Alaska
Pentagon to take ‘sledgehammer’ to contracting program central to many Alaska Native corporations
Defense Secretary Pete Hegseth said the Pentagon will take aim at a contracting program that’s become a critical part of the business portfolios for many Alaska Native corporations.
“We’re actually taking a sledgehammer to the oldest DEI program in the federal government,” Hegseth said in a video posted to social media on Jan. 16, referring to diversity, equity and inclusion policies the Trump administration and its allies have attacked extensively.
He was referring to the 8(a) Business Development Program, overseen by the Small Business Administration. Established during the Civil Rights era, 8(a) is a “federal contracting and training program for experienced small business owners who are socially and economically disadvantaged,” according to the SBA.
The program has created substantial opportunities and benefits for Alaska Native corporations, the regional and village entities established under the Alaska Native Claims Settlement Act to benefit tribal members holding shares in the companies. The most lucrative of those benefits is access to no-bid federal contracts, with none of the dollar limits that many other 8(a)-eligible companies are subject to, and fewer restrictions on subsidiary activities.
The head of the Native American Contractors Association, a group representing Indigenous-owned companies dealing with federal contracts, said the organization is willing to work with the Pentagon on improving the 8(a) program, but disputed the assertion it is a “DEI program.”
Members of Alaska’s congressional delegation say they support the program, and are working with the Trump administration on the issue.
Speaking in general terms, Hegseth said the program’s stated goals are “laudable,” but that 8(a) had morphed into “swamp code words for DEI race-based contracting.”
Hegseth said that effective immediately, the Pentagon would review all sole-source 8(a) contracts worth more than $20 million.
“If a contract doesn’t make us more lethal, it’s gone. We have no room in our budget for wasteful DEI contracts that don’t help us win wars,” he said in the video. “Second, we’re doing away with these pass-through schemes. We’ll make sure that every small business getting a contract is the one actually doing the work.”
The defense budget for 2026 is $901 billion, according to the Associated Press, which reported that earlier this month President Donald Trump demanded the 2027 military budget increase to $1.5 trillion.
Hegseth framed the move as part of the Pentagon’s broader “effort to transform our acquisition infrastructure” in ways that do not “line the pockets of Beltway fraudsters” or “advance the agendas of DEI apologists.”
The message added a culture war framing to an issue that, over the years, has drawn criticism from across the political spectrum. But members of the Trump administration, as well as some of its Republican allies, have stepped up their attacks on 8(a) over the previous few months.
Last June, the Justice Department announced guilty pleas from four men in a bribery scheme dating back to 2013 that involved unlawfully steering $550 million in federal contracts, enriching themselves in the process. Two of the four individuals had small businesses that were certified under the 8(a) program.
That case was held up as an example by U.S. Small Business Administrator Kelly Loeffler last summer, used as a justification for launching a “full-scale audit” of the 8(a) program.
“In recent years, SBA’s 8(a) Business Development Program has seen rampant fraud — and increasingly egregious instances of abuse,” Loeffler said in a prepared statement from June. “We must hold both contracting officers and 8(a) participants accountable — and start rewarding merit instead of those who game the system.”
In December, Republican Sen. Joni Ernst of Iowa sent letters to several government agencies flagging instances of contract awards that appear to violate federal laws.
“Unfortunately, the 8(a) program’s no-bid, unlimited sole-source contracts are a fraud magnet,” Ernst wrote to Interior Secretary Doug Burgum. “While there’s no doubt that the Biden Administration’s indifference toward 8(a) program integrity enabled swindlers and fraudsters to treat federal contracting programs like personal piggy banks, 8(a) program flaws have raised alarm bells for decades.”
Ernst cited four different Alaska Native corporations in her letters. The infractions alleged are violations related to SBA rules barring an 8(a) company from operating multiple subsidiaries working in overlapping industries at the same time.
In her letter to Hegseth, Ernst wrote that the “Pentagon awarded approximately $8.5 billion through the 8(a) program, including $6.5 billion in total 8(a) sole-source dollars and $2 billion in total 8(a) set-aside dollars.”
It’s not clear how many of those Defense appropriations, or similar ones from other government agencies, were paid to Alaska Native corporations. Tracking expenditures related to 8(a) is notoriously tricky, in part because the program is ingrained in so many separate federal entities and administered through dozens of regional SBA offices with no centralized data tracking, according to a 2016 Government Accountability Office report that looked specifically at Alaska Native corporations.
“Unlike most other 8(a) small businesses, ANC-owned firms receive an exclusion from affiliation with their larger parent corporation and therefore can be subsidiaries in large corporations that may have worldwide operation, annually generate revenues in the hundreds of millions of dollars, and provide a range of goods and services to federal procuring agencies,” the GAO authors wrote.
The report estimated that in 2014, the 8(a) program committed $4 billion worth of federal contracts to some 344 companies owned by Alaska Native corporations.
Critics, though, have long alleged that the preferential access to lucrative federal business under 8(a) has not translated to profitable dividend payments to Indigenous shareholders or improved circumstances at the community level in Alaska. A series of articles by the investigative outlet ProPublica published in 2010 and 2011 documented the rise in 8(a) contracts among Alaska Native corporations, which drastically outpaced increases among other eligible constituencies like Lower 48 tribes.
“While contracting dollars to 8(a) firms grew nearly fivefold from 2000 to 2009, money to ANC companies in the program increased more than twentyfold — from $280 million to $5.7 billion — thanks to a rule that allows them to obtain no-bid contracts of unlimited size,” ProPublica reporter Michael Grabell wrote in one of the series’ stories.
Quinton Carroll, executive director of the Native American Contractors Association, wrote in a statement that the organization is committed to preventing waste and fraud. He disputed the thesis of Hegseth’s remarks.
“Native participation in the SBA 8(a) Program is not a DEI initiative. It is grounded in the unique political and legal status of Tribal Nations under U.S. law and fulfills longstanding federal trust and treaty obligations to Tribes, Alaska Native Corporations, and Native Hawaiian Organizations,” Carroll wrote in an email Thursday.
He added that the 8(a) program had eliminated racial preference in awards as of 2023.
“As this process moves forward, it is critical that oversight efforts preserve a program that has proven its value — strengthening national security, reinforcing the defense industrial base, and supporting economic growth in Native and surrounding communities,” Carroll said.
Besides audits and reviews, it’s not clear what permanent or legislative actions Hegseth and other agencies will take.
In the meantime, Alaska’s three Republican members of Congress say they remain staunch supporters of the 8(a) program.
“My office is actively working with the Administration, Alaska Native Corporations, and their trade organizations to ensure Washington fully understands the unique history of Alaskan participation in the 8(a) program,” Rep. Nick Begich wrote in an email Tuesday. “I am committed to continue engaging directly with Administration officials to ensure that any reforms strengthen the mission and economic opportunities that 8(a) has long provided for Alaska and the nation.”
A spokesperson for Sen. Dan Sullivan said the senator had used his position on the Senate Armed Services Committee to get commitments from Pentagon appointees “affirming that they would work to strengthen the (Department of War’s) work with 8(a) firms.”
“The senator had a productive conversation with Secretary Hegseth on these issues this weekend and will continue direct engagement with the secretary and other senior DOW officials as they look to review the 8(a) program,” said Amanda Coyne, Sullivan’s communications director, on Tuesday.
Sen. Lisa Murkowski said that overall, the 8(a) program “promotes economic self-sufficiency in some of the most geographically and economically isolated communities across the nation.”
She added that she’d received clarification from the Small Business Administration that Executive Order 14151 — Trump’s day-one policy on “Ending Radical and Wasteful Government DEI Programs and Preferencing” — doesn’t apply to the activities or businesses of Alaska Natives or American Indians.
“Oversight of all federal programs is necessary but it should not undermine lawful participation in a program that delivers high quality services to the federal government and that supports Native communities,” Murkowski said Thursday.
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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