fuel to other aircraft.
In the photographs, the Stratotanker’s tail number is visible, identifying the refueling plane as belonging to the Alaska Air National Guard’s 168th Wing, based at Eielson Air Force Base outside of Fairbanks. The wing’s mission includes aerial refueling. That’s the tactic of large planes unloading vast quantities of fuel to aircraft, ranging from fighter jets to rescue helicopters, in midair.
Pictures from a different photographer published last week by another blog, The Aviationist, show the same plane. The tail includes the letters “AK” painted above a white polar bear.
In addition to the photographs, the reporting from The War Zone is based on publicly available flight data and social media posts scraped from a variety of sources.
According to information from Flight Radar 24, the Stratotanker left Eielson on March 5, just days after the U.S. and Israeli militaries began bombing Iranian targets on Feb. 28. Through March, according to public flight records, the plane was based at Ben Gurion Airport southeast of Tel Aviv, where, according to The War Zone, dozens of American refueling aircraft were staged as part of Operation Epic Fury.
There are no public flight records connected to the Stratotanker through April and most of May, until it appeared to fly through England on the way to the United States at the end of last month.
It is not clear how many Alaska Air National Guard planes, personnel or units are currently deployed in connection to the war effort against Iran.
A spokesperson for the Alaska National Guard referred all questions about Operation Epic Fury to the U.S. Central Command.
A spokesperson for CENTCOM, headquartered at MacDill Air Force Base in Florida, declined to answer questions on the record or provide any specific information about Alaska National Guard units deployed as part of ongoing military operations, citing the need to protect service members and operational security.
The Alaska National Guard has posted no informational releases or pictures connected to an overseas deployment during the last few months.
Much of Operation Epic Fury has been waged by military aircraft, and aerial refueling is critical to keeping planes supplied during long flights. A May 12 report from the Congressional Research Service composed of public damage reports to U.S. military aircraft noted that among the 42 records of damage or losses were seven KC-135 Stratotankers, though the findings were published before photos emerged of the Alaska-based plane. The report noted that the Defense Department “has not published a comprehensive assessment of combat losses” from Operation Epic Fury.
The tail number is associated with a Stratotanker manufactured in 1964, the year before Boeing ceased making them. All of the nearly 400 KC-135s currently in operation within the American military date back to that era of the Cold War.
The aircraft has the word “Tetlin” painted on the top of its tail. The name is an homage to the Interior Alaska village, one of several selected to honor longstanding bonds between military aviators and Alaska Native communities, according to photographs of a dedication ceremony posted by the Alaska National Guard last summer.
The 168th Wing currently has 12 Stratotankers attached to the unit. That number bumped up in April after a long campaign by Alaska Republican U.S. Sen. Dan Sullivan to allocate more tankers to the state’s portfolio given its vast geography and high number of advanced fighter jets.
- Alaska Airlines is opening its newest Lounge at Portland International Airport, featuring thoughtfully designed spaces with twice the square footage and seating of the current space
- The new Lounge reflects the airline’s appreciation for its loyal guests and comes as Alaska continues to expand its service in Portland, offering more flights and more options for guests
- The investment to modernize the Portland Lounge is part of Alaska’s growing portfolio to elevate its global guest experience and expand its Lounge footprint, including new spaces in Seattle, San Diego and Honolulu
PORTLAND, Ore., June 2, 2026 /PRNewswire/ — Alaska Airlines is set to welcome guests to its newest Lounge at Portland International Airport (PDX) when it officially opens on June 4, underscoring its continued investment in premium travel and one of the carrier’s key West Coast hubs.
After more than two years of construction, the approximately 14,000-square-foot Lounge will welcome guests with a warm, thoughtfully designed Pacific Northwest aesthetic, featuring an inviting fireplace and a striking wooden Mt. Hood mural by artist Ben Butler. At twice the size of the current Portland Lounge, it offers more than 230 seats, including Alaska’s Signature Loungers, along with high, open ceilings that bring in natural light and views of PDX’s new terminal. Guests can relax, enjoy fresh, regionally inspired food, sip barista-crafted beverages or cocktails from West Coast partners, or take advantage of ample power plugs and privacy booths for calls and meetings.
“Portland guests have chosen Alaska for years and played an important role in our growth in the Pacific Northwest,” said Shane Jones, senior vice president of fleet, products and guest experience. “This new Lounge is our way of thanking them and a reflection of our growing portfolio of premium guest experiences. We look forward to opening our doors this week and welcoming guests with the signature hospitality and thoughtful touches Alaska is known for.”
Alaska is the largest carrier serving Portland, operating more flights than any other airline, including more than 100 daily departures. Portland is a critical hub in Alaska and Hawaiian’s network with expanding service to over 60 destinations across North America and beyond. This summer, Alaska will launch year-round service to Everett/Paine Field and Pasco–Tri-Cities, along with seasonal service to Jackson Hole. Last month, new service began to Baltimore, Bellingham, Idaho Falls, Philadelphia and St. Louis. By this fall, Alaska will offer 50% more seats in Portland than just two years ago, reflecting strong demand for travel and the airline’s continued investment in the market.
“Our strong partnership with Alaska has helped to elevate the new PDX as a world-class destination that showcases the Pacific Northwest and makes everyone feel at home,” said Chris Czarnecki, PDX business and properties director. “We’re thrilled their new PDX Lounge is here for the long-haul, offering travelers a stunning spot to relax, recharge, and experience a taste of our region.”
The nearly $18 million investment in the Portland Lounge is part of Alaska’s growing Lounge footprint and broader commitment to enhancing the guest experience as it expands globally. Building on this investment, Alaska just announced its plans to open a landmark, more than 41,000-square-foot Lounge in 2027. The Lounge, which will be located in Seattle – home to the airline’s main hub – will be the largest in its network and among the largest airline lounges in the country. The airline is also designing its first Lounge in San Diego along with a new, expanded Lounge in Honolulu, both slated for early 2028.
Alaska Airlines Lounge members can access eight premium Lounges across the Alaska and Hawaiian Airlines network, including its largest Lounge in Seattle and additional locations at its hubs in Anchorage, Los Angeles and San Francisco. Alaska Lounge+ membership unlocks access to all Alaska Lounges, plus nearly 90 partner Lounges worldwide, including select oneworld and partner Lounges. To learn more or sign up to become an Alaska Lounge member, click here.
Frequently Asked Questions:
What is Alaska Airlines opening at Portland International Airport?
A: Alaska Airlines is opening a newly redesigned Lounge at Portland International Airport (PDX) on June 4, 2026, offering a larger, more modern space with premium amenities, regional food and beverage options, and enhanced comfort for guests.
How big is the new Alaska Lounge in Portland?
A: The new Lounge is approximately 14,000 square feet—about twice the size of the previous Portland Lounge—and features more than 230 seats.
What amenities are available in the new Alaska Lounge at PDX?
A: Guests can enjoy:
- Barista-crafted coffee and specialty beverages
- West Coast-inspired cocktails
- Fresh, locally inspired food
- Signature Lounge seating and private booths
- Ample power outlets and workspaces
- Relaxation areas with premium finishes
Who can access Alaska Airlines Lounges?
A: Access is available to:
- Alaska Lounge members
- Alaska Lounge+ members
- Eligible First Class guests
- Eligible oneworld and partner airline passengers
What is the difference between Alaska Lounge and Lounge+ membership?
A: Alaska Lounge+ membership includes access to all Alaska Lounges plus nearly 90 partner Lounges worldwide, while standard Alaska Lounge membership provides access to all eight Alaska-operated Lounges.
Why is Portland important to Alaska Airlines?
A: Portland is one of Alaska Airlines’ key West Coast hubs, with more than 100 daily departures and nonstop service to over 60 destinations across North America. By this fall, Alaska will offer 50% more seats in Portland than just two years ago, reflecting strong demand for travel and the airline’s continued investment in the market.
How is Alaska Airlines expanding its Lounge network?
A: Alaska Airlines is investing in multiple new and expanded Lounges, including:
- A 41,000+ square feet landmark Lounge in Seattle opening in 2027
- A new Lounge in San Diego
- An expanded Lounge in Honolulu
How much did Alaska Airlines invest in the new Portland Lounge?
A: Alaska Airlines invested nearly $18 million in the new Portland Lounge as part of its broader investment in premium travel as the airline continues to grow globally.
About Alaska, Hawaiian and Horizon
Alaska Airlines, Hawaiian Airlines and Horizon Air are subsidiaries of Alaska Air Group, and McGee Air Services is a subsidiary of Alaska Airlines. We are a global airline with hubs in Seattle, Honolulu, Portland, Anchorage, Los Angeles, San Diego and San Francisco. We deliver remarkable care as we fly our guests to more than 140 destinations throughout North America, Latin America, Asia, the Pacific and Europe. Guests can book travel at alaskaair.com and hawaiianairlines.com. Alaska and Hawaiian are members of the oneworld alliance. Members of our Atmos Rewards loyalty program can earn and redeem points with oneworld airlines and our additional global partners that serve over 1,000 worldwide destinations. Learn more about what’s happening at Alaska and Hawaiian at news.alaskaair.com. Alaska Air Group is traded on the New York Stock Exchange (NYSE) as “ALK.”
SOURCE Alaska Airlines
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