Mike Dunleavy

Governor Dunleavy vetoed multiple bills passed with bipartisan support by the Alaska Legislature, including election reform legislation and a public pension bill in the current year, as well as fiscal stability measures and education funding bills in previous years. The vetoes represent a pattern of rejecting compromise legislation across multiple legislative sessions. According to the letter, these executive actions have prevented the state from implementing various policy measures that had achieved bipartisan legislative approval.

A bill introduced by Juneau Democratic Rep. Sara Hannan to increase civil legal aid funding became law without Gov. Dunleavy's signature after passing with support from 27 of 40 House members and 17 of 20 Senate members. The measure allows one-quarter of court system filing fees to be appropriated annually to the civil legal services fund, directing approximately $400,000 in additional state funding toward legal representation for low-income Alaskans in civil cases including domestic violence protective orders, government benefit applications, and child support matters. The new law increases the allowable annual appropriation from court filing fees to $766,000, more than double the previous cap of 10 percent established in 2018.

Dunleavy vetoed a bill sponsored by Rep. Genevieve Mina that would have required the state to consider public transit in its statewide transportation planning process, which passed with support from 22 of 40 House members and 16 of 20 Senate members. In his veto message, Dunleavy stated that the legislation would produce no substantive changes to current transit planning since the state already conducts all activities the bill sought to codify, and that the measure inappropriately elevated a single mode of transportation above others in multi-modal planning. The veto marked the 12th bill Dunleavy has rejected since the start of the 2025 legislative cycle.

Dunleavy called a special legislative session with the stated objective of passing tax relief legislation to support the Alaska LNG project's construction. The governor favored a measure introduced by House Majority Leader Chuck Kopp that would have eliminated property taxes on the project and replaced them with a smaller gas tax, though the measure narrowly failed to pass. The Alaska LNG developer stated that financing for the 800-mile natural gas pipeline project remained contingent on legislative approval of a favorable tax agreement.

Governor Dunleavy called a special legislative session focused on advancing the Alaska LNG natural gas pipeline project following the conclusion of the regular legislative session on May 21, 2026. The special session began on May 22, 2026, after lawmakers adjourned the regular session, which had been marked by unexpected oil revenue from geopolitical events that facilitated passage of the state budget. The special session was convened to continue work on legislation related to the long-sought natural gas pipeline development.

Dunleavy vetoed corporate income tax legislation in September that would have updated Alaska's tax code to apply to online businesses. Lawmakers attempted to override the veto in January and later incorporated a corporate income tax update into Dunleavy's broader fiscal plan, which the legislature largely rejected. The legislature passed the corporate income tax bill on the final day of the 2026 session without Dunleavy's signature, and the measure is expected to raise up to fifteen million dollars in annual revenue by closing a tax loophole for out-of-state online companies beginning in 2027.

The Alaska Legislature passed a 65-page criminal justice package, HB 239, on May 19-20, 2026, with the Senate voting unanimously and the House voting 39-1 in favor. The bill consolidated 14 bills and two other provisions into a single package addressing over a dozen areas of criminal law and public safety, including raising the age of consent, increasing penalties for fatal hit-and-run offenses, criminalizing child sexual abuse material generated through artificial intelligence, and establishing stricter evidence processing timelines for sexual assault examination kits. The bill was transmitted to Dunleavy's desk for signature, veto, or no action, with the governor's office indicating it would require analysis by subject matter experts before a decision was made.

The Alaska Legislature passed HB 28, an education package that creates a state grant program to reimburse school districts for annual energy costs, with the state covering 100% of districts' energy funding beginning in 2028. The Senate approved the bill 17-3 on Tuesday, and the House concurred 34-6 on Wednesday, establishing a framework based on a three-year average of districts' heating, fuel, and electric expenses. The measure includes $29 million in energy relief payments for the current fiscal year and subjects future funding to annual legislative appropriation.

Governor Dunleavy opposed House Bill 16, which the Alaska Legislature passed in the final days of the 2026 legislative session to reinstate campaign contribution limits for candidates for legislative seats, governor, and lieutenant governor. The bill, sponsored by Rep. Calvin Schrage, would allow individuals to contribute up to $2,000 per election cycle and political groups up to $4,000 per election cycle, with limits adjusted for inflation. The legislation was designed to preempt a ballot initiative on the same subject that had been developed since 2023.

The Alaska Legislature passed a $12.8 billion balanced budget on the final day of the 2026 legislative session, which included $1,200 in cash payments to Alaskans consisting of a $1,000 Permanent Fund dividend and $200 in energy relief funded by unexpected oil revenue. Governor Dunleavy had earlier called on lawmakers to use a statute for calculating the Permanent Fund dividend that would have resulted in approximately $3,800 per eligible Alaskan, a payment that would have required drawing hundreds of millions of dollars from the state's primary savings account. The budget passed the House 21-19 along caucus lines and the Senate 17-3, with three minority members joining the majority in support.

Dunleavy vetoed House Bill 78, which would have created a defined-benefits pension system for Alaska's public employees including teachers and public safety officers for the first time since 2006. In his veto message, Dunleavy stated the pension plan contained unresolved legal, tax, administrative, and fiscal issues and would return unfunded liability risk to the state and participating employers. The Alaska Legislature failed to override the veto on May 19, 2026, with 33 of 60 lawmakers voting in favor, falling short of the 40 votes required.

Dunleavy called an immediate special legislative session to continue negotiations over legislation to advance the Alaska LNG natural gas pipeline project after negotiations with lawmakers broke down during the regular session. The breakdown occurred after Dunleavy vetoed a new public pension system that legislative leaders had prioritized, while lawmakers declined to adopt a new tax structure that Dunleavy had proposed in March to support the pipeline development. The special session was scheduled to begin the following morning, with Dunleavy stating that if lawmakers did not reach agreement within two days, an additional session would be called.

Dunleavy vetoed a bill that would have reinstated defined benefit pensions for Alaska's public employees, the first such reinstatement since 2006. In his veto message, Dunleavy stated that the pension plan contained unresolved legal, tax, administrative, and fiscal issues and would return unfunded liability risk to the state and participating employers. The veto came after failed negotiations between Dunleavy and House Majority Leader Chuck Kopp over legislation to grant tax breaks to developers of the Alaska LNG megaproject.

Dunleavy vetoed legislation establishing a new public pension plan on Monday evening after negotiations with House and Senate majority leaders over tax provisions for the Alaska LNG megaproject broke down as the legislative session neared its conclusion. The governor had offered to allow the pension bill to become law in exchange for lawmakers adopting a new tax regime for the gas line that adhered to his specifications. Following the veto, House Majority Leader Chuck Kopp stated that amendments made to competing Alaska LNG legislation would kill the deal with Dunleavy.

Dunleavy proposed a tax change for the Alaska LNG pipeline project that would eliminate property taxes on the megaproject and replace them with a volume-based tax tied to gas flowing through the pipeline. The governor's office stated that the tax proposal would benefit the state through job creation, lower energy costs, and long-term revenue that would otherwise be unavailable. The proposal emerged as the state considered major tax changes for a project whose financing structure and risk allocation remained unclear to the public.

Alaska lawmakers reached a budget compromise that includes a Permanent Fund dividend of $1,000 for eligible Alaskans and a $200 energy relief payment. The conference committee of three House members and three Senate members negotiated the spending plan, which allocates excess revenue from higher-than-projected oil prices toward these payments. Dunleavy's revenue officials had projected over $500 million in previously unexpected receipts in the current fiscal year, enabling the legislature to include both chamber priorities in the budget before the legislative session ended.

Dunleavy engaged in negotiations with legislative leaders regarding a bill to advance the Alaska LNG megaproject during the final days of the 2026 legislative session. Dunleavy argued that substitute versions of the bills in both chambers did not sufficiently reduce the tax burden on the project and provide adequate incentives for investment and construction. Dunleavy worked with House Majority Leader Chuck Kopp and former U.S. Senator Mark Begich, who was employed as a lobbyist for the project, on developing a new version of the legislation.

The Alaska House adopted a capital budget allocating nearly $150 million toward K-12 school building repairs and construction, more than doubling Governor Dunleavy's original proposal of $159 million in state infrastructure spending. The bill directs nearly $350 million in total state funds to infrastructure investments across the state, with funding based on ranked maintenance lists produced by the state education department, university system, and courts. The budget also allocates $32 million toward deferred maintenance of University of Alaska facilities and includes separate funding for Mt. Edgecumbe boarding school in Sitka.

The Alaska State Legislature voted to reject Hannah Mielke, Governor Dunleavy's appointee to the public seat on the State Medical Board, by a vote of 47-13 during a joint legislative session on Thursday. Mielke, a high school graduate who began working as an executive office assistant in Dunleavy's office in 2024, faced questioning from lawmakers regarding her age and lack of experience in the medical field. The Legislature approved three other Dunleavy appointees to the board, including physicians Michael McNamara and Robert Skala and physician assistant Norman Walker.

The Alaska Legislature voted 29-31 on May 14, 2026, to reject Stephen Cox, Governor Dunleavy's nominee for attorney general, marking only the second cabinet-level rejection in state history. Following the rejection, Dunleavy appointed Cox to a newly created position as counsel to the governor, where he would advise on legal, regulatory, and constitutional matters affecting the state. Dunleavy simultaneously appointed Cori Mills, a 14-year Department of Law attorney who most recently served as deputy attorney general, to serve as acting attorney general.

Dunleavy delayed introducing legislation related to tax incentives for the Glenfarne liquefied natural gas project until March and subsequently threatened to call a special legislative session if the bill was not approved before the end of the regular session in May. The proposed legislation would establish an alternative volumetric tax structure for the project, which would reduce state property tax revenue. Dunleavy's threatened special session was contingent on the Legislature's failure to pass the measure before the regular session concluded.

The Alaska Legislature passed Senate Bill 89 on May 12, 2026, with the Alaska Senate approving it 18-2 and the Alaska House approving it 38-2, sending the legislation to Governor Dunleavy for signature or veto. The bill formalizes physician assistant duties in state law rather than regulation and allows PAs to work more independently in facilities licensed by the Alaska Department of Health without requiring a cooperative agreement with a physician. PAs working in non-licensed facilities would continue to be required to maintain such agreements under the legislation.

Dunleavy signed legislation establishing Hispanic Heritage Month in Alaska, a measure that mirrors the federal designation created by President Ronald Reagan in 1988 and designates September 15 through October 15 as the observance period. The bill was sponsored by Anchorage Democratic Senator Elvi Gray-Jackson and passed the state Senate unanimously and the House with 36 votes in support. Dunleavy's office stated the governor signed the legislation to recognize the traditions, history, and achievements of Hispanic Americans, a community comprising approximately 7.7 percent of Alaska's population according to census data.

Governor Dunleavy identified a measure facilitating tax breaks for a proposed natural gas pipeline as his top legislative priority during the 2026 Alaska legislative session. Senate President Gary Stevens and House Speaker Bryce Edgmon stated that lawmakers would likely not have sufficient time before the constitutional May 20 end-of-session deadline to pass the bill to Dunleavy's desk. Dunleavy's spokesperson Jeff Turner indicated that the governor believed time remained in the regular session for legislators to pass the measure and did not express an intent to immediately call a special session to address the issue.

Dunleavy vetoed Senate Bill 64, legislation that would have implemented broad election system reforms including ballot curing and ballot tracking provisions, citing concerns about implementation feasibility before the November general election. Days after the Legislature failed to override the veto, Dunleavy introduced a new elections bill that included a signature verification process and delayed implementation past the general election. Dunleavy stated in an accompanying letter that the new bill built on the work of Senate Bill 64 while providing the Division of Elections additional time and resources for implementation.

Governor Dunleavy urged the Alaska Legislature to quickly pass legislation providing a substantial property tax break to LNG developer Glenfarne for the Alaska LNG megaproject in March 2026. Dunleavy stated he would call a special session if the Legislature failed to pass a bill he deemed workable for project financing. Senate leadership expressed skepticism about completing the bill before the May 20 session end date, citing concerns about potential errors from rushed deliberation.

The Trump administration transferred 1.4 million acres of federal land to the state of Alaska to support construction of the 200-mile Ambler Road and the proposed Alaska LNG pipeline project. Governor Dunleavy stated that the transfer would advance Alaska's ability to develop its resources and create economic opportunity. The land transfer followed a February action by the Trump administration that revoked two 1970s-era public land orders that had previously prevented conveyance to the state and mineral exploration in the region.

Dunleavy criticized bills adopted by the House and Senate resources committees regarding the Alaska LNG megaproject, stating they did not provide sufficient support compared to his original March proposal. The bills increased revenue from Dunleavy's proposed alternative volumetric tax based on gas volumes shipped, which would replace property taxes on the project. Dunleavy said he wanted lawmakers to reach agreement on legislation as the legislative session approached its conclusion.

Dunleavy vetoed a comprehensive elections reform bill that would have implemented systemic changes to Alaska's election system, including a new ballot tracking and curing system, creation of a rural liaison position within the Division of Elections, and streamlined voter roll maintenance procedures. The Alaska Legislature voted 38-22 on Monday to sustain the veto, falling two votes short of the 40-vote supermajority required to override it. Dunleavy cited implementation concerns in his veto letter, stating the Division of Elections had warned that the changes would be extremely difficult to implement securely before the 2026 elections.

Governor Dunleavy appointed Stephen Cox as attorney general in August 2025. Cox appeared before the Alaska Senate State Affairs Committee and Judiciary Committee in late April 2026 for confirmation hearings, where lawmakers questioned his role in the state's decision to share voter information with the U.S. Department of Justice and his understanding of Alaska's constitutional right to privacy. Cox stated that the Division of Elections was authorized to divulge voter information to government officials for governmental purposes under state statute.

Governor Dunleavy requested the deployment of Alaska National Guard troops to Washington, D.C. in November 2025 as part of a Trump administration initiative to enhance public safety in the nation's capital. Approximately 25 Alaska soldiers and airmen were dispatched in May 2026 to provide support functions including crowd management, perimeter security, and logistical and communications support to the Metropolitan Police Department and federal agencies. The deployment followed Trump's August declaration of a "crime emergency" in Washington, D.C., and National Guard troops from multiple states were similarly sent to assist law enforcement efforts.

The Alaska Legislature voted on April 29, 2026 to send legislation reinstating a defined benefit pension system to Governor Dunleavy's desk after lawmakers approved changes made in the Senate. The bill would restore guaranteed retirement income for state employees, teachers, and public safety officers for the first time since 2006, when the state closed its pension system due to an unfunded liability. Dunleavy had not publicly indicated whether he would sign the measure at the time of its passage.

The Alaska Senate passed House Bill 78 on Tuesday in a 12-8 vote, legislation that creates a new pension option for the state's public employees after the Senate spent months amending the measure. The bill addresses consequences of a 2006 decision that eliminated Alaska's guaranteed pension plan and replaced it with a 401(k) style plan. The legislation must return to the House for a vote on whether to accept the Senate's amendments before it can proceed further.

The Alaska House Resources Committee revised Governor Dunleavy's Alaska LNG bill on April 28, 2026, proposing a smaller alternative volumetric tax designed to generate increased revenue for local communities and the state compared to Dunleavy's original measure. Dunleavy's initial bill, introduced in March 2026, sought to replace state and local property taxes with a volumetric tax based on gas flow to support the Alaska LNG megaproject. The House committee's substitute bill passed without objection and represents a modified approach to the tax structure governing the 800-mile pipeline project estimated at $46 billion.

Governor Dunleavy's appointee John Wood withdrew his name from consideration for the Alaska Judicial Council ahead of a scheduled confirmation hearing before the House Judiciary Committee in April 2026. Wood had been appointed to a six-year term on the council in May 2025 but faced legal challenges questioning his eligibility to occupy one of the three public seats reserved for non-attorneys, as he held a law degree and had been a member of the Alaska Bar Association since 1972, though a Superior Court judge had ruled in his favor in October 2025. Wood stated his resignation was due to his age and the time commitment required rather than the surrounding controversy.

The Trump administration selected seven port projects in Alaska to receive $115 million in federal grants for infrastructure improvements and construction. The projects include $4.7 million for engineering studies at the Don Young Port of Alaska in Anchorage, $34 million for Port MacKenzie expansion, $20 million for tunnel upgrades to the Port of Whittier, and improvements to ports in Homer, Skagway, and Chevak. Governor Dunleavy issued a statement welcoming the grants, stating they would modernize infrastructure and strengthen supply chains.

Dunleavy appointed Veronica Lambertsen to one of four public positions on the Alaska Police Standards Council in August 2025. Lambertsen resigned from the position on Thursday following a Senate Judiciary Committee hearing during which lawmakers questioned her about social media posts containing conspiracy theories, including statements denying the Holocaust occurred. The council enforces standards for police, correctional, probation and parole officers in Alaska and investigates officer misconduct.

The Alaska Senate Finance Committee introduced a revised state operating budget that reduced the Permanent Fund dividend from $1,500 to $1,000 per recipient while adding a potential $150 energy relief payment contingent on available revenue. The committee eliminated a $158 million one-time funding boost for K-12 schools approved by the House and instead proposed redirecting up to $100 million in unexpected oil revenue to school districts based on oil price projections. These changes reduced the overall budget deficit by $300 million for the fiscal year beginning in July.

Dunleavy proposed a property tax cut for the Alaska LNG megaproject, which the Alaska Senate Resources Committee revised significantly in April 2026. The committee's substitute bill retained Dunleavy's proposed property tax elimination but added an $800 million community impact fee and increased the volume-based tax from approximately $75 million to $610 million annually at full project operation. Dunleavy's office stated the revised measure could endanger the project and prevent benefits including lower energy costs and new economic opportunities.

The Alaska Senate unanimously adopted a capital budget bill that allocates $247 million in state general funds for maintenance and construction projects across state-owned facilities, an increase of $88 million from Governor Dunleavy's initial proposal of $159 million. The budget prioritizes deferred maintenance at K-12 schools, universities, and courts, with $57 million designated for K-12 maintenance projects selected from the education department's ranked list. The Senate bill was sent to the House for consideration following its passage on Tuesday.

Alaska Governor Mike Dunleavy was appointed to the U.S. Arctic Research Commission, becoming the first sitting governor to serve on the seven-member body that advises the president and Congress on Arctic research policy. The appointment was announced by the commission and comes as the federal agency shifts its focus from environmental science toward military defense and economic development. Dunleavy's appointment followed the termination of Liz Qaulluq Cravalho's position on the commission five months earlier.

Senate Bill 64, election reform legislation that the Alaska Legislature sent to Governor Dunleavy's desk, includes provisions for ballot tracking with unique barcodes, prepaid return envelopes, ballot curing procedures, voter roll cleanup using federal data, stronger penalties for election crimes, signature verification technology, and regular audits with public reporting. The bill's provisions align with proposals that Dunleavy himself introduced in January 2022 through Senate Bill 167, which called for the same framework of election administration measures. The legislation was developed with input from Representative Sarah Vance and former Senator Mike Shower, both of whom focused on election integrity provisions throughout the legislative process.

President Trump called on Alaska voters to repeal ranked choice voting through a post on Truth Social on April 11, 2026, ahead of a November 2026 ballot measure seeking to eliminate the voting system. Trump expressed complete and total support for the repeal effort and identified Governor Dunleavy among Alaska Republican leaders he characterized as "America First Patriots" working to strike down the voting system. Dunleavy was listed alongside other state officials and candidates supporting the repeal initiative, which follows a failed 2024 repeal effort that lost by 737 votes.

Dunleavy signed a supplemental budget bill on April 10, 2026, that increased state spending by $450 million during the current fiscal year to fund transportation projects, fire suppression, disaster response, and higher education scholarships. The bill's passage followed negotiations between lawmakers regarding whether to finance the new spending from state savings or from higher-than-expected oil revenue resulting from elevated global oil prices. The state's Department of Revenue had projected more than $500 million in additional revenue for the fiscal year ending in June, though officials cautioned that oil price volatility could affect the projection.

The Alaska House Finance Committee approved a draft operating budget on April 3, 2026, that included a statutory Permanent Fund dividend payment of approximately $3,800 per eligible Alaskan, contingent on lawmakers accessing the Constitutional Budget Reserve. The 6-5 committee vote, which included support from House Finance co-chair Rep. Neal Foster, proposed drawing $2.4 billion in state funds for the annual payments, including $1.4 billion from the reserve account. The dividend plan would guarantee recipients approximately $1,500, with the remaining portion of the statutory amount payable only if the reserve is accessed through a three-fourths legislative majority vote in both chambers.

The Alaska Senate passed a resolution on April 1, 2026, that would lower the threshold required for the Legislature to override gubernatorial vetoes on spending bills from three-fourths to two-thirds majority if approved by voters. Currently, Alaska requires 45 of 60 votes to override revenue and appropriation bill vetoes, while other legislation requires only 40 votes for override. The resolution passed with 14 Senate votes along caucus lines and would appear on the 2026 general election ballot as a proposed constitutional amendment if approved by the House.

Dunleavy introduced legislation on March 20 to reduce property taxes on the Alaska LNG megaproject by replacing the existing property tax rate with an alternative volumetric tax based on gas-flow volumes that would not take effect until the project reaches specified production thresholds. Five borough mayors whose jurisdictions would host portions of the project testified before the Senate Resources Committee that the bill, as written, reduces local tax revenue too substantially and would inadequately fund increased demands on municipal services from the influx of workers. The mayors stated they support the project and the principle of tax relief but indicated continued negotiations with the governor's office to reach a different arrangement.

Governor Dunleavy requested that the Alaska Legislature follow the existing statutory formula for calculating the 2026 Permanent Fund dividend, which would result in a payment of approximately $3,650 per eligible resident at a cost exceeding $2.2 billion to the state. The calculation would require drawing more than $1 billion from state savings while maintaining basic government services. Lawmakers from both parties indicated that a dividend of that magnitude was not feasible for the fiscal year.

An elections measure passed by the Alaska Legislature and sent to Governor Dunleavy's desk includes provisions for ballot tracking and ballot curing, which allow voters to monitor their ballots and correct errors before counting. The bill expands voting access by funding return postage for absentee ballots, adding tribal IDs as acceptable identification, and establishing a rural liaison position to address logistical challenges in off-road-system communities. The measure also updates election security procedures, including penalties for election interference and earlier ballot processing.

Dunleavy vetoed legislation in 2024 that would have required insurance companies to cover a full year's supply of birth control pills rather than limiting coverage to monthly or three-month supplies. Lawmakers reintroduced similar legislation in 2026 after the veto, with sponsorship from the Senate Health and Social Services Committee. In his veto letter, Dunleavy stated that contraceptives are widely available and that requiring yearlong insurance coverage constitutes bad policy, though his office did not provide additional explanation for this characterization.

The Alaska Legislature approved $450 million in supplemental spending for fiscal year 2026, with the spending plan passing 40-0 in the House and 19-1 in the Senate on March 25, 2026. The budget includes funding for transportation projects, disaster response, fire suppression, higher education scholarships, and agency operations, contingent on sustained oil revenue from elevated crude prices. The Legislature failed to approve a contingent draw from the Constitutional Budget Reserve, which required a three-fourths supermajority but received only 22-18 support in the House despite passing 16-4 in the Senate, and the bill was transmitted to Governor Dunleavy without that provision.

The Alaska Legislature passed a sweeping elections reform bill and sent it to Governor Dunleavy's desk on March 26, 2026, following years of bipartisan negotiations between lawmakers. The bill establishes a ballot curing process allowing voters to correct minor mistakes on ballots, streamlines the removal of inactive voters from state rolls, enables ballot tracking by phone and email, adds tribal IDs as acceptable voting identification, and removes various documents such as hunting licenses and utility bills from the list of acceptable voter identification. Dunleavy had not publicly announced whether he would sign or veto the legislation at the time of the article's publication.

Dunleavy's office hired former U.S. Senator Mark Begich under a one-year, $100,000 contract through the lobbying firm Brownstein Hyatt Farber Schreck to advocate for the Alaska LNG megaproject. Begich, who previously worked on the project under contract with the Alaska Gasline Development Corp., presented the project's benefits to the Alaska House Resources Committee alongside officials from developer Glenfarne and the state agency. The arrangement represents a shift in funding for the project's promotion from the state agency to the governor's office as Glenfarne assumed primary development responsibility.

The Alaska House Finance Committee introduced an operating budget draft on March 25, 2026 that would guarantee a $158 million increase in public school funding for the next fiscal year by raising the Base Student Allocation from $6,660 to $7,290. The proposal follows Dunleavy's vetoes of a base formula increase the previous year, which lawmakers overrode twice to implement a roughly $175 million increase in base spending. Committee members indicated that if the bill increasing the formula does not pass, they would seek an equivalent amount of one-time funding to be included in the coming year's budget.

The Dunleavy administration proposed disposing of the Matanuska, Alaska's oldest ferry in operation since 1963, to reduce state operating expenses by approximately $800,000 monthly. Transportation Commissioner Ryan Anderson cited a $78 million budgetary shortfall in the Alaska Marine Highway System resulting from delays in a federal grant from the Federal Transit Administration's ferry funding program. The administration recommended borrowing from the following year's operating budget to maintain ferry operations while awaiting the federal grant award.

Dunleavy introduced legislation in the Alaska state Legislature that would eliminate property taxes on the Alaska LNG megaproject and replace them with an alternative tax structure generating lower revenue. According to legislative review, the measure could result in over one billion dollars in lost potential state revenue, and municipal officials indicated that local governments hosting project infrastructure would experience significant reductions in property tax income. Dunleavy stated the bill aims to remove financial barriers to project construction, citing long-term state benefits including jobs, affordable gas supply, and production tax and royalty revenue projected at $26 billion over thirty years.

Dunleavy requested a $373 million supplemental budget bill that included approximately $70 million for transportation funding, $80 million for disaster recovery, $98 million for fire suppression, and $130 million for higher education scholarships. The bill passed the Alaska Senate unanimously but stalled in the House after minority Republicans blocked a proposed draw from the Constitutional Budget Reserve to cover the spending. Legislative leaders appointed a conference committee to negotiate a resolution between the chambers regarding how to fund the supplemental budget items.

The state of Alaska received federal approval for its plan to distribute nearly $630 million from the Broadband Equity, Access, and Deployment program to more than a dozen companies to expand internet service across the state. The funding will extend high-speed internet service of at least 100 megabits per second to more than 46,000 homes and businesses in unserved and underserved areas, including rural locations and the outskirts of major cities. Governor Dunleavy stated in response that the program would enable Alaskans to access jobs, education, business opportunities, and healthcare services.

Dunleavy wrote directly to President Donald Trump urging that Ukrainian refugees who have established lives and careers in Alaska be permitted to remain in the state. In February 2022, following Russia's invasion of Ukraine, Dunleavy issued a public statement condemning the invasion and affirming Alaska's readiness to welcome displaced Ukrainians. Dunleavy's sustained support for Ukrainian refugee resettlement has continued through subsequent actions and advocacy to extend protections for these populations.

The Trump administration's suspension of the United States refugee resettlement program has significantly reduced arrivals in Alaska, where the state previously welcomed an annual average of more than 450 refugees between 2022 and 2024, largely from Ukraine, Venezuela, the Democratic Republic of Congo, Colombia, and Guatemala. Following Trump's executive order suspending the refugee resettlement program on his first day in office in January 2025, Alaska now receives fewer than 10 new refugees total, consisting only of Afrikaners from South Africa, the only group the U.S. is currently resettling. The reduction has created operational upheaval for refugee resettlement providers in Alaska, including Catholic Social Services, which historically placed and resettled refugees in the state.

In 2019, Dunleavy advanced a crime bill that reversed provisions of Senate Bill 91 and strengthened criminal penalties across multiple offenses while expanding law enforcement capacity through additional state troopers and Village Public Safety Officers. The legislation resulted in increased arrests and prosecutions, leading to a larger incarcerated population. The state's Department of Corrections budget subsequently grew to approximately $523 million, the largest in state history, reflecting the costs of implementing the expanded criminal justice policies.

Governor Dunleavy approved a request from the U.S. Secretary of the Army in November 2025 to deploy 100 Alaska National Guard service members to Washington, D.C., as part of a joint federal task force supporting civil disturbance operations directed by the Pentagon to all 50 states. The Alaska National Guard announced in March 2026 that the planned deployment, initially scheduled for that month, has been rescheduled to May 2026. The service members are expected to remain stationed in the nation's capital through the end of the year as part of broader federal efforts in the district.

Governor Dunleavy announced plans to introduce legislation supporting the Alaska LNG megaproject, which would transport natural gas 800 miles from the North Slope to Southcentral Alaska and deliver liquefied natural gas to Asian markets. The proposed bill would establish a Payment in Lieu of Taxes mechanism through which the project would make payments as a substitute for property taxes owed to municipalities and the state. Dunleavy made this announcement during a meeting with U.S. Interior Secretary Doug Burgum at Ted Stevens Anchorage International Airport on March 12, 2026.

In January 2026, Dunleavy sent a letter to President Trump requesting that Ukrainian refugees be permitted to remain in Alaska, citing the state's labor shortage and upcoming infrastructure and resource development projects. Dunleavy's letter emphasized that Ukrainian refugees already residing in Alaska could provide a skilled workforce needed for energy and development initiatives aligned with the Trump administration's agenda. The request followed advocacy by Alaska's congressional delegation and preceded reports that some Ukrainian refugees in Alaska had their humanitarian parole status renewed in February 2026.

Dunleavy's recreational marijuana task force, convened in 2022, made recommendations that formed the basis for proposed legislation to restructure Alaska's marijuana taxation system. Representative Ashley Carrick introduced HB 91, which would phase out the existing $50 per ounce cultivation tax and replace it with a 6% sales tax on consumers. The bill represents an effort to address revenue decline and structural challenges in Alaska's regulated cannabis market.

Dunleavy backed Senate Bill 150, legislation that would require utilities in Alaska's Railbelt region to implement new net metering rules for customers who generate renewable energy through solar and wind installations. Under the bill, customers would receive credits at the full retail rate for excess energy fed back to the grid on an annual basis, with credits able to roll over between seasons, rather than the current "avoided cost" rate compensation. The proposal would also establish a reimbursement fund, with appropriations to be determined by the Legislature, to compensate utilities for revenue impacts associated with the net metering changes.

The Alaska Department of Corrections budget has increased more than 54 percent since Governor Dunleavy took office, despite inmate populations remaining relatively stable, with this year's budget request exceeding $500 million for the first time. Dunleavy requested an additional $24 million be added to the department's existing $428 million appropriation, prompting lawmakers to reconsider sending Alaska inmates to private prisons in the Lower 48 as a cost-containment measure. Dunleavy had previously considered out-of-state prison transfers in 2019 but abandoned that plan.

Dunleavy called the Interior Department's decision to remove two public land orders a "major win" in a statement issued Friday. Interior Secretary Doug Burgess announced the removal of the longstanding orders to open 2.1 million acres of public land near Coldfoot and north of the Yukon River to potential development, which would support the proposed Ambler Road and Alaska LNG pipeline projects. The action is part of the Trump administration's effort to advance resource development in Alaska, including mineral extraction and liquefied natural gas infrastructure.

Dunleavy requested a spending bill to appropriate nearly $500 million in state funding to cover expenditures in the current fiscal year, partly to compensate for tens of millions of dollars in budget cuts he had previously made through vetoes of the Legislature-approved spending plan. The bill requires a draw from Alaska's Constitutional Budget Reserve, which necessitates a three-quarters vote in both chambers of the Legislature. House Republicans indicated disagreement with the bill as written, citing concerns about the rushed timeline and the inclusion of expenditures they believed should be deferred to the following year's budget.

In December, the Alaska Division of Elections signed a confidential memorandum with the U.S. Department of Justice that transferred Alaska's complete voter file, including names, dates of birth, addresses, and identification numbers, to federal officials. Under the agreement, Alaska committed to removing voters from its rolls within 45 days of receiving federal notification of alleged ineligibility, with flagged voters first placed on an inactive status. State officials characterized the arrangement as routine cooperation under the National Voter Registration Act, though election law experts raised concerns about compressed timelines potentially conflicting with federal voter protections.

Dunleavy vetoed Senate Bill 113, legislation that would have created a new funding source for public school programs by shifting corporate income tax payments to Alaska, expected to generate between $25 million and $65 million annually for reading instruction and career-technical education programs. The Alaska Legislature failed to override the veto on January 22, 2026, with a vote of 35-25, falling 10 votes short of the 45 needed for an override. Dunleavy stated his reason for the veto was his unwillingness to approve any tax measure that was not part of a comprehensive, long-term plan to balance state revenue and expenses.

Dunleavy proposed a comprehensive fiscal plan including Senate Bill 227, which would establish Alaska's first statewide general-purpose sales tax at 4% during summer months and 2% during winter months, effective through 2034, expected to generate approximately $815 million annually by Fiscal Year 2032. The proposal also included a constitutional amendment to guarantee a Permanent Fund dividend higher than recent legislative allocations but lower than scheduled under current law, along with a tightened state spending cap. The plan was introduced in the Senate Finance Committee on Monday with an identical version scheduled for House introduction, designed to address Alaska's structural budget deficit of nearly $1.5 billion in the proposed Fiscal Year 2027 budget of $7.75 billion.

Governor Dunleavy and the Alaska Legislature budgeted $171 million for the state's Alaska Marine Highway System ferry operations in 2026, with nearly $78 million expected to come from the Federal Transit Administration's rural ferry program grant. The federal government failed to issue the annual grant for fiscal year 2025, creating a funding shortfall that threatened a partial or total shutdown of the ferry system during summer 2026. State Department of Transportation officials indicated they were evaluating operational changes, including potential disposal of the Matanuska ferry and modifications to the summer schedule, pending receipt of federal funding expected in spring 2026.

Dunleavy has backed the proposed Alaska LNG pipeline, a natural gas project being developed by private company Glenfarne. In his State of the State address, Dunleavy stated that the pipeline was "closer to reality than ever" following Glenfarne's signing of a new agreement to advance the project's first phase. The pipeline project has drawn protests from environmental activists in Juneau, including members of Alaska Youth for Environmental Action.

Dunleavy appointed former state Rep. Tom McKay to serve as the public member on the Alaska Oil and Gas Conservation Commission in February 2026. McKay, a former drilling engineer who retired from ConocoPhillips in 2015 and served four years in the Alaska House of Representatives beginning in 2021, replaced Brett Huber Sr. on the quasi-judicial regulatory agency that oversees oil and gas operations in Alaska. McKay will receive an annual salary of $168,000 and cited his industry experience and work on carbon sequestration legislation as relevant to the commission's current priorities.

Governor Dunleavy introduced a tax bill in January 2026 that included a proposed statewide sales tax designed to help balance the state's long-term budget. The Alaska Senate Resources Committee substantially revised the bill on February 17, 2026, removing the sales tax and replacing it with increased taxes on oil and gas companies and other corporations, while also eliminating provisions that would have tied new revenue measures to spending limits. The revised bill made the tax changes permanent rather than temporary as originally proposed by Dunleavy.

Governor Dunleavy included the statutory Permanent Fund dividend in his budget draft, requesting lawmakers draw approximately $1.5 billion from state savings to fund a payment of roughly $3,800 per eligible recipient. The House Finance Committee majority voted 6-5 on Wednesday to temporarily set the dividend at zero in the draft budget while determining its ultimate amount later in the session. House minority Republicans objected to the procedural decision, arguing that the temporary zeroing out masked the state's fiscal challenges despite the majority's stated intention to include a dividend in the final budget.

Dunleavy issued an executive order in early 2025 to establish an agriculture department, which the Alaska Legislature rejected by vote in March on grounds that such action should occur through legislation rather than executive order. After Dunleavy reintroduced a similar executive order during a special session in August, the Legislature challenged the order in court, and a Superior Court judge ruled in December that the executive order was unlawful, finding that the Alaska Constitution limits executive orders to consideration during regular sessions only. Dunleavy appealed the lower court ruling to the Alaska Supreme Court, prompting the Legislature to approve $85,000 in additional legal funding to continue defending the court's decision against the appeal.

The Alaska Legislature passed a resolution on Wednesday extending a disaster declaration that Governor Dunleavy first issued in early October in response to Typhoon Halong and other storms in Western Alaska that destroyed hundreds of rural residents' homes. The extension, which passed the House in a 22-18 vote after clearing the Senate without objection, allows the state to spend $20.5 million in previously appropriated disaster relief funds through March 8 for repairs to affected villages. Dunleavy had requested the increased spending amount, which was $5 million more than his previous request, as the disaster declaration under state law expires after 30 days and required legislative action to extend beyond initial extensions approved by legislative leadership in November, December, and January.

Dunleavy announced plans to introduce legislation that would reduce the state's oil and gas property taxes by 90% to assist the Alaska LNG project. The proposed tax reduction would apply to the developer Glenfarne's megaproject, which is expected to cost at least $44 billion for an 800-mile gas pipeline. Dunleavy characterized himself as a project supporter while lawmakers expressed skepticism about the developer's construction timeline and the project's feasibility.

Dunleavy vetoed legislation in 2025 that would have permanently increased Alaska's per-student funding formula for K-12 public schools, though the Alaska House overrode both vetoes to enact the increase. Despite the formula boost becoming law, school districts across Alaska reported significant budget deficits in the 2026 fiscal year, with the Anchorage School District facing a $90 million shortfall and other districts reporting comparable deficits. The bipartisan House majority coalition indicated it remained committed to improving education funding stability, though the mechanism for achieving additional funding remained uncertain amid limited state revenue.

Dunleavy proposed a seasonal sales tax as part of his fiscal plan to address Alaska's budget shortfall while maintaining the state's Permanent Fund dividend at full levels. Under Alaska's current statute, the Permanent Fund dividend is funded entirely from the state's annual draws from Permanent Fund earnings, with the remainder designated for government services. Dunleavy's proposal would use the seasonal sales tax revenue to cover the gap between Permanent Fund earnings and government service costs, rather than reducing the dividend as an alternative revenue source.

Dunleavy proposed a sales tax as the primary revenue measure in his fiscal plan, with rates of 4% on purchases from April through September and 2% for the remainder of the year, projected to raise up to $800 million annually. The proposal was presented to the House Finance Committee by acting revenue department officials, who fielded questions from lawmakers on both sides regarding potential conflicts with existing local sales taxes and impacts on rural communities. Dunleavy's plan also included a proposal to constitutionally guarantee Permanent Fund dividend payouts that could cost the state more than $2 billion annually, raising concerns among legislators about whether the sales tax revenue would be sufficient to address long-term budget deficits.

Following criticism from Alaska legislators and Mayor Suzanne LaFrance regarding reduced funding for road safety projects in Anchorage, the Dunleavy administration's Department of Transportation and Public Facilities revised its Highway Safety Improvement Program spending plan in January 2026. The revised plan increased funding for Anchorage road safety improvements from $9 million to more than $30 million out of the $77 million allocated for the 2026 program. The funding addresses safety concerns on state-managed highways where the majority of Anchorage's pedestrian fatalities occurred in 2025.

The U.S. Senate confirmed Aaron Peterson, a state natural resources attorney, to serve as a federal judge for Alaska on February 5, 2026, by a vote of 58-39. Peterson, who was nominated by President Donald Trump following a selection process organized by Senator Dan Sullivan, will fill one of Alaska's two vacant federal judgeships. Peterson resigned immediately from the Alaska Department of Law following his confirmation.

Dunleavy announced the Quality of Life Initiative during his State of the State address in January 2026, a partnership between the Alaska Department of Law and the Municipality of Anchorage to address retail theft and other quality-of-life crimes in Anchorage. Attorney General Stephen Cox and Municipal Attorney Eva Gardner signed a memorandum of understanding on January 8 establishing a joint task force that includes two state prosecutors and a supervisor working alongside two municipal lawyers to coordinate on serious retail theft cases. The initiative employs cross-designation allowing both state and municipal lawyers to charge offenses under each other's respective legal codes.

In spring 2025, Governor Dunleavy and the Alaska Legislature budgeted $171 million for the state's 2026 ferry system operating budget, with approximately $78 million anticipated from the Federal Transit Administration's rural ferry program. The federal government failed to open its annual grant process in fiscal year 2025, creating a potential funding shortfall that could force the Alaska Marine Highway System to reduce service or shut down vessels during peak summer tourist season. State Department of Transportation officials stated they were evaluating contingency options including schedule modifications and potential vessel disposition if federal funding was not delivered by the time the summer schedule was set for release in May.

Dunleavy introduced Senate Bill 227, legislation that creates a statewide sales tax at 2 percent in winter and 4 percent in summer, raises oil taxes modestly, and updates the corporate income tax with eventual repeal. The proposal is paired with three companion bills: House Bill 275 to tighten spending growth limits, House Bill 274 to establish sunset reviews for government programs, and House Joint Resolution 30 to enshrine the Permanent Fund dividend in the state constitution. The combined package is designed to address Alaska's fiscal imbalance by bridging projected budget shortfalls over a seven-year period.

Dunleavy requested that the Federal Emergency Management Agency cover 100 percent of costs incurred during an initial 90-day period following Typhoon Halong's impact on Western Alaska communities in October 2025, which destroyed portions of Kipnuk and Kwigillingok and resulted in one death and two missing persons. FEMA denied the request in a December 20 letter, stating that the increased level of funding requested was not warranted. Dunleavy subsequently appealed the decision, revising his request to ask that FEMA cover 90 percent of the initial response costs instead.

Dunleavy introduced a comprehensive fiscal plan designed to address Alaska's structural deficit through multiple revenue mechanisms including a statewide sales tax, increased oil industry taxes, and revisions to the Permanent Fund dividend calculation, while phasing out the corporate income tax. The plan received tepid responses from lawmakers and industry groups, with the Legislature's chief financial analyst concluding that even with the proposed new revenues estimated at approximately $970 million annually, the state would still face deficits of $200 million to $300 million per year. Dunleavy characterized the plan as a sacrifice of his remaining political goodwill intended to provide a framework for his successor to address the state's ongoing fiscal challenges.

Dunleavy signed Alaska into participation in a federal tax credit scholarship program created under the One Big Beautiful Bill Act budget reconciliation measure. The program establishes Scholarship Granting Organizations that receive tax-deductible donations from individuals and businesses, which are then awarded as scholarships to students for tuition, fees, and educational expenses at private schools, charter schools, homeschools, and public schools. The announcement prompted legal challenges from the National Education Association-Alaska, which contended the program violates the state constitution's prohibition on public money funding religious or private schools, while state education officials asserted the funds are private donations and thus do not constitute public money.

Dunleavy proposed a comprehensive fiscal plan that includes Senate Bill 227, which would establish Alaska's first statewide general-purpose sales tax at 4% during summer months and 2%, with the tax set to expire in 2034. The proposal also includes a constitutional amendment to guarantee a Permanent Fund dividend and a tighter state spending cap designed to address Alaska's budget deficit, which is projected at nearly $1.5 billion for fiscal year 2027. The sales tax is expected to generate approximately $815 million annually by fiscal year 2032 and would be accompanied by a planned phase-out of the corporate income tax by 2031.

Dunleavy backed the proposed Alaska LNG pipeline, a natural gas project developed by Glenfarne, stating in his State of the State address that the pipeline was "closer to reality than ever" following the company's signing of a new agreement to advance the project's first phase. The pipeline project prompted over 30 activists and students to gather outside the Alaska State Capitol on January 24, 2026, to demonstrate their objections to the natural gas expansion. Dunleavy's support for the pipeline represented a continued commitment to advancing the large-scale fossil fuel infrastructure project.

Dunleavy introduced a comprehensive fiscal plan to the Alaska Legislature that includes a proposed statewide sales tax set at 4% for half the year and 2% for the other half, projected to raise over $730 million annually. The plan also calls for enshrining the Permanent Fund dividend in the state constitution, restricting state spending, and eventually repealing the state's corporate income tax in 2031. Most revenue measures in the proposal, including the sales tax and oil production tax increases, are designed to phase out after seven years, contingent on increased oil and gas production providing sufficient state revenue by that time.

Governor Dunleavy praised the Alaska LNG project during his State of the State address in January 2026, characterizing it as "closer to reality than ever" following the project developer's announcement of preliminary agreements with gas suppliers and pipeline manufacturers. The Glenfarne Group, the project's developer, announced agreements with ExxonMobil and Hilcorp to supply North Slope gas and letters of intent to supply gas to Enstar and the Donlin gold project. Dunleavy's remarks came as the company indicated it expected to begin laying pipeline as early as December 2026 for the project, which aims to deliver natural gas to Alaska and export liquefied natural gas internationally at an estimated total cost of $44 billion.

Dunleavy delivered his eighth and final State of the State address on January 22, 2026, in which he discussed broad outlines of a fiscal plan to address Alaska's budget gap without providing specific legislative details during the speech. The governor's proposed budget for fiscal year 2027, released in December, called for a full Permanent Fund Dividend of $3,650 per resident while projecting a $1.5 billion deficit. Dunleavy stated his fiscal plan aims to bridge the gap until increased fuel revenue from the North Slope becomes available and indicated his administration was considering a temporary seasonal sales tax concept for legislative discussion.

Dunleavy vetoed Senate Bill 113, a tax measure that would have created between 25 and 65 million dollars in annual state revenue by shifting corporate income tax payments to Alaska, with funds directed toward early literacy programs and career-technical education. The Alaska Legislature voted 35-25 on January 22, 2026 to override the veto, falling 10 votes short of the 45-vote supermajority required under the Alaska Constitution. Dunleavy stated his rationale for the veto was that he would not approve tax measures outside the context of a comprehensive long-term plan to balance state revenue and expenses.

Dunleavy announced in January 2026 that he would introduce new taxes during his eighth and final year as governor, including a temporary seasonal sales tax concept designed to generate approximately $1.6 billion in new revenue beginning after he leaves office. He stated that the proposed taxes would be components of a broader fiscal plan intended to provide stability for the five years following the end of his governorship. Dunleavy characterized the new revenue sources as temporary measures, stating they should sunset within five years, and attributed the need for additional taxation to projected revenue challenges before anticipated growth from resource development projects.

Dunleavy vetoed Senate Bill 113 in September 2025, which would have applied Alaska's corporate income tax to out-of-state companies operating online without altering taxes on Alaska-based companies. The Alaska Legislature held a veto override vote on January 23, 2026, but the measure failed to secure the 45 votes needed, receiving only 35 votes in favor along largely caucus lines. Dunleavy stated at the time of his veto that he opposed signing "stand-alone" tax bills.

Dunleavy vetoed Senate Bill 113, which would have established a corporate income tax on companies conducting business online in Alaska without a physical presence in the state. The Alaska State Legislature held a joint session on January 20, 2026, to vote on overriding the veto, with the effort falling short at 35 votes in favor and 25 opposed, requiring 45 votes for a successful override. The Department of Revenue had estimated the measure could generate between 25 million and 65 million dollars annually if enacted.

Dunleavy vetoed a revenue bill in September that would have applied Alaska's corporate income tax to out-of-state companies operating online, citing his preference for addressing tax measures within a complete fiscal framework. The bill had passed the previous legislative session with support from 42 of 60 lawmakers. The Alaska Legislature began its 2026 session with plans to attempt an override of the veto, a procedure lawmakers have now successfully executed multiple times since breaking a 15-year streak of veto overrides in May 2025.

The Dunleavy administration commissioned a report by the law firm WilmerHale that examined former Alaska Revenue Commissioner Adam Crum's decision to invest up to $75 million from the Constitutional Budget Reserve into the private equity firm DigitalBridge. The 191-page report found that while Crum possessed statutory authority to make the investment and the investigation identified no conflict of interest or criminal wrongdoing, the investment raised "significant concerns about whether he met his statutory fiduciary duties." The report documented instances in which Crum failed to fully analyze the investment, consider alternative options, consult expert advice, and disclose specific plans to relevant state officials and legislative leaders.

Dunleavy vetoed funding for transportation, disaster relief, and fire suppression, prompting the Alaska Legislature to convene for its second session with plans to override or address these vetoes. The legislature faces a revenue shortfall from lower-than-expected oil revenue and must draw from the state's $3 billion savings account to cover basic services and the statutory Permanent Fund dividend. Dunleavy indicated he would present a fiscal plan during the session intended to generate $1.6 billion in new revenue beginning in fiscal year 2028, though specific details had not yet been disclosed.

Dunleavy announced receipt of $272 million per year for five years, totaling nearly $1.4 billion, from the federal budget reconciliation bill's Rural Health Transformation Program to support Alaska's health care system. The funding was designated to address health care delivery challenges specific to Alaska's rural geography and high costs. The allocation represents a shift in federal health care funding distribution that had previously directed fewer resources to Alaska relative to other states.

Dunleavy declared a state disaster for Juneau on Wednesday ahead of an atmospheric river storm at the request of Juneau city and tribal officials. The declaration allowed the city to access state funding and other resources to respond to the storm. The Juneau School District subsequently cancelled school Friday due to hazardous road and weather conditions resulting from the atmospheric river.

Kim Kovol departed her position as commissioner of Alaska's Department of Family and Community Services to accept a position with the U.S. Department of Health and Human Services in the Trump administration, with her last day in the state role occurring on Friday. Dunleavy announced the departure and stated that Kovol, who was the first commissioner of the department following its creation in 2022 through an executive order that split the former Department of Health and Social Services, had built a foundation focused on service and accountability. Tracy Dompeling, the department's deputy commissioner, assumed the role of acting commissioner following Kovol's departure.

In December, Dunleavy requested that the Alaska Legislature adopt a statutory formula for calculating the Permanent Fund dividend that had not been used for a decade, proposing a $3,650 payment per eligible recipient at a total cost of $2.3 billion. The proposal also called for spending more than $1.8 billion from state savings to fund government services and infrastructure in the current and coming fiscal years. The Legislature ultimately determines the final dividend amount as part of the budget process, and lawmakers have used Permanent Fund earnings since 2016 to help cover government service costs as oil revenue has declined.

Governor Dunleavy issued an executive order on August 1 to create a state agriculture department timed to a special legislative session that convened the following day, after the Alaska Legislature had rejected a similar executive order during the regular session in March. The Alaska Legislature filed suit challenging the constitutionality of issuing an executive order during a special session, and on December 31, Juneau Superior Court Judge Marianna C. Carpeneti ruled in favor of the Legislature, finding that the state Constitution's drafters intended executive orders to be considered only during regular sessions. Dunleavy's administration announced it would appeal the decision to the Alaska Supreme Court, citing the constitutional significance of the case for future governors and legislatures.

In June 2025, Dunleavy vetoed $200 million of a $700 million increase to the Base Student Allocation while signing the state budget. The veto reignited tensions between the executive branch and the Alaska Legislature over education funding. In August, the Legislature narrowly voted to override Dunleavy's education funding veto in a bipartisan action.

Governor Dunleavy nominated Garret Nelson and Steve St. Clair to fill two vacant Alaska House seats representing Mat-Su districts, selecting them from a list of candidates provided by Republican Party leaders. The Alaska House Republicans voted to confirm both nominees on December 30, 2025, and they were subsequently sworn in by House Speaker Bryce Edgmon. Nelson replaced George Rauscher and St. Clair replaced Cathy Tilton, both of whom had been appointed to Senate vacancies the previous month.

Dunleavy's administration received approval for $272 million in federal funding through the Rural Health Transformation Program, making Alaska the second-largest recipient among all states and the highest on a per-capita basis. The program was established through the Republican-backed budget reconciliation bill signed into law in July and allows states considerable discretion in designing uses for the funds within specified limitations. Alaska's application outlined plans to use the funding for renovating rural facilities, expanding telemedicine, deploying mobile dental clinics, designing preventive care payment models, and expanding medical residency programs.

Dunleavy signed a gas pipeline contract with developer Glenfarne for the Alaska LNG project, which he described as initiating a pipeline development the state had pursued for decades. The contract represented what Dunleavy identified as the highlight of 2025 at the statewide level, following Glenfarne's January announcement of preliminary agreements with international companies interested in purchasing gas. Dunleavy stated he expected major announcements in January regarding a go or no-go decision on the first phase of the project, which would transport gas from the North Slope to Southcentral Alaska for in-state use.

Governor Dunleavy appointed Garret Nelson and Stephan St. Clair to fill two vacant Alaska House of Representatives seats on December 24, 2025. Nelson, an online salesman from Sutton, filled the seat previously held by George Rauscher, while St. Clair, a veteran and former legislative staffer from Wasilla, filled the seat previously held by Cathy Tilton. The appointments are subject to confirmation votes by House Republicans scheduled to take place in-person after Christmas.

Dunleavy's administration reduced Highway Safety Improvement Program funding for Anchorage by approximately $19 million for fiscal year 2026, approving only $9 million of the $77 million statewide program allocation for city projects. The Alaska Department of Transportation and Public Facilities prioritized projects deemed "ready" and "data-driven," which resulted in deferral of Anchorage initiatives including pedestrian lighting improvements on Gambell Street, traffic signal upgrades, lane reductions on Northern Lights Boulevard and A Street, and crosswalk and sidewalk enhancements at busy intersections. The state cited the need for additional engineering analysis on high-volume and high-classified roads and noted that statewide funding demand exceeded available resources for the first time, necessitating prioritization decisions.

Dunleavy's administration proposed reclassifying revenue from the National Petroleum Reserve-Alaska Impact Mitigation Grant Program from restricted funds dedicated to North Slope communities to unrestricted general revenue, according to documents published by the Department of Revenue. Under the proposed policy change effective in fiscal year 2026, money from federal oil leases in the petroleum reserve would be divided between unrestricted revenue (74.5 percent), the Permanent Fund (25 percent), and the Public School Trust Fund (0.5 percent), rather than directed entirely to the grant program for North Slope Borough communities. The shift would redirect funds previously designated to compensate communities affected by oil and gas drilling on federal land to statewide services and the Permanent Fund dividend.

Governor Dunleavy issued an administrative order in May 2025 directing state agencies to halt most hiring as a measure to control government spending in response to declining oil revenues. Data from six months following the freeze showed the number of filled state positions decreased from 14,416 in April to 14,357 in November, representing a decline of less than 0.5 percent. The hiring freeze included exemptions for positions deemed essential to public safety, such as state troopers and corrections officers, and allowed agency heads to request additional exemptions for positions necessary to protect public safety or meet essential state responsibilities.

Dunleavy announced plans to introduce legislation establishing a property tax rate of 2 mills on the assessed value of the Alaska LNG project, which represents one-tenth of the 20 mills levied on oil and gas infrastructure in the state. The proposed tax rate would apply for the duration of the project's estimated 30-year or longer operational lifetime. Dunleavy's administration is simultaneously engaging a third-party consultant to identify additional potential revenue sources from the project for state and local governments.

Dunleavy issued an administrative order in August directing all state agencies to reduce regulations by 15 percent by the end of 2026 and by 25 percent by the end of 2027. The order required agencies to first complete a baseline count of existing regulations by mid-October, though several departments subsequently received extensions until March 2 to finish their tallies. As of December 2025, multiple agencies including the Department of Fish and Game, Department of Revenue, and Department of Transportation and Public Facilities remained behind schedule in completing their regulatory inventories.

Dunleavy unveiled a first-draft state budget for fiscal year 2026 totaling $7.75 billion, which proposes spending more than $1.8 billion from the state's principal savings account to cover disaster response, annual expenses, and a Permanent Fund dividend of approximately $3,800 per recipient. The proposal includes a supplemental budget addressing unforeseen costs in the current fiscal year, including transportation spending and an additional $40 million for the state's disaster response fund. Dunleavy also released a draft 10-year fiscal plan that appears to call for billions of dollars in tax increases to address projected future deficits, with plans to detail this long-term approach in January before the legislative session begins.

Dunleavy released his final budget draft as governor on December 12, 2025, proposing a $1.8 billion draw from the state's savings to fund services and infrastructure across the current and coming fiscal years. The proposal included a $3,650 Permanent Fund dividend payment per eligible recipient using a dividend calculation statute that had not been employed for a decade, with a total dividend cost of $2.3 billion. Dunleavy's plan called for spending approximately two-thirds of the Constitutional Budget Reserve, the state's primary rainy day fund, which currently holds roughly $3 billion.

Dunleavy is expected to release his draft budget by December 15, marking the final budget cycle of his eight-year tenure as governor. The budget proposal comes as Alaska faces declining oil prices and rising costs for state services while tensions persist between the executive and legislative branches following legislative overrides of gubernatorial vetoes. The draft will outline Dunleavy's approach to funding state services and addressing the structural imbalance between revenues and expenditures.

The Alaska Republican Party forwarded three candidate names to Governor Dunleavy for each of two vacant Alaska House seats in Districts 26 and 29. For District 26, the party recommended Donna Anthony, Sean McPeck, and Stephan St. Clair, while for District 29, the party recommended Lucas Howard, John James, and Garret Nelson. Dunleavy is expected to select one candidate for each district by the end of the month, with the selections subject to confirmation by Republican members of the House.

Dunleavy made a decision to drastically reduce the size of the state workforce charged with processing applications for the Supplemental Nutrition Assistance Program, a decision that contributed to Alaska's SNAP backlog peaking at around 15,000 cases in 2023. As of November 2025, the Alaska Division of Public Assistance continued to lag in processing food assistance requests on time, with 3,854 SNAP applicants waiting longer than allowed by federal law and 417 applications unprocessed more than four months after submission. The division cited multiple factors for the ongoing delays, including staffing challenges and complications from a federal shutdown that began in October 2025.

Dunleavy approved a U.S. Defense Department request for five Alaska National Guard service members to provide administrative and logistical support to the U.S. Immigration and Customs Enforcement office in Anchorage for up to one year. The National Guard members will perform duties including vehicle fleet management, data entry, report creation, phone support, and office administration at the ICE office's Enforcement and Removal Operations and Homeland Security Investigations sections. The deployment was authorized under Title 32 Section 502(f) of the U.S. Code, which permits National Guard members to perform additional duties under direction of the President or Secretary of Defense.

Governor Dunleavy approved a request from U.S. Immigration and Customs Enforcement to deploy five members of the Alaska National Guard to ICE's Anchorage office to provide administrative and logistical support. The Alaska National Guard members, drawn from both Army and Air National Guard personnel across various career fields, were assigned to assist the Enforcement & Removal Operations section and Homeland Security Investigations section with duties including vehicle fleet management, safety compliance, office support, and processing purchase orders. Dunleavy's office stated that future requests for National Guard administrative and logistical support would be considered on a case-by-case basis.

Governor Dunleavy nominated George Rauscher and Cathy Tilton to fill two vacancies in the Alaska State Senate, and both candidates were confirmed by Alaska Senate Republicans on a secret ballot vote on Saturday, December 2, 2025. Rauscher and Tilton subsequently resigned from their Alaska House seats, creating two vacancies in House District 26 and House District 29 in the Matanuska-Susitna Borough. The Alaska Republican Party established a December 4 application deadline for interested candidates to fill these House vacancies, with the party selecting three nominees per seat for Dunleavy to choose from by December 29.

Senate Republicans approved Governor Dunleavy's nomination of former Representatives Cathy Tilton and George Rauscher to fill two vacant Alaska State Senate seats on Saturday. Tilton and Rauscher, both Republicans, were selected to fill positions previously held by Shelley Hughes and Mike Shower. The confirmations reduced the Alaska House Republican caucus from 19 to 17 members, contributing to subsequent leadership changes within that caucus.

Dunleavy signed legislation in 2023 that authorized Alaska to assume regulatory control of carbon dioxide injection wells from the federal Environmental Protection Agency. The Alaska Oil and Gas Conservation Commission published draft regulations on December 1, 2025, to implement the state's "carbon storage and underground injection" program, which would allow companies to sequester carbon dioxide deep underground. The regulations span 105 pages and include requirements for well testing, monitoring, insurance, and abandonment procedures, with a public hearing scheduled for January 13, 2026.

Dunleavy's administration filed a lawsuit in federal court to overturn the Environmental Protection Agency's 2023 veto of the proposed Pebble Mine, a gold and copper mining project located at the headwaters of Bristol Bay in southwest Alaska. The case, combined with a separate lawsuit filed by the mine's developers and two Native corporations, is currently before U.S. District Court Judge Sharon Gleason. The administration simultaneously filed a separate lawsuit claiming that if the EPA veto is upheld, the federal government owes Alaska $700 billion in damages based on the state's estimate of the mine's value.

Gov. Mike Dunleavy appointed state Representatives George Rauscher and Cathy Tilton to two vacancies in the Alaska Senate that resulted from the resignations of Sen. Mike Shower and Sen. Shelley Hughes. The appointments are subject to confirmation by at least five of the nine other Senate Republicans, with votes scheduled by secret ballot for Saturday in Anchorage. If confirmed, Rauscher and Tilton's House seats would become vacant, requiring Dunleavy to appoint replacements within 30 days.

Dunleavy announced on November 26, 2025, that he had selected Representatives George Rauscher and Cathy Tilton to fill Alaska Senate vacancies created by the resignations of Senators Mike Shower and Shelley Hughes. Rauscher, who has served in the House since 2017, was selected to replace Shower, while Tilton, a former House speaker who has served since 2015, was selected to replace Hughes. The selections are subject to confirmation by Senate Republicans, with a vote scheduled for Saturday requiring support from at least five of the nine current Senate Republicans.

Governor Dunleavy announced on Monday that he had appointed Ralph Samuels, a former state legislator and businessman, to the Alaska Permanent Fund Corp. board of directors in a public seat vacated by Craig Richards, whose term was set to expire in 2025. Samuels replaces Richards, who had served on the board since 2015 and chaired it from 2018 to 2022. The Alaska Permanent Fund Corp. board directs the state's $85 billion Permanent Fund, which generates more than 60 percent of the state's general-purpose revenue used for state services and annual Permanent Fund dividend payments to residents.

The Alaska State Medical Board canceled its November 2025 meeting due to lack of quorum, marking the second consecutive month of cancellations resulting from three unfilled board seats. Governor Dunleavy delayed appointing members to the board, which is responsible for adopting medical practice regulations and disciplining physicians, though his spokesperson stated one vacancy had been filled and two others would be filled soon. The board requires at least five members present to conduct business, and the vacancies had persisted for several months despite applications from qualified candidates.

The Trump administration released an offshore oil and gas leasing plan in November 2025 that proposed 21 lease sales in Alaska marine waters through 2031, including five in Cook Inlet, two in the Beaufort Sea, two in the Chukchi Sea, and others in additional marine areas, while excluding only the North Aleutian Basin from proposed leasing. Dunleavy responded to the plan by stating on social media that the Trump administration was leading toward American energy dominance and that Alaska possessed substantial offshore oil and gas reserves. The leasing proposal was similar to an offshore plan the Trump administration had proposed in 2017.

Dunleavy approved a request from the U.S. Secretary of the Army to deploy approximately 100 Alaska National Guard personnel to Washington, D.C., in March 2026 to support a joint federal task force. The deployment was authorized in response to a Pentagon directive requiring Alaska to prepare 350 National Guard personnel for rapid deployment for civil disturbance operations. A federal judge subsequently issued a temporary block on the deployments to Washington, D.C., on December 11, 2025, pending appeal by the Trump administration.

An Alaska legislative committee unanimously authorized the administration of Dunleavy to spend up to $200 million in federal funds on rural health care improvements from the congressionally approved Rural Health Transformation Fund established under the One Big Beautiful Bill Act. The Department of Health developed the spending proposal after receiving 400 funding ideas from 160 groups and submitted it to federal officials earlier in the month. The funding is expected to be awarded by the end of the year, with potential for the state to receive up to $1 billion from the fund over the coming five years, though spending is restricted by federal limitations such as prohibition on new facility construction.

Governor Dunleavy signed an emergency order declaration on November 3 during the federal government shutdown to authorize the use of state funds for the Supplemental Nutrition Assistance Program. The state had set aside $5 million per week for emergency SNAP funding, but did not deploy these funds because the state's system required reconfiguration to process state money instead of federal funds. By the time state officials completed the technical work necessary to issue state-only benefits, the federal government had begun partially fulfilling its obligations on November 4, making the state emergency funds unnecessary.

Dunleavy is positioned to fill two Alaska State Senate seats vacated by Republican senators Shelley Hughes and Mike Shower, who resigned in November 2025 to pursue statewide campaigns. Under Alaska state law, Dunleavy must select replacements from a slate of candidates submitted by the Alaska GOP within 30 days of each resignation, with Republican Senate members voting to confirm the appointments. The vacancies resulted from Hughes stepping down to focus on her gubernatorial campaign and Shower resigning to support Bernadette Wilson's gubernatorial candidacy alongside his own run for lieutenant governor.

Governor Dunleavy attended a Washington, D.C. event where Interior Secretary Doug Burgum signed a land exchange agreement between the federal government and the King Cove village corporation to permit construction of an 11-mile gravel road through the Izembek National Wildlife Refuge on the Alaska Peninsula. The agreement would transfer 490 acres of federal refuge land to King Cove Corp. in exchange for 1,739 acres of land within the refuge boundaries plus relinquishment of rights to an additional 5,430 acres. Alaska tribes and conservation groups subsequently filed lawsuits in U.S. District Court in Alaska challenging the land exchange on grounds that it violates federal law by threatening the refuge's wilderness character and endangering waterfowl and other wildlife.

Dunleavy proposed a measure that would have extended the state's moratorium on school bond debt reimbursement payments until 2030, but the proposal failed to pass the Alaska Legislature earlier in 2025. The moratorium, which had been in place since 2015 with a renewal in 2020, officially ended in summer 2025, allowing the state's school bond debt reimbursement program to resume funding school construction and maintenance projects. The Anchorage School District is now preparing a $79 million bond proposal for voter consideration in April, with the expectation that the state will cover half the costs through the restored reimbursement program.

Governor Dunleavy declared a state of emergency in response to federal SNAP benefit reductions during a federal government shutdown affecting over 66,000 Alaskans, and promised to distribute state funds to replace lost federal food assistance through Electronic Benefit Transfer cards. As of one week after the emergency declaration, the state had not yet issued state funds to SNAP recipients through the EBT system, though the Division of Public Assistance stated it was working on a solution expected to be operational later that month. Dunleavy also committed to distributing approximately $2.5 million in state funding to food banks, including $2 million to the Food Bank of Alaska and $500,000 to the Fairbanks food bank.

Dunleavy issued a state disaster declaration on Monday to provide food assistance to Alaskans during a federal government shutdown that froze funding for the Supplemental Nutrition Assistance Program. The declaration authorized the state to deposit funds on Electronic Benefit Transfer cards on a weekly schedule and directed the Department of Health to work with food banks to distribute resources to residents. The action affected more than 66,000 Alaskans who rely on federal nutrition assistance.

Dunleavy vetoed legislation to increase Alaska's school funding formula earlier in 2025, though the Legislature overrode both vetoes and permanently boosted the formula by approximately $180 million to the state's $1.2 billion education budget. The Legislature subsequently established an education funding task force to analyze the formula and other education policy reforms sought by Dunleavy. The task force held its second meeting in November 2025, where Alaska educators called for additional state spending beyond the recently approved increase.

President Donald Trump plans to nominate Aaron Peterson, an attorney with the Alaska Department of Law's natural resources division, to fill one of two vacancies on the U.S. District Court for the District of Alaska. According to Peterson's questionnaire submitted to the Senate Judiciary Committee, a member of Governor Dunleavy's federal transition team encouraged Peterson to apply to a vetting committee formed by Senator Dan Sullivan. Peterson is a registered Republican and member of the Federalist Society who previously worked as a prosecutor and represented the Board of Fisheries.

The Dunleavy administration stated it could not identify available state funds to donate to food banks in response to a potential $25 million monthly loss in federal Supplemental Nutrition Assistance Program funding threatened by a government shutdown. Turner, a spokesperson for Dunleavy, communicated that the administration had searched for funds that could be donated to food banks but determined none were available. Alaska lawmakers, including House Speaker Bryce Edgmon and Senate President Gary Stevens, met with Dunleavy to discuss potential state-level responses and contemplated calling a special legislative session to appropriate state funding to replace federal SNAP assistance if the shutdown persisted.

The Alaska Supreme Court heard arguments on October 29, 2025, regarding whether to reinstate a 1970 law that restricted abortion provision to physicians licensed by the State Medical Board, which a lower court had struck down in 2024 following a lawsuit by Planned Parenthood. The Dunleavy administration has sought to revive the struck law as part of efforts to limit abortion access in Alaska. The case centers on whether advanced practice clinicians, including physician assistants and nurse practitioners, may continue performing abortions in the state, a practice permitted since 2021.

Governor Mike Dunleavy appointed Attorney General Stephen Cox in August 2025 to lead the Alaska Department of Law. Cox subsequently created a new solicitor general position and appointed Indiana attorney Jenna Lorence to fill it in October 2025, tasking her with overseeing the state's appellate advocacy and participation in constitutional and multi-state cases. Lorence, who most recently served as deputy solicitor general in Indiana, is expected to relocate to Alaska and will practice under a provisional license pending admission to the Alaska Bar.

President Trump signaled his intention to nominate Aaron Christian Peterson, an attorney in the Alaska Department of Law's natural resources litigation section, to a vacant U.S. District Court judge position for Alaska. Trump forwarded Peterson's judicial candidate materials to the Senate Judiciary Committee, though no formal nomination had been announced at the time of reporting. If confirmed, Peterson would fill one of two vacant federal judge positions in Alaska.

Dunleavy announced on October 24, 2025, that Alaska Department of Natural Resources Commissioner John Boyle had resigned from his position in the administration. Dunleavy did not disclose specific reasons for Boyle's immediate departure in a written statement thanking him for his service. Dunleavy appointed John Crowther, the department's deputy commissioner, to serve as acting commissioner beginning that same day.

The Trump administration finalized a plan to reopen the 1.5-million-acre coastal plain of the Arctic National Wildlife Refuge to oil drilling, with Interior Secretary Doug Burgum signing the decision at an event in Washington, D.C. that included Governor Dunleavy. The administration simultaneously approved a land exchange to permit an 11-mile gravel road through the Izembek National Wildlife Refuge connecting King Cove to Cold Bay airport and reissued permits for the 211-mile Ambler Road through northwest Alaska wilderness. Dunleavy attended the announcement alongside Alaska's congressional delegation to mark the completion of these three projects that had been halted or revoked under the Biden administration.

The Dunleavy administration signed a contract with national law firm WilmerHale to conduct an independent review of the Department of Revenue's decision to commit $50 million from Alaska's rainy day fund to invest in digital infrastructure firm DigitalBridge. The contract was signed by the Department of Law following scrutiny of former Revenue Commissioner Adam Crum's investment decision and Dunleavy's public promise earlier in the month to initiate an independent review. This marks the second occasion the Dunleavy administration has retained WilmerHale to review the conduct of state agencies, following a similar engagement to examine Alaska Permanent Fund Corporation policies after concerns were raised about an appointee's potential conflicts of interest.

Dunleavy requested a federal disaster declaration following widespread destruction from ex-Typhoon Halong in Western Alaska, which President Trump approved on October 22, 2025. Trump authorized $25 million in initial federal funding to cover recovery costs, with the federal disaster declaration authorizing federal authorities to cover 100 percent of relief assistance costs for the next 90 days. Dunleavy stated that the $25 million represented the initial amount of federal funding and that additional funds would be made available as needed for rebuilding efforts in affected communities.

In 2022, Dunleavy created a food security task force to assess vulnerabilities in Alaska's food supply and recommend solutions to strengthen local production and distribution. The task force determined that establishing a state Department of Agriculture would reduce the state's reliance on imports from the Lower 48 and bolster private agriculture. During the 2023 legislative session, lawmakers rejected the proposal to create the department, citing procedural grounds rather than substantive concerns.

Governor Dunleavy requested that President Donald Trump approve a major disaster declaration for Western Alaska following damage from Typhoon Halong, which struck coastal villages and displaced hundreds of residents. The Federal Emergency Management Agency confirmed receipt of the disaster declaration request and deployed 64 staff members to Alaska, including liaison officers and mass care specialists embedded at the State Emergency Operations Center, though FEMA did not provide a timeline for approval. FEMA also activated a response coordination center in Washington state and began collecting damage assessment imagery to assist state and tribal response efforts.

Dunleavy disbanded the state climate change commission in 2019, which had submitted recommendations for planning resources and community relocation strategies before the governor took office. The commission's 2018 report identified the absence of formal federal or state policy on climate change response and relocation as a challenge facing at-risk communities. The disbanding of the commission ended the statewide climate change-focused efforts that had been initiated under the previous administration.

Dunleavy requested that President Donald Trump declare a major disaster for Alaska following severe storm damage in Western Alaska, stating that the incident exceeded the state's response capabilities. The request followed a record-breaking storm surge that displaced hundreds of residents from Native villages, destroyed dozens of homes, and resulted in one death and two missing persons. A federal disaster declaration, if approved, would unlock Federal Emergency Management Agency funding and assistance for recovery efforts.

Governor Dunleavy appointed John Wood to a public seat on the Alaska Judicial Council, which nominates candidates for judicial vacancies. Two lawsuits challenged the appointment, arguing that Wood's suspended attorney license made him ineligible under the Alaska Constitution's requirement that certain council seats be held by non-lawyers. An Anchorage Superior Court judge ruled that Wood's suspended license means he is not currently an attorney and therefore meets the constitutional eligibility requirement, allowing the appointment to stand.

Dunleavy issued a proclamation on October 14, 2025, declaring that date as "Charlie Kirk Day" in Alaska to honor the conservative media personality and political activist who was killed on September 10, 2025, while speaking at Utah Valley University. The proclamation, dated on what would have been Kirk's 32nd birthday, characterized Kirk as exemplifying "uncommon courage in pursuing dialogue" and stated he "gave his life in defense of these freedoms." Dunleavy met with members of the University of Alaska Anchorage chapter of Turning Point, the organization currently led by Kirk's wife, Erika, on the same day the proclamation was issued.

Governor Dunleavy held a press briefing on October 13, 2025, to address rescue and recovery operations following severe damage to Western Alaska communities from the remnants of Typhoon Halong. State and federal officials, including members of Dunleavy's cabinet, Coast Guard representatives, and Alaska's congressional delegation, outlined immediate search and rescue priorities and plans for establishing task forces in Nome, Kotzebue, and Bethel to coordinate long-term assistance. Dunleavy stated that the state would mobilize available resources to address shelter needs and community recovery as damage assessments continued.

Former Alaska Revenue Commissioner Crum committed $50 million from the Constitutional Budget Reserve to a digital infrastructure firm investment shortly before departing state office in July 2025. Crum stated he was following state law and that members of the Dunleavy administration, including Governor Dunleavy and Department of Law attorneys, had been informed of the investment plan for months in advance. Following the commitment, Governor Dunleavy announced a third-party independent review of the investment, while legislative leaders expressed concerns regarding accountability and fiscal responsibility.

The Alaska Supreme Court affirmed a lower court order requiring backers of Governor Dunleavy to comply with subpoenas seeking records related to alleged campaign finance law violations during the 2022 election. The subpoenas were issued by the Alaska Public Offices Commission to investigate a complaint that the Republican Governors Association and its affiliated group A Stronger Alaska improperly spent money supporting Dunleavy's reelection campaign without adequate donor disclosure. The Republican Governors Association and A Stronger Alaska had previously declined to respond to the subpoenas, leading to the court proceedings.

Dunleavy issued an executive order during a special session in August to establish an agriculture department, which the Alaska Legislative Council subsequently challenged in court in October 2025. The Legislature contends that Alaska's constitution prohibits executive orders during special sessions because it prevents lawmakers from having adequate opportunity to consider and potentially disapprove such orders. Dunleavy maintains that the Alaska Constitution permits executive orders during special sessions and declined to withdraw the order after legislative leaders requested he do so.

Dunleavy's office released a statement directing state departments to review the federal programs they administer in response to the federal government shutdown that began on October 2, 2025. The statement noted that Alaska has historically maintained state-administered, federally funded programs during previous shutdowns and indicated the state would attempt to do so again using available funds and current federal agency guidance. Dunleavy's office also confirmed that SNAP had funding to extend through October during the shutdown period.

Dunleavy vetoed Senate Bill 113, legislation that would have imposed state corporate income tax on out-of-state businesses operating online, including streaming and technology services, with projected annual revenue between $25 million and $65 million. In his veto letter, Dunleavy stated that any fiscal solution must include economic diversification and new industries rather than standalone tax measures, and raised constitutional concerns that the bill singled out a specific class of digitized out-of-state businesses for less favorable tax treatment. The governor reiterated his position that new taxes should only be adopted in conjunction with new limits on state spending.

Dunleavy vetoed Senate Bill 54 on September 24, 2025, which would have expanded the State Board of Registration for Architects, Engineers and Land Surveyors to include licensing for interior designers. In his veto message, Dunleavy stated the bill lacked a definition of "interior design" and did not provide a public safety rationale for creating a new regulatory board and bureaucracy. The veto marked Dunleavy's eighth policy bill veto of the year, representing approximately 24 percent of all bills passed by the legislature.

In August 2025, Alaska lawmakers narrowly overrode Governor Dunleavy's veto of $50 million in education funding that had been passed earlier that year as part of an increase to the state's per-student funding. The veto override occurred during a school board candidate forum in Juneau, where Board of Education candidate Steve Whitney characterized the override process as "not a normal functioning scenario" and stated that the board's immediate task was to "survive for two more years and hopefully rebuild." The funding dispute centered on the state's responsibility for supporting local education operations through per-student allocations.

In January 2025, Dunleavy introduced an executive order to create a Department of Agriculture by reorganizing existing approved positions without requiring additional funding, which the Legislature narrowly rejected largely along party lines. When Dunleavy reintroduced the same executive order during a special session in August 2025, the Legislature did not address it during the month-long session, and the order became law according to the Alaska Constitution. The Legislative Council subsequently voted in September 2025 to allocate up to $100,000 to file a lawsuit challenging the executive order's validity.

Dunleavy issued an executive order during an August special session to establish a state agriculture department, following the Legislature's rejection of a similar executive order in March. The Alaska Legislative Council voted 9-2 to authorize spending up to $100,000 on litigation to challenge whether Dunleavy possessed constitutional authority to create the department through executive order after the Legislature had previously rejected the same action. The dispute centers on whether the governor can implement an executive order that the Legislature did not explicitly vote down during the special session, with Dunleavy contending the department would take effect in January absent specific legislative disapproval.

Dunleavy's administration repealed the 80th percentile rule in January 2024, which had required insurance companies to reimburse out-of-network providers at least the 80th percentile of average rates for medical services. A coalition of health care providers challenged the repeal in court, arguing the Division of Insurance had not adequately demonstrated the rule caused health care cost increases in Alaska. In September 2025, Anchorage Superior Court Judge Yvonne Lamoureux ruled in favor of the state, finding that the Division of Insurance did not act arbitrarily or unreasonably in repealing the rule.

Dunleavy announced on Friday that he would not extend the special legislative session he had called on August 2 to consider his education policy proposals, which was scheduled to conclude on Sunday. The special session had been convened to debate Dunleavy's education bills, but lawmakers overrode two gubernatorial vetoes on school funding and departed the Capitol without considering the governor's proposals. In his letter to legislative leaders, Dunleavy stated that he was prepared to call additional special sessions beginning in January if the Legislature did not pass education policy reforms during the regular session.

Governor Dunleavy appointed Stephen Cox as Alaska attorney general, effective Friday, replacing Treg Taylor who departed after four years in the position. Cox, a registered Republican who previously served as U.S. Attorney for the Eastern District of Texas and deputy associate attorney general in Washington, D.C., has resided in Anchorage since 2021 working as chief legal officer for Bristol Bay Industrial. Under Alaska law, the attorney general appointment is subject to confirmation by the Alaska Legislature.

Dunleavy signed a memorandum of understanding with Emily Domenech, executive director of the Federal Permitting Improvement Steering Council, on August 27, 2025, establishing a partnership between Alaska and the council to streamline resource development permitting. Under the agreement, the Alaska Department of Natural Resources will coordinate directly with the Permitting Council to identify projects eligible for expedited permitting through the FAST-41 process. The pilot project, the first of its kind in the country, initially focuses on mining projects and aims to increase the number of Alaskan projects receiving FAST-41 status.

Alaska lawmakers convened a newly formed legislative task force on education funding for its first meeting in August 2025 to examine how public schools are funded in the state. The task force was established through House Bill 57, which Governor Dunleavy vetoed in 2025 before lawmakers overrode his veto in May. During the first meeting, task force members heard presentations on the state's education budget from legislative analysts and planned their future agenda without making immediate policy proposals.

Governor Dunleavy issued an executive order to create a state agriculture department during a special legislative session called in August 2025. Legislative leaders House Speaker Bryce Edgmon and Senate President Gary Stevens requested in a letter dated August 18 that Dunleavy withdraw the order, arguing the Alaska Constitution does not permit creation of executive departments through executive order during a special session lasting fewer than 60 days. Dunleavy's spokesman Jeff Turner stated the governor would not withdraw the order and reiterated Dunleavy's position that the Legislature has until the end of August to vote in joint session to reject the executive order, after which it will take effect if not disapproved.

The Alaska State Medical Board, whose members were appointed by Dunleavy, voted to move toward restricting gender-affirming care for minors by classifying such treatment as "unprofessional conduct" under proposed regulations. The draft regulations would allow the board to discipline medical providers who offer hormone therapy and surgeries to transgender minors. The proposed regulations were forwarded to the state Department of Law for review before entering a 30-day public comment period.

Governor Dunleavy announced that Alaska Attorney General Treg Taylor would resign effective August 29, 2025, after serving in the position since 2021. Dunleavy did not immediately announce a replacement for Taylor at the helm of the Department of Law. Taylor's resignation marks the second departure from the Dunleavy administration in August, following former Revenue Commissioner Adam Crum.

Dunleavy's office stated in August 2025 that Alaska had no plans to send National Guard members to Washington, D.C. and had not received a request to deploy personnel in response to President Trump's declaration of a "crime emergency" in the nation's capital. The Alaska National Guard confirmed it had not received any request to provide personnel or resources to support operations in Washington, D.C., distinguishing Alaska from six other Republican-led states that sent or pledged to send guardsmen to assist with federal efforts in the district.

Dunleavy's administration lost a federal appeals court decision regarding management authority over subsistence fishing on the Kuskokwim River in Southwest Alaska. The 9th Circuit Court of Appeals upheld a lower court order requiring the state to cease interfering with the federal government's management of rural subsistence fishing priorities in the Yukon Delta National Wildlife Refuge. Alaska's Attorney General stated the state would appeal the ruling to the U.S. Supreme Court.

The Alaska Legislature overrode Governor Dunleavy's line-item veto of education funding, making approximately ten million dollars available to the Anchorage School District. The Anchorage School Board voted in August 2025 to appropriate more than six million dollars from the restored funding, directing the majority toward hiring 47 additional teachers to address high class sizes and allocating two million dollars toward teacher recruitment and retention initiatives. The district completed hiring of the first group of twenty teachers before the school year began and approved funding for an additional twenty-seven positions.

Governor Dunleavy called a 30-day special session in August 2025 to consider his education policy priorities, including teacher retention bonuses, open enrollment across school districts, and creation of an agriculture department. During the initial session convened on August 2, the Alaska House and Senate overrode Dunleavy's vetoes of $50 million in education funding and a bill on legislative oversight of oil and gas tax revenue, then adjourned without considering his proposals. Legislative leaders subsequently scheduled technical sessions with no quorum through the end of the 30-day period, effectively preventing further consideration of Dunleavy's education initiatives.

Dunleavy called a 30-day special session beginning August 2 to request that lawmakers reconsider his education policy proposals, which had previously been rejected during the regular session. Legislators instead overrode two of Dunleavy's vetoes on August 2, reinstating $50 million in education funding, and then scheduled minimal technical floor sessions for the remainder of the month rather than formally concluding the special session. The majorities in both chambers indicated through this scheduling approach that they did not intend to take action on Dunleavy's education proposals during the special session.

Governor Dunleavy issued a statement welcoming the prospect of Alaska hosting a meeting between President Donald Trump and Russian President Vladimir Putin, which Trump announced would take place on August 15, 2025. Dunleavy characterized Alaska's geographic location at the crossroads of North America and Asia as fitting for discussions of global importance and stated that Alaska has historically served as a bridge between nations. Dunleavy's office indicated it did not have immediate details regarding the specific time and location of the proposed meeting.

Dunleavy named Janelle Earls to serve as acting Alaska revenue commissioner beginning August 8, 2025, following the departure of Adam Crum after nearly three years in the position. Earls, who previously worked as administrative services director at the Department of Revenue, will serve in the role until Dunleavy selects a permanent replacement. Crum's departure came amid legislative scrutiny of the Department of Revenue's cooperation with the legislative auditor regarding state oil and gas tax collections.

Governor Dunleavy vetoed $50.6 million in public school funding, which the Alaska Legislature voted to override on August 2, 2025. The override required at least 45 of 60 state lawmakers to pass, necessitating support from at least some members of the Republican minority caucuses in both chambers. Ten Republican minority lawmakers voted in favor of the override alongside Democrats, independents, and moderate Republicans in the majority caucuses.

Dunleavy vetoed Senate Bill 183, legislation intended to compel the executive branch to disclose information about settlements paid by oil companies to resolve tax disputes with the Alaska Department of Revenue. Alaska legislators voted 43-16 to override Dunleavy's veto on August 7, 2025. The override enables the Legislative Auditor to examine whether the state has been settling tax disputes with oil companies at appropriate rates.

Dunleavy issued two executive orders effective immediately on August 6, 2025, directing his administration to reduce state spending and regulations. The first order established an annual government efficiency review process through the Office of Management and Budget to identify potential savings and recommend service contractions, with initial focus on grants to non-state entities and accounts payable. The second order instructed state agencies to eliminate 15 percent of existing regulations by the end of Dunleavy's gubernatorial term.

The Alaska Legislature passed Senate Bill 113 by a margin of 42-18 in the 2025 session, which modifies the state's corporate income tax calculation formula to apply to highly digitized businesses that generate sales in Alaska. The legislation changes how corporate income taxes are calculated for digital service providers to align with traditional brick-and-mortar companies rather than establishing a new tax rate. Governor Dunleavy was awaiting the bill for action at the time the article was written.

The Alaska Legislature adjourned its special session on August 2, 2025, after voting to override two vetoes issued by Governor Dunleavy. The legislature restored education funding that Dunleavy had cut from the state budget and overrode his veto of legislation expanding the investigative authority of state legislative auditors to obtain information in requested formats. The legislature did not consider Dunleavy's proposals to create a Department of Agriculture or implement his education reform priorities, with Senate President Gary Stevens stating these bills had been introduced in the previous session without gaining sufficient support.

On August 2, 2025, the Alaska Legislature voted 45-14 to override Gov. Dunleavy's veto of education funding in the state budget during a special session. Dunleavy had vetoed $50 million in education funding on June 12, reducing the per-student funding increase from $700 to $500 and citing declining oil revenues. The successful override restored the $700 per-student funding increase that the Legislature had originally passed on May 2.

Governor Dunleavy vetoed Senate Bill 183 on June 27, 2025, arguing the measure overstepped the separation of powers between Alaska's legislative and executive branches. The bill would have strengthened the state legislature's auditors' ability to obtain information "in the form or format requested" regarding state oil tax revenue. The Alaska Legislature voted 43-16 on August 2, 2025, to override Dunleavy's veto, allowing the bill to become law.

Dunleavy vetoed approximately $50 million in education funding from the state budget after the Alaska Legislature overrode his earlier veto of legislation that increased the state's education funding formula for the first time since 2017. On August 2, 2025, Alaska lawmakers held a joint session and voted to override both vetoes, restoring the $50 million in education funding with support from 35 bipartisan majority members and 10 Republican minority members, achieving the 45 votes required for an override. The veto overrides ended months of uncertainty for school districts across the state that had submitted budgets for the coming school year without clarity on funding levels.

Governor Dunleavy called for a special legislative session beginning August 2, 2025, requesting that lawmakers create a state agriculture department and adopt education policies. House and Senate majority leaders indicated they did not intend to consider Dunleavy's proposals during the special session, stating the policies were either unacceptable or required more deliberation than a 30-day August session could provide. The majority lawmakers identified their priorities as two veto override votes: one on approximately $50 million in education funding that Dunleavy had vetoed from the state budget, and another on a bill requesting further review of the state's oil and gas tax revenue that Dunleavy had vetoed in the previous month.

During the 2025 legislative session, the Alaska Legislature passed $40 million in school construction and maintenance funding, approximately 5 percent of the nearly $800 million that school districts identified as necessary for building repairs and maintenance. Governor Dunleavy subsequently vetoed more than two-thirds of that $40 million allocation. The funding shortfall left rural school districts, including those in remote villages, unable to address deteriorating infrastructure such as the Sleetmute school, which had experienced roof damage for nearly two decades.

Dunleavy vetoed $51 million from the state budget for Alaska's K-12 public schools, which will reduce the Base Student Allotment from $700 to $500 for the coming fiscal year. Dunleavy called a special legislative session to address the veto and subsequently requested that some Republican lawmakers not attend in an apparent effort to prevent a veto override. The Alaska State Legislature was scheduled to convene on Saturday to vote on whether to override the governor's veto.

Dunleavy vetoed HB 57, legislation that raised Alaska's base student allocation for K-12 education by approximately $175 million annually. After the legislature overrode this veto and the bill became law, Dunleavy subsequently vetoed approximately $45 million of the increased funding from the state budget. This marked the first instance in Alaska state history in which a governor vetoed K-12 formula funding.

Dunleavy vetoed $51 million in education funding that the Alaska Legislature had passed during the 2025 session, citing concerns about fiscal restraint despite growing state revenues. The veto reduced the base student allocation, the core formula used to fund schools, which had not been meaningfully increased since 2017, forcing school districts across the state to restructure finalized budgets and avoid further program cuts. The Legislature reconvened in special session in August 2025 to consider overriding the veto, which was constitutionally required to be reconsidered within five days of the next legislative session.

Dunleavy's administration signed a $28.5 million contract with K&E Alaska Inc. for engineering, environmental permitting, and construction work on a new ferry terminal at Cascade Point, located 30 miles north of Juneau, with a planned completion date of 2027. The Alaska Marine Highway Operations Board chair stated that the administration had not provided feasibility studies or business plans demonstrating the project's economic viability before the contract was executed. The contract covers site preparation, a bridge over Cascade Creek, and related infrastructure but does not include funding for the terminal structure itself, which the state intends to finance through federal funds.

Dunleavy released a list of education policy proposals to be included in legislation during a special legislative session beginning August 2, 2025, which he had called to address education and food security. The proposals included creating new charter school authorization mechanisms, establishing teacher recruitment and retention bonuses, and allowing students to enroll in schools outside their residential districts, all of which had been previously rejected by lawmakers. Dunleavy also planned to reintroduce an executive order to establish an agriculture department, similar to one lawmakers had rejected in March.

On July 2, Dunleavy called a special session of the Alaska Legislature beginning August 2 and outlined his policy priorities for the session on July 28. His agenda includes establishing the state education department as a charter school authorizer, implementing cross-district open enrollment, creating tribal compacting agreements with the State Department of Education, expanding a corporate tax credit program for education, providing reading improvement grants and tutoring, and offering recruitment and retention payments to teachers. The special session followed Dunleavy's June veto of education funding levels set by legislation passed earlier in the year, a veto that the Legislature had previously overridden by a 46-14 majority.

Alaska Revenue Commissioner Adam Crum announced his resignation from his position in the Dunleavy administration, effective August 8, 2025. Dunleavy acknowledged Crum's departure in a statement noting that Crum "successfully managed the state's fiscal resources" during his tenure. Crum's resignation occurred amid legislative scrutiny of the Department of Revenue's cooperation with the state auditor regarding potential uncollected oil and gas revenues.

Dunleavy called a special legislative session beginning August 2 to review his education policy proposals and plans for a new agriculture department. Dunleavy vetoed approximately $50 million in education funding that the legislative majority sought to restore through veto override votes, which require support from 45 of 60 lawmakers. Dunleavy requested that House Republican minority members absent themselves from the first five days of the session and scheduled the session during summer months when lawmakers were expected to be unavailable.

The Alaska Department of Education and Early Development appealed a federal decision regarding the state's failure of a disparity test for federal impact aid funding. The U.S. Department of Education rejected the state's exclusion of transportation funding from test calculations, resulting in the state being unable to use $80 million in federal impact aid to offset its obligation to school districts. The state's appeal argues the federal department incorrectly counted transportation funding in the test calculations and requested the opportunity to retake the test if the appeal is unsuccessful.

Governor Dunleavy vetoed House Bill 70, legislation that would have permitted licensed paramedics and emergency responders to provide emergency medical treatment to injured police and rescue dogs. The bill had passed the Alaska House by a 32-8 vote and the Alaska Senate by a 20-0 vote. In his veto message, Dunleavy stated that the veterinary community had warned the bill would blur professional scopes of practice, increase liability exposure, and duplicate existing services, and that given the rarity of canine field emergencies, expanding state authority in this area was neither necessary nor prudent.

Senate Bill 133, sponsored by Sen. Jesse Bjorkman and Rep. Justin Ruffridge, became law on July 15, 2025, without the signature of Gov. Mike Dunleavy. The legislation imposes new requirements on health insurance companies and providers regarding medical authorizations, including a 72-hour decision deadline for most requests, mandatory explanations of denial decisions, and provisions that treat unanswered requests as approved. The law also includes specific protections for patients with Stage 4 advanced metastatic cancer and establishes reporting requirements for the State Division of Insurance, with an effective date of January 1, 2027.

Governor Dunleavy allowed Senate Bill 133 to become law without his signature on July 14, 2025. The legislation establishes 72-hour deadlines for insurers to respond to prior authorization requests submitted by fax or routine means, and 24-hour deadlines for expedited requests. The bill, which passed unanimously in both chambers, includes exceptions for generic drug requirements and special provisions for cancer patients under step therapy protocols.

Dunleavy appointed John W. Wood to the Alaska Judicial Council on May 29, 2025, to fill a non-attorney seat with a term expiring in 2031. A citizen group, Alaskans for Fair Courts, filed a lawsuit in Anchorage Superior Court on July 18, 2025, contesting the appointment on grounds that Wood is a licensed attorney and therefore ineligible for a position constitutionally reserved for non-attorneys, and that he held a state contractor position at the time of his appointment, which the lawsuit characterizes as a conflict with eligibility requirements. The lawsuit seeks a declaratory judgment regarding Wood's eligibility and contends that the controversy impairs the Alaska Judicial Council's ability to carry out its functions.

Dunleavy vetoed approximately $50 million in education funding from the state budget, contributing to layoffs announced by the Anchorage School District. The veto occurred alongside a separate federal funding freeze by the Trump administration that withheld $14 million from the Anchorage School District and $46 million intended for Alaska schools overall. The combined reductions prompted the district to eliminate 34.5 positions, including 15 teacher expert roles, though only five employees were laid off initially as most affected staff were reassigned to vacant classroom positions.

The Matanuska-Susitna Borough School District faces potential cuts to millions in federal education funding following a pause announced by the Trump administration in early July 2025. The district received more than $8 million in federal grants the previous year for programs including migrant education, teacher training, STEM initiatives, English learner education, and after-school programs. District officials indicated that without release of these funds before school starts in mid-August, programs such as tutoring, preschool, and professional development could be reduced or eliminated.

Alaska kindergarten through third-grade students demonstrated improved reading proficiency during the 2024-25 school year, with 60% of students reaching nationally defined benchmark levels by year's end compared to 44% at the beginning of the school year. Governor Dunleavy attributed the improvement to the Alaska Reads Act, which was signed into law in 2022 and established reading curricula, screening assessments, teacher training programs, and funding for school district reading initiatives. The state reported that reading proficiency gains continued for a second consecutive school year, following similar improvements during the 2023-24 school year when proficiency increased from 41% to 57%.

President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, legislation that includes provisions affecting Alaska's energy sector. The law increases federal lease sales on Alaska land, eases permitting requirements for oil and gas development, and eliminates Biden-era tax credits for wind and solar projects. Industry observers noted the bill may facilitate future oil and gas investment in Alaska while potentially complicating efforts to address the state's natural gas crisis by removing incentives for renewable energy development.

The Trump administration indicated in a court filing that it was actively considering reconsideration of past Environmental Protection Agency and U.S. Army Corps of Engineers decisions that blocked the Pebble mine project in Alaska's Bristol Bay region. The Department of Justice stated the administration was open to reconsidering the EPA's 2023 veto of mining activity in the project area and was negotiating a potential settlement to a lawsuit filed by Pebble Limited Partnership, the project's developer. A reversal of the EPA veto would allow the company to pursue reconsideration of the Army Corps' 2020 denial of a key wetlands permit.

Governor Dunleavy vetoed $200 of the Alaska Legislature's proposed $700 base student allocation increase for education funding. The Juneau Board of Education anticipated an additional $994,688 in revenue for the next school year pending the outcome of an Alaska Legislature special session in August, where lawmakers may vote to override the governor's veto. The school board voted to allocate these expected funds toward paying off food service and transportation debt and creating two new administrative positions.

Dunleavy allowed legislation reducing Alaska's vehicle rental tax to become law without his signature in July 2025. The law establishes a 9% tax rate on traditional brick-and-mortar rental companies, down from 10%, and creates a new 7% tax rate for online platforms such as Turo that had not previously been subject to the tax. The measure resolves a yearslong legal dispute between the state and online vehicle rental platforms while reducing state revenue by an estimated $1.6 million annually, offset potentially by new collections from online platforms that had not paid the rental tax.

Governor Dunleavy vetoed Senate Bill 39 / House Bill 132, legislation passed by both chambers of the Alaska Legislature that would have imposed a 36 percent interest rate cap on consumer and small business loans up to $25,000 and implemented restrictions on community bank partnerships for lending expansion. The bill would have modified the Alaska Small Loan Act and altered terms for loans in that amount range. Dunleavy's veto prevented the implementation of these lending restrictions in Alaska.

Dunleavy requested that House Republican minority members not attend the first five days of an August special session he called, citing his desire to prevent the legislature from overriding his vetoes. Under Alaska law, legislators must vote on veto overrides within five days of convening, and an override of a budget veto requires support from 45 of 60 lawmakers. Dunleavy had previously vetoed $51 million in education operating funds, $25 million in school maintenance funds, $27 million in fire suppression funds, and $10 million in disaster relief funds, among other bipartisan bills.

Dunleavy issued a proclamation on Wednesday calling for a special legislative session to begin in Juneau in August focused on enacting education reforms and establishing a new agriculture department. The special session announcement followed the Alaska House and Senate majorities rejecting Dunleavy's education reform priorities during the regular legislative session and overriding his veto of an education funding bill in May. Senate President Gary Stevens stated that the legislature had addressed both education and agriculture issues during the regular session, characterizing the special session call as a response to proposals that had not gained legislative support.

Dunleavy vetoed legislation passed by the Alaska Legislature that would have capped payday loan annualized interest rates at 36 percent. The bill would have removed payday lenders from a state exemption in lending laws and placed limits on interest rates and fees charged to borrowers. Dunleavy stated in his veto message that the legislation would have reduced short-term borrowing options for Alaskans while creating enforcement challenges for the state.

Dunleavy vetoed more than $50 million in education funding from the state budget in June 2025, weeks after lawmakers had overridden his previous veto of a permanent $180 million increase to the school funding formula. The veto included cuts to major maintenance projects across the state, including roof replacements, HVAC system repairs, and health and safety improvements at multiple schools. Dunleavy attributed the veto to declining oil prices that would reduce state revenues, stating the state lacked sufficient funds to meet all obligations.

Dunleavy vetoed $51 million in school formula funding from the state budget, marking the first time since the Base Student Allocation was enacted in 1999 that a governor refused to honor the statutory school funding formula. The veto resulted in a $5.2 million reduction in operational funding for the Fairbanks North Star Borough School District. The action followed five consecutive years of education funding reductions that had previously led to school closures and program eliminations across Alaska's public school system.

Governor Dunleavy issued a line-item veto of $76 million in school funding for the fiscal year beginning in July, reducing the Base Student Allocation to $500 per student rather than the $700 increase that had been enacted by the Legislature. This veto created a $4.3 million budget deficit for the Anchorage School District, prompting the school board to institute a hiring freeze and direct administration to compile a list of potential budget reductions. The district had previously reversed cuts after the Legislature overrode an earlier gubernatorial veto of education funding in May.

Governor Dunleavy vetoed $51 million in school formula funding from the state budget for the fiscal year beginning in July 2025, reducing a bipartisan education bill that the Legislature had previously passed with an override of his initial veto. The education bill had included approximately $180 million in annual increase to the state's $1.2 billion education budget, the first significant increase to the formula since 2017. Dunleavy stated in his veto message that the reduction was necessary to address declining state revenue and reduce general fund expenditures.

Dunleavy announced in June 2025 that he would issue line-item vetoes to reduce spending in the state budget, citing Alaska's strained fiscal situation and insufficient revenue to cover all obligations. The governor indicated that full details of his budget veto decisions would be announced soon, with a deadline of June 19, 2025 to sign the budget. Lawmakers and school administrators were awaiting clarification on whether Dunleavy would reduce a $180 million school funding boost that the Legislature had approved in May.

Dunleavy's administration placed BlueCrest Energy's Cosmopolitan Unit lease in Cook Inlet into default, citing the company's failure to meet drilling commitments over more than a decade of holding the lease. The state's Department of Natural Resources, through Commissioner John Boyle, issued a notice in May requiring BlueCrest to demonstrate by August 21 that it had secured investment for a $55 million oil well and development of an offshore platform to access natural gas reserves. The action was taken in response to declining natural gas production in the region and concerns about future supply shortages for heating and power generation in urban Alaska.

The Alaska Department of Education and Early Development, under the administration of Gov. Mike Dunleavy, published emergency regulations on Monday that would redefine how municipalities calculate their local contributions to school districts by including services provided at no charge, such as use of city-owned pools or libraries. Under the proposed rule change, school districts would effectively be charged rental fees for use of municipal facilities, with those fees subtracted from the amount of money local governments normally contribute to schools. The state school board was scheduled to vote on the regulations as soon as Wednesday morning, with potential for quick implementation once approved.

The Trump administration announced plans to lift environmental protections on approximately half of the National Petroleum Reserve on Alaska's North Slope, reversing restrictions imposed during the Biden administration and reopening the area to potential oil and gas drilling. The announcement was made during a visit to Alaska by U.S. Interior Secretary Doug Burgum, U.S. Energy Secretary Chris Wright, and EPA Administrator Lee Zeldin, who participated in events including a speaking engagement at Governor Dunleavy's sustainable energy conference in Anchorage. The Interior Department initiated a public comment period following the announcement, with final action to be determined later.

Dunleavy joined Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and EPA Administrator Lee Zeldin at Prudhoe Bay on June 2, 2025, for a rally with North Slope workers and international visitors at Pump Station 1 of the Trans-Alaska Pipeline System. The visit included meetings with dignitaries from Asian countries considering investments in the Alaska LNG project. The Cabinet members' visit demonstrated the Trump administration's commitment to expanding Alaska's oil and gas development.

Dunleavy issued Administrative Order 358, which established a freeze on the promulgation of new state regulations by all state agencies, effective immediately, while exempting regulations already out for public notice. The order also included a hiring freeze for most state agencies and restrictions on state workers' travel, announced as measures to address state spending concerns and focus agencies on essential services. The regulatory freeze has affected the implementation timeline of regulations required by Ballot Measure 1, which mandates paid sick leave, minimum wage increases, and restrictions on captive audience meetings for Alaska workers.

The U.S. Education Department informed Alaska on May 16, 2025, that the state had failed a federal equity test known as the disparity test, which measures funding gaps between the state's most and least funded school districts. Under federal Impact Aid rules, Alaska is permitted to deduct most federal education funding from its state contribution only if it passes the disparity test, and failure to comply places approximately $81 million in annual state education funding at risk. The Alaska Department of Education and Early Development stated it was evaluating options available to it, including filing an appeal with the Department of Law, and indicated it believed the state had complied with Impact Aid requirements.

Governor Dunleavy organized a task force that recommended the state enact regulations to limit intoxicating hemp products, which led the Alaska Division of Agriculture to implement restrictions on such products in 2023. The Alaska Industrial Hemp Association subsequently sued to overturn the regulations, challenging them on constitutional grounds including supremacy clause and commerce clause violations. A federal magistrate judge ruled in May 2025 that the state's regulations did not violate the U.S. Constitution, upholding the restrictions that require intoxicating hemp products to be sold only through licensed marijuana retailers.

Dunleavy vetoed House Bill 57, a comprehensive education funding package that would have increased the Base Student Allocation by $700 per student and boosted transportation funding, resulting in an additional $184 million annually to Alaska's school districts. The Alaska House and Senate voted to override Dunleavy's veto on May 24, 2025, making the bill law despite his rejection. School superintendents across Alaska's 53 districts subsequently urged Dunleavy to refrain from further reducing education funding from the state budget.

Dunleavy vetoed House Bill 57, education legislation that included a $700 increase to the Base Student Allocation and policy reforms developed with input from educators and communities across Alaska. The Alaska Legislature overrode Dunleavy's veto on May 20, 2025, securing the 46 votes required to enact the bill into law. The legislation represents the largest permanent increase to the Base Student Allocation in Alaska's history.

Dunleavy vetoed House Bill 69, which would have increased the base student allocation by $1,000 per student, days after its passage in April 2025. Dunleavy subsequently vetoed House Bill 57, an alternative education funding proposal with a $700 base student allocation increase, which the Legislature overrode on Monday by six votes, marking the first successful veto override since 2009. Dunleavy indicated he would veto Senate Bill 113, a corporate income tax measure contingent to the education bill's funding, stating he did not view it as a stable revenue source.

President Trump issued an executive order reinstating the Tongass National Forest Roadless Rule exemption, reversing an action taken by President Biden in January 2023. The exemption affects the 16.7 million-acre Tongass National Forest in Southeast Alaska and would add approximately 200,000 acres of old-growth timber to the roughly 230,000 acres already available for future harvest. The forest includes five million acres of productive old-growth forests, with significant portions already protected within national monuments, wilderness areas, and lands managed to retain their roadless character.

The Alaska Legislature adjourned its 2025 regular session without passing House Bill 16, a campaign finance bill that would limit individual donations to candidates to $2,000 per election cycle, or Senate Bill 64, comprehensive elections reform legislation including changes to absentee voting procedures. According to Senator Bill Wielechowski, officials from Governor Dunleavy's office communicated that Dunleavy would veto both bills if they reached his desk. The bills are expected to be reintroduced in the 2026 legislative session, with legislative leaders indicating they may seek veto-proof majorities or negotiate compromises to advance the measures.

Dunleavy vetoed House Bill 57 on Monday, legislation that would have increased the Base Student Allocation by $700 and implemented various education policy changes. In his veto message, Dunleavy stated the bill lacked sufficient education policy reform necessary to improve student outcomes and asserted there was no evidence that a permanent increase in the Base Student Allocation would improve educational outcomes. The Alaska Legislature scheduled a veto override session for Tuesday morning, having previously passed the bill 48-11, which exceeds the two-thirds threshold required for an override.

Dunleavy vetoed legislation that would have increased Alaska's education budget by $700 to the Base Student Allocation, stating that there was no evidence such an increase would improve educational outcomes. The Alaska Legislature voted to override Dunleavy's veto on May 20, 2025, with a 46-14 vote that exceeded the required 40-legislator threshold. The override resulted in a permanent $180 million increase to the state's $1.2 billion education budget, marking the first successful gubernatorial veto override in Alaska in more than a decade.

The Alaska Legislature approved an operating budget for the fiscal year beginning July 1 with a $1,000 Permanent Fund dividend, the lowest inflation-adjusted dividend since the program's inception in 1982. Governor Dunleavy's veto of a bipartisan education measure was overridden by the Legislature, allowing $700 million in Base Student Allocation funding to be included in the budget. The Legislature failed to authorize a draw of approximately $200 million from the Constitutional Budget Reserve to address the current fiscal year's projected shortfall.

Dunleavy vetoed House Bill 57, a bipartisan education package that would have raised the Base Student Allocation by $700 per student, translating to approximately $180 million in increased annual education spending. In his veto message, Dunleavy stated there was no evidence that a permanent increase in the Base Student Allocation would improve educational outcomes and that the bill in its current form did not serve the best interest of Alaskans. The veto set up an override vote in a joint legislative session, with lawmakers attempting to reverse the governor's decision before the legislative session ended.

A legislative conference committee approved a final state budget on May 17, 2025, that included a Permanent Fund Dividend of $1,000 for the fiscal year beginning July 1, representing the lowest inflation-adjusted payout since the dividend program began in 1982. The committee voted 4-2 to accept the Senate's $1,000 PFD figure rather than the House's estimated $1,400, with the reduction part of hundreds of millions in cuts designed to balance the $12 billion spending plan amid lower-than-expected oil revenues. Governor Dunleavy had previously backed a larger "full" PFD of approximately $3,800, though the conference committee determined such an amount would create an unsustainable deficit.

The Alaska legislative conference committee finalized the state operating budget draft in May 2025 with flat funding for most state services, eliminating previously considered additions across multiple agencies including the University of Alaska, Department of Transportation and Public Facilities, and Department of Public Safety. Dunleavy was mentioned as holding veto authority over the final budget, though the legislature had already removed most discretionary spending items before the draft reached his desk. The budget constraints resulted from low oil prices and reduced federal spending, reducing the Permanent Fund dividend to approximately $1,000 and requiring cuts to services despite inflation.

Governor Dunleavy announced the selection of Randy Bates, a former head of the Alaska Department of Environmental Conservation's Division of Water, as commissioner-designee for the Alaska Department of Environmental Conservation. Bates previously served as director of the Division of Habitat at the Alaska Department of Fish and Game and operates a commercial fishing business in Southeast Alaska. The appointment is subject to legislative confirmation, which is expected to occur in 2026 after the Legislature's next confirmation session.

Governor Dunleavy vetoed legislation earlier in the 2025 Alaska legislative session that would have increased the annual education budget by approximately $250 million, prompting lawmakers to draft a more modest measure increasing annual spending by roughly $177 million. Dunleavy subsequently indicated he would veto the revised education bill unless lawmakers approved additional policy changes, including an open enrollment measure allowing Alaska students to attend any public school regardless of residence, which lawmakers rejected. Dunleavy had until Monday, May 19, 2025, to veto, sign, or allow the education bill to become law without his signature, with lawmakers prepared to attempt a veto override if he rejected the legislation.

The Alaska Legislature unanimously rejected Dunleavy's nominee Samantha Smith to the State Medical Board on May 15, 2025, marking an unprecedented rejection of a gubernatorial appointee with all 60 legislators voting against confirmation. The Board of the Alaska Academy of Physician Assistants had submitted a letter opposing Smith's nomination, citing her limited experience in alternative medicine, lack of demonstrated understanding of rural healthcare challenges, and unwillingness to collaborate with other physician assistants. The Legislature also narrowly blocked Dunleavy's nominee to the commission overseeing teacher conduct, while approving the vast majority of his 99 other board and commission appointees.

Governor Dunleavy requested $500,000 in general-purpose funding for a Blood Bank of Alaska testing lab in the capital budget for fiscal year 2026. The Alaska Senate rejected the funding request, but the Alaska House of Representatives restored it during deliberations on Senate Bill 57. The House ultimately approved the capital budget with the Blood Bank funding included as one of few discretionary additions made during a year of constrained state revenue.

The Alaska Legislature held a joint confirmation session on May 14, 2025, in which it approved 97 of 99 gubernatorial appointments to state boards and commissions submitted by Dunleavy. The Legislature rejected the nomination of physician assistant Samantha Smith to the state medical board by a 0-60 vote, a result Senate President Gary Stevens characterized as historically unprecedented, with lawmakers citing concerns about her experience and performance during confirmation hearings. The Legislature also rejected the renomination of principal Kimberly Bergey to the Professional Teaching Practices Commission after determining she did not meet statutory requirements for the position.

Dunleavy signed legislation that increased penalties for drug dealers whose actions result in deaths, effective January 1, 2025. The new law was enacted months after the November 2024 death of 16-year-old Alena Toennis from a fentanyl overdose in the Matanuska-Susitna Valley. Though the suspect in Toennis's death was charged under existing statutes rather than the new law, her family held a public rally calling for full enforcement of the legislation in similar cases.

The Alaska Legislature advanced Senate Bill 64, a comprehensive election reform measure, to the House in the final days of the legislative session following input from the Dunleavy administration and bipartisan lawmakers. The bill includes provisions to allow voters to correct absentee ballot errors, establish a 10-day deadline for mail-in ballot counting, implement cybersecurity protections for voter registration records, and streamline the removal of ineligible voters from rolls. The measure was designed to address election accessibility, security, and result reporting timelines across the state.

Dunleavy hosted three Trump Cabinet members—Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and Environmental Protection Agency Administrator Lee Zeldin—at his fourth annual energy conference held June 3-5, 2025, in Anchorage. The conference addressed topics including artificial intelligence and energy demand, renewable energy and nuclear power, transmission and storage, and Alaska's oil, gas, and mineral resources. Dunleavy's office partnered with the U.S. Department of Energy to organize a pre-conference event on June 2 featuring directors of five national laboratories and other energy officials.

The Alaska House passed legislation sponsored by Representative Kevin McCabe that reduces the state rental vehicle tax from 10% to 9% for traditional car rental companies and establishes a 7% tax rate for peer-to-peer rental platforms such as Turo. The bill also requires online platforms to collect and remit taxes to the state and eliminates back-taxes owed by individuals who previously rented vehicles through such platforms without paying taxes. Governor Dunleavy previously vetoed similar legislation in 2024 that would have imposed an 8% tax on peer-to-peer platforms, citing concerns about taxation of a growing industry, and his office declined to indicate a position on the current year's bill.

Governor Dunleavy issued an administrative order on Friday instituting a hiring freeze, a ban on new state regulations, and travel restrictions for state workers, effective immediately, citing Alaska's dire fiscal outlook resulting from diminished oil revenue. The hiring freeze applies to full-time, part-time, and seasonal employees across state agencies, with exemptions for positions in the Alaska State Troopers, corrections and probation, and the Division of Public Assistance, and remains in effect until rescinded by the governor. Dunleavy's office characterized the order as establishing fiscal discipline across state government, though the Alaska State Employees Association expressed concern about its impact on state workers and services provided to Alaskans.

Dunleavy issued an administrative order implementing a statewide hiring freeze for public sector workers and a freeze on out-of-state travel with limited exemptions in response to falling oil prices and tightening fiscal conditions. In a letter to legislative leaders, Dunleavy stated his opposition to standalone tax measures being considered by the Alaska Legislature, characterizing such approaches as unsustainable fiscal policy. Dunleavy urged the Legislature to form a joint team with his administration to develop a long-term fiscal plan for the state amid a substantial budget deficit and diminished oil revenue.

Governor Dunleavy indicated during a meeting with Alaska superintendents that he intends to veto House Bill 57, legislation that passed the Alaska Legislature with bipartisan support to provide stable and adequate funding for public education. Dunleavy stated his intention to veto HB 57 because it does not include open enrollment between districts and expanded charter school measures that he favors, and he also expressed concern about reading incentive funding included in Senate Bill 113. The superintendent who authored this opinion piece characterized a veto of HB 57 as having consequences for school funding and teacher retention.

Governor Dunleavy threatened to issue a line-item veto of per-student funding increases in the next fiscal year's budget unless his education policy priorities receive legislative approval. The threat came during a call with state school superintendents and followed the Legislature's passage of House Bill 57, which increased the Base Student Allocation by $700 with a veto-proof majority that included some but not all of the governor's stated priorities. Dunleavy indicated he would veto both HB 57 and unspecified amounts of the Base Student Allocation from the budget bill, potentially reducing school funding below current levels unless his policy goals are enacted into law.

Dunleavy told Alaska school superintendents in a virtual meeting that he would veto House Bill 57, a bipartisan education bill that includes a $177 million annual school funding increase, unless the Legislature approves three of his education policy priorities: incentive grants for strong reading outcomes, open enrollment allowing students to attend school districts outside their residence, and expanded charter school provisions. Dunleavy also indicated that if lawmakers successfully override his veto, he would use his line-item veto power to reduce school funding in the state budget. The Legislature had broadly approved HB 57 the previous month, and legislators indicated they likely possessed sufficient votes to override a gubernatorial veto.

Dunleavy threatened to issue the first veto of statutory per-student education funding if lawmakers did not meet his policy demands regarding education funding. The dispute centered on disagreement between the legislature and Dunleavy over education funding levels during the legislative session. If the veto occurred and legislators did not call themselves into special session, school districts could receive less funding than they currently receive for an extended period.

The Dunleavy administration stopped providing the Alaska Legislature with organized summaries of oil tax assessments, interest, and penalties from the Department of Revenue starting in 2019, instead claiming it was only required to provide raw data. The Legislature passed Senate Bill 183 on a 19-0 vote in the Senate to require the executive branch to disclose information in the form requested by legislative auditors, with House consideration expected shortly. The change has prevented legislative auditors from completing a five-year oversight audit of the state's handling of billions of dollars in oil and gas tax disputes.

In December, Dunleavy proposed a state budget that included a statutory $3,900 Permanent Fund dividend and approximately $60 million in additional spending, projections that anticipated a roughly $2 billion deficit. On Tuesday, Dunleavy formally requested that lawmakers withdraw most of his spending requests, citing a significant decline in state revenue. The Alaska Senate subsequently approved an austere operating budget on Wednesday that included a $1,000 dividend and $172 million in one-time school funding.

In May 2025, Dunleavy's administration issued a directive restricting executive branch department staff from entering the state Capitol building without express approval from the governor's office during the final weeks of the legislative session. The policy, outlined in a memo by Jordan Shilling, director of the governor's boards and commissions office, applied to commissioners, deputies, directors, and liaisons through adjournment. The restriction resulted in the absence of Office of Management and Budget representatives from a Senate Finance Committee meeting on the state operating budget and the cessation of executive branch collaboration on at least one key legislative bill.

The Alaska Senate unanimously advanced Senate Bill 183 on Monday, a measure requiring state agencies to provide tax information to the Legislature's auditor in the requested format and clarifying that noncompliance could result in fines up to $5,000. The bill addresses a situation in which the Alaska Department of Revenue has declined since 2019 to provide the Legislature's auditor with oil and gas tax data in the format requested, instead submitting what lawmakers characterized as unusable information. The measure seeks to restore legislative oversight of oil and gas tax collections, which can total hundreds of millions of dollars annually, and was sent to the House for consideration.

Dunleavy's administration faced legislative efforts to address Alaska's seafood industry crisis through bills including House Bill 116, which would allow commercial fishermen to establish their own insurance pools, and House Bill 129 with its Senate counterpart Bill 130, which proposed modifications to the state's existing tax credit program for fisheries product development. These measures were advanced during a period of significant state budget constraints stemming from declining investment income and oil revenues. The bills reflected recommendations from a legislative task force and were designed to provide industry relief without imposing new costs on the state budget.

Governor Dunleavy proposed a Permanent Fund dividend of approximately $3,900 per recipient for fiscal year 2025 based on the statutory formula, which would have created a $2.1 billion state budget deficit. Dunleavy proposed addressing the deficit by withdrawing $2.1 billion from the Constitutional Budget Reserve, the state's primary savings account. The Alaska Senate Finance Committee subsequently proposed a $1,000 dividend instead, rejecting the use of Constitutional Budget Reserve funds and reducing the budget deficit through the dividend reduction.

House Bill 57, a compromise education bill containing provisions on student cell phone use, a $700 increase in the Base Student Allocation, student transportation funding, charter school regulations, and reading incentives, passed the Alaska Legislature by a veto-proof margin with a combined 48 votes across both chambers on April 30, 2025. The Senate passed the bill 17-3 and the House 31-8, exceeding the 40 votes needed for a veto override or the 45 needed if Dunleavy vetoes education-related funding in the following year's budget. Two Senate Republicans changed their votes between the bill's passage on Monday and Wednesday's final vote, citing concerns about provisions in the legislation that had emerged after the initial vote.

President Donald Trump signed the executive order "Unleashing Alaska's Extraordinary Resource Potential" on his first day in office, which received support from Governor Dunleavy and sought to expand logging in national forests including the Tongass. Subsequent federal orders aim to remove protections granted by the Roadless Area Conservation Rule, which shields over 9 million acres of the Tongass from development. The Dunleavy administration challenged the reinstatement of these protections, which the Biden administration had restored in January 2023.

The Alaska Legislature passed House Bill 57 on April 30, 2025, a bipartisan education package that includes a $700 increase to the Base Student Allocation, the state's per-student funding formula. The Legislature approved the bill on a combined 48-11 vote, exceeding the 40-vote threshold required to override a gubernatorial veto. Dunleavy had not announced whether he would sign, veto, or allow the measure to become law without his signature as of the article's publication date.

The Alaska House of Representatives voted 22-18 on April 30, 2025, to approve House Bill 16, which would reinstate campaign contribution limits that were eliminated by a federal appeals court ruling in 2021. The bill proposes limits of $2,000 per candidate per election cycle, $4,000 for governor's races, and $5,000 for donations to political parties, with adjustments for inflation every ten years. If approved by the legislature in substantially similar form to a ballot measure scheduled for 2026, the limits would take effect in time for the 2026 election, preventing the ballot measure from reaching voters.

The Alaska Legislature advanced HB 57, an education funding bill that increases the Base Student Allocation by $700 per student, with the Senate approving the measure on a 19-1 vote on April 28, 2025. Governor Dunleavy had previously indicated he would sign a $700 BSA increase if the bill included education policies preferred by his administration, and the Senate added several provisions intended to appeal to the governor and minority Republican legislators. A spokesperson for Dunleavy's office did not confirm whether the governor would support the amended measure as it moved to the House for final approval.

The Alaska Legislature passed House Bill 57, an education funding and policy measure that includes a $700 increase in the Base Student Allocation and incorporates provisions sought by both majority and minority lawmakers, with the Senate approving it 19-1 on Monday. The bill's passage was temporarily halted due to a drafting error requiring correction of a single word to comply with state constitutional requirements, with final passage expected Wednesday. Legislative leaders indicated the bill was designed to receive sufficient support for a potential veto override by Dunleavy, who previously vetoed a larger education funding increase.

On April 17, Dunleavy vetoed House Bill 69, which contained a $1,000 increase to the Base Student Allocation for Alaska schools. The veto occurred as the Alaska Association of Student Governments was holding its statewide conference in Sitka, where delegates unanimously passed a resolution calling for at least a $1,000 BSA increase along with an annual inflation-based adjustment mechanism. Following Dunleavy's veto of HB 69, the Legislature shifted focus to House Bill 57, which proposes a $700 BSA increase and a 10 percent increase in student transportation funding.

Dunleavy expressed support for the Alaska LNG project, a proposed $44 billion gas pipeline from the North Slope, as the state agency advocating for the megaproject asked the Legislature to consider investing up to $800 million. The governor aligned with Alaska's three-member Republican congressional delegation in backing the initiative, which has received renewed attention following President Donald Trump's public endorsement. Dunleavy's position reflected a broader administration effort to advance the long-permitted pipeline project, which the state agency indicated was not dependent on legislative approval of the proposed state investment.

Dunleavy's office organized the three-day Alaska Sustainable Energy Conference, scheduled to begin June 3 in Anchorage, as part of efforts to engage Asian countries in the Alaska LNG project. Officials from Thailand and South Korea planned visits to Alaska in May to conduct on-site reviews of the project. The conference followed announcements that the National Energy Dominance Council was working to convene a separate summit in Alaska on June 2 with trade ministry officials from Japan and South Korea to discuss potential involvement in the natural gas development initiative.

The Alaska Legislature advanced House Bill 57 out of the Senate Finance Committee on Thursday, April 24, 2025, after modifying it to include a $700 increase in the Base Student Allocation and adding provisions for monitoring student academic progress, easing charter school regulations, and establishing a legislative task force on education funding. The revised bill was developed through discussions with legislators from both majority and minority caucuses as well as Dunleavy's office and represented a compromise effort following Dunleavy's veto of House Bill 69, which had proposed a $1,000 BSA increase. The bill is scheduled for initial floor debate on Friday with a vote likely to occur Monday, as lawmakers attempt to reach an agreement within the remaining four weeks of the legislative session.

The Alaska Senate Finance Committee unveiled a draft operating budget that reduces spending by more than $206 million compared to the House version adopted earlier in April 2025, eliminating most budget additions proposed by both the House and Governor Dunleavy. The committee removed an $81 million increase in K-12 public school funding, Dunleavy's proposed increments for state troopers and healthcare, and various other House additions including child care access funding and senior services. Despite the significant cuts, the draft budget still contained a projected deficit of between $70 million and $140 million, and did not utilize the Constitutional Budget Reserve unlike the House proposal.

The Alaska Senate Finance Committee unveiled a draft budget for fiscal year 2026 that includes over $100 million in agency reductions, including cuts to the Alaska Department of Corrections, the Alaska Permanent Fund Corporation, the Alaska Department of Health, and the Alaska Department of Public Safety. The Senate rejected over $60 million in baseline budget additions proposed by Dunleavy administration, with exceptions made only for Medicaid spending. The draft spending plan maintains a roughly $1,400 Permanent Fund dividend and $172 million in school funding while leaving an $85 million shortfall that lawmakers were continuing to address.

The Alaska Legislature advanced a measure containing a $700 per-student funding increase along with education policy provisions designed to address concerns raised by Gov. Dunleavy. Dunleavy had previously stated he would accept a school funding increase only if his education policy priorities were included in the legislation. The Senate Finance Committee advanced the bill on April 24, 2025, following Dunleavy's veto of a separate $1,000 per-student funding increase earlier in the legislative session.

Governor Dunleavy vetoed House Bill 69 on April 17, which would have permanently increased Alaska's Base Student Allocation by $1,000 to $6,960 and raised state education funding by $253 million. Following the failed veto override on April 22, the Alaska Senate Finance Committee amended House Bill 57 on April 23 to include a $700 increase to the Base Student Allocation. Dunleavy responded by stating the amended bill lacked needed education policy changes and introduced House Bill 204, which would provide a $560 BSA increase plus $35 million for specific programs aligned with his priorities for charter schools and homeschool programs.

The Alaska Senate Finance Committee attached a $700 Base Student Allocation increase to House Bill 57, a school phone policy bill, one day after the legislature failed to override Governor Dunleavy's veto of a $1,000 BSA increase. The $700 hike matches the amount Dunleavy proposed in a separate bill introduced that week and is comparable to a one-time BSA increase in effect during the year. The modification to HB 57 also increased student transportation funding by 10 percent and was designed to allow for expedited passage through remaining legislative procedures before the May 21 adjournment date.

Dunleavy vetoed House Bill 69, which would have increased the Base Student Allocation by $1,000 per student in Alaska's public school funding formula, citing concerns about the state's fiscal outlook and stating the bill contained no policy provisions. The Alaska Legislature voted 33-27 on April 22, 2025, to sustain Dunleavy's veto, falling seven votes short of the 40-legislator threshold required to override. Following the failed override vote, Dunleavy introduced an alternative education package that included a $560 BSA increase along with approximately $35 million for homeschooled students and reading incentive grants.

The Dunleavy administration received a long-delayed salary competitiveness study for Alaska state employees that revealed 83 percent of positions fall below the state's traditional 65th percentile benchmark, though administration officials emphasized that 72 percent meet or exceed a 50th percentile standard that was added to the study after preliminary results were reviewed. Department of Administration Commissioner Paula Vrana stated the administration would analyze salary deficiencies by job family, beginning with positions measuring 10 percent or more below market rates, with further examination of the salary adjustment process expected to take additional time. Vrana indicated that addressing identified shortcomings through salary adjustments would likely not occur until the 2026 or 2027 budget cycles, delaying implementation of findings from a study the Legislature had approved in 2023 for completion by June 2024.

Dunleavy vetoed House Bill 69, which contained a $1,000 increase in the Base Student Allocation per-student education funding, and the Alaska Legislature failed to override the veto with a 33-27 vote on April 22, 2025, falling seven votes short of the two-thirds majority required. Dunleavy indicated he would introduce an alternative bill proposing a $560 Base Student Allocation increase combined with approximately $140 per student in funds tied to specific policy objectives. The failed override vote left education funding unresolved with approximately one month remaining in the legislative session, as lawmakers continued to disagree on both the funding amount and conditions for any increase.

Dunleavy vetoed a $1,000 increase to the Base Student Allocation, Alaska's per-student education funding formula, stating the measure lacked policy provisions and that the state's fiscal outlook made the $250 million annual cost unaffordable. The Alaska Legislature scheduled a veto override vote for Tuesday, requiring 40 of 60 votes to reverse Dunleavy's action, though lawmakers and advocacy groups anticipated the override would fail. Dunleavy subsequently unveiled an alternative education bill containing a $560 BSA increase along with $35 million for homeschooling programs and reading incentives.

The Alaska House of Representatives passed House Bill 57 on April 16, 2025, by a vote of 34-6, requiring school districts to adopt policies restricting student cellphone use during school hours, including lunch and passing periods. The legislation permits cellphone use for translation, emergencies, medical reasons, and classroom instruction as determined by districts. Governor Dunleavy had proposed separate cellphone restriction legislation during the 2025 legislative session, though HB 57 from Representative Zack Fields became the leading measure on the issue.

Dunleavy traveled to Taiwan in April 2025 to promote Alaska's state-sponsored liquefied natural gas export project to business and government leaders on the island. China's vice consul in San Francisco sent correspondence to Dunleavy's office objecting to the trip, characterizing it as sending a signal to Taiwan independence forces and requesting a meeting with the governor's chief of staff. Dunleavy stated in an interview that he would not be deterred by the Chinese government's objections to the visit.

Dunleavy vetoed a public school funding boost earlier in the week, according to reporting on April 19, 2025 protests in Anchorage. The veto drew attention from education advocates at the demonstration, including a first grade French immersion teacher who carried a sign referencing the action. The funding veto occurred as protesters gathered to voice concerns about federal education policy changes proposed by the Trump administration.

Governor Dunleavy traveled to Taiwan to promote Alaska's liquefied natural gas export project to business and government leaders, meeting with Taiwan President Lai Ching-te and other officials. China's vice consul in San Francisco contacted Dunleavy's office during the trip, and the Chinese government subsequently issued a formal statement characterizing the visit as sending "a very wrong signal" to separatist forces and urging the governor to avoid similar trips in the future. Dunleavy stated in an interview that he would not be deterred by pressure regarding the visit.

Dunleavy vetoed House Bill 69, which would have increased Alaska's Base Student Allocation by $1,000 per student, citing insufficient policy changes and deteriorated state revenue conditions resulting from declining oil prices and potential federal funding reductions. Dunleavy announced he would submit an alternative bill to the Legislature providing a $560 BSA increase combined with policy-specific measures including statewide open enrollment, streamlined charter school authorization, expanded homeschool funding, and K-6 reading score incentives. The governor stated he would sign his alternative bill if the Legislature approved it, projecting it would reduce the state budget deficit to approximately $455 million compared to the $530 million deficit created by the House budget containing the vetoed $1,000 increase.

The Alaska Senate voted 16-4 on April 17, 2025, to pass Senate Bill 113, which clarifies that online sales to Alaskans constitute business activity subject to state corporate income taxation. The legislation is projected to generate approximately $65 million annually by closing a tax structure loophole that allows out-of-state businesses to attribute online sales to locations outside Alaska. If approved by the House and signed by Governor Dunleavy, the bill would represent the state's first new revenue-generating law in several years.

Dunleavy vetoed House Bill 69 on April 17, 2025, which would have increased the Base Student Allocation by $1,000 per student, citing deteriorated revenue conditions and the absence of policy provisions in the measure. The Alaska Legislature had narrowly passed the bill despite Dunleavy's prior threats to veto it after lawmakers removed policy language from the legislation. Dunleavy announced he would introduce an alternate bill containing a $560 increase to the Base Student Allocation along with $35 million for homeschooling programs, charter school expansions, reading incentives, and school cellphone use policies.

The Alaska Legislature passed House Bill 69 on April 11, 2025, which increases the state's per-student funding formula by $1,000 annually at an estimated cost of $253 million per year. The Senate voted 11 to 9 and the House voted 21 to 16 to approve the bill after the Senate Finance Committee removed education policy changes that had been previously proposed. Governor Dunleavy stated prior to the votes that he would veto the legislation if it did not include the policy modifications he had requested.

The Alaska House voted 20-17 on April 11, 2025 to reduce the Permanent Fund dividend included in its draft budget from the $2.5 billion statutory dividend originally proposed by Dunleavy to approximately $1,420 per person, which would cost $950 million and follow the "75-25" formula allocating three-quarters of the annual Permanent Fund draw to state services. Dunleavy's original proposal would have provided eligible Alaskans with roughly $3,900 but would have left the state with a $1.9 billion deficit. The reduced dividend was supported by all members of the Democrat-dominated majority except for one Democratic representative, while all 16 Republican minority members present voted against the reduction.

The Alaska Legislature narrowly approved House Bill 69, which increases the Base Student Allocation by $1,000 per student in the state's public school funding formula, with the Senate passing the measure on an 11-9 vote and the House on a 21-16 vote. Governor Dunleavy announced he would veto the legislation unless policy provisions aimed at improving educational achievement were added to the bill. Multiple lawmakers stated they lack sufficient votes to override an anticipated gubernatorial veto of the measure.

The Dunleavy administration filed a motion in federal court in April 2025 seeking to close the Chin'an Gaming Hall, a tribal gaming facility operated by the Native Village of Eklutna that opened in Anchorage in February 2025. The state's filing, made by Attorney General Treg Taylor, was part of a federal lawsuit the state initiated in February 2025 challenging state authority over Alaska Native allotments and seeking a preliminary injunction to shut down the hall. The Native Village of Eklutna stated the casino provided economic development revenue for the tribe and had generated significant economic activity and employment since its opening.

Dunleavy threatened to immediately veto House Bill 69, a stripped-back education measure that would provide a $250 million school funding increase through a $1,000 boost to the Base Student Allocation, after the Alaska Senate removed all policy provisions from the bipartisan package. Dunleavy stated the bill would do nothing to improve educational achievement or support charter schools and homeschools, characterizing it as lacking accountability. The Senate was set to debate amendments and potentially approve the measure on Friday, with passage requiring 40 of 60 state legislators to override a veto.

The Dunleavy administration released a salary study conducted by private contractor Segal in April 2025 that assessed the competitiveness of Alaska state employee wages compared with other employers. The study found that 32 percent of Alaska state employees earned below the 50th market percentile and 57 percent earned below the 65th percentile when compared with surveyed employers. The administration stated that the results would not automatically translate into pay increases and that salary updates would need to reflect an appropriate balance in compensation.

The Alaska State Senate advanced House Bill 69 to the floor on April 9, 2025, after the Senate Finance Committee stripped the legislation to a single provision increasing the Base Student Allocation by $1,000 to $6,960 per student. Governor Dunleavy stated on social media that he would veto the bill immediately if it reached his desk without amendments addressing policy measures, stating the bill "does absolutely nothing to improve educational achievement" and lacks accountability measures. Senate President Gary Stevens indicated he expected the Senate to pass the bill on Friday and anticipated a gubernatorial veto, while noting the possibility of attempting a veto override.

Dunleavy proposed in December a budget that would implement a statutory Permanent Fund dividend following the 1982 statutory formula, which would result in approximately $3,900 for eligible Alaskans. The Alaska House Finance Committee advanced a draft budget with a statutory PFD but included a $1.9 billion deficit, creating disagreement within the legislature over the dividend amount, school funding levels, and overall budget size. House leadership indicated they would not advance an unbalanced budget to the Senate without further negotiations with minority legislators on how to balance revenues and expenditures.

Dunleavy administration delayed the release of a state employee salary study that was originally due at the end of June 2024, with administration officials indicating in January 2025 that the report would be released by the end of March before missing that deadline as well. The salary study, contracted to Segal and expected to cost approximately one million dollars, examines the competitiveness of state employee compensation and was intended to inform contract negotiations between the state and the Alaska State Employees Association. The Alaska State Employees Association filed a lawsuit seeking release of both the final report and earlier drafts, with a judge granting expedited consideration of the union's motion for preliminary injunction in February 2025, though no ruling had been issued as of April 2025.

Dunleavy submitted a proposed $14 billion state budget in December 2024 with a roughly $1.5 billion deficit that included a full Permanent Fund Dividend and no education funding increase. The House Finance Committee made adjustments to Dunleavy's proposal during the committee process, resulting in a revised budget with a $1.9 billion deficit due to increased education spending and lower revenue forecasts. The revised budget was sent to the House floor for a vote, though legislative leaders indicated the full PFD and deficit size were unlikely to survive the full legislative process.

Governor Dunleavy signed Senate Bill 43 into law on April 3, 2025, officially designating March as Women's History Month in Alaska. The legislation directs schools, communities, and organizations throughout the state to recognize and honor the contributions of women in Alaska's history and development. The bill was sponsored by Senator Elvi Gray-Jackson and carried in the House by Representative Carolyn Hall.

The Alaska Senate Education Committee advanced an amended version of House Bill 69 on April 2, 2025, which included a $1,000 increase to the Base Student Allocation, the state's per-student funding formula. The bill incorporated policy provisions designed to appeal to Governor Dunleavy, including requirements for school districts to set target class sizes, academic improvement recognition programs, and easier charter school appeal processes. The measure advanced from committee with unanimous support, though its total cost had not yet been estimated.

The Alaska Department of Health received a federal warning in March 2025 that the state risked losing federal funding due to a persistent backlog in processing Supplemental Nutrition Assistance Program applications, with the state meeting required deadlines only 36 percent of the time against a federal standard of 95 percent. The Dunleavy administration had previously spent more than $60 million beginning in 2023 to address the backlog through computer upgrades, contract workers, and food pantry supplies, and had removed an interview requirement that temporarily reduced delays but resulted in a $12 million federal fine for non-compliance. Following reinstatement of the interview requirement, the backlog returned, with less than half of food assistance applications processed on time in February 2025.

The Alaska Legislature passed Senate Bill 43, which establishes March as Women's History Month in Alaska, allowing schools, community groups, and public and private agencies to honor women's historical contributions through appropriate activities. The Senate unanimously approved the measure, while the House passed it on a 33-2 vote on March 28, 2025. The bill now awaits consideration by Governor Dunleavy.

The Alaska Legislature passed Senate Bill 15 on April 2, 2025, which would allow 18- to 20-year-olds to serve alcohol under supervision in restaurants, breweries, and hotels, though not in bars or liquor stores. Governor Dunleavy vetoed the bill along with four others, citing potential legal challenges, despite the Legislature having approved an nearly identical version the previous year after the constitutional deadline for the legislative session. The measure also requires warning labels about alcohol's cancer risks at all points of sale.

The Alaska Gasline Development Corporation board approved a binding agreement on Thursday transferring majority ownership of the Alaska LNG project to the Glenfarne Group, a New York-based energy infrastructure company founded in 2011. Under the deal, Glenfarne will lead the $44 billion project's development toward construction and operation, taking over from the state agency that has managed the initiative independently since major oil companies withdrew their partnership in 2016. Governor Dunleavy stated that the project will strengthen U.S. geostrategic positioning in the North Pacific and provide energy security for Alaska residents, military bases, and businesses.

Dunleavy held a press conference in Tokyo, Japan on Friday to announce the Alaska Gasline Development Corporation's agreement with Glenfarne Group to develop the Alaska LNG Project, with Glenfarne taking a 75% stake in the project's subsidiary. The project includes construction of an 807-mile pipeline, an LNG export terminal in Nikiski with capacity for 20 million tons annually, and a carbon capture facility on the North Slope. Dunleavy stated he had been traveling to Asian countries to promote Alaska gas and indicated the project has obtained necessary permits, rights of way, and federal government support.

The Alaska House Finance Committee unanimously approved a $79 million unallocated cut to the state's draft operating budget on March 26, 2025, which would direct Dunleavy to determine where reductions would be implemented if approved by the full Legislature. The amount targeted spending that the Dunleavy administration had added to the baseline budget in recent months, according to legislators. A legislative attorney cautioned that the approach could raise constitutional concerns, though the amendment specified that cuts should prioritize agency efficiencies over employee layoffs.

Following a federal judge's ruling on March 27, 2025, the Alaska Industrial Development and Export Authority indicated it may pursue seismic exploration work in the Arctic National Wildlife Refuge during the next winter season on leases the Biden administration had canceled in 2023. The agency, led by executive director Randy Ruaro, stated that a full exploration program may not be feasible due to restrictions imposed by the Biden administration in December, though limited seismic surveys could be possible. Ruaro indicated the agency is pursuing court challenges and may work with the Trump administration to reverse the Biden-era restrictions on exploration activity.

Governor Dunleavy introduced legislation during the 2025 Alaska legislative session that would require absentee ballots to be received by Election Day, aligning with a Trump executive order issued in March 2025 that established the same requirement for federal elections. The bill represents one of several voting law revisions proposed by Dunleavy, who stated in his January 21 letter to the legislature that the changes aim to reform the Alaska election code and bolster public trust in the election system. Under current Alaska law, mailed ballots can be counted up to 15 days after Election Day if postmarked by that date, a provision the proposed legislation would eliminate.

A federal judge in Alaska ruled that the Biden administration lacked authority to cancel seven oil and gas leases issued for the Arctic National Wildlife Refuge, determining that a 2017 tax law permitted lease cancellation only by court order. The ruling returned the matter to the Department of Interior for further action and addressed leases stemming from the first lease sale held in early 2021 in the refuge's coastal plain. Dunleavy issued a statement expressing approval of the judicial decision regarding the lease cancellation ruling.

The Alaska State Medical Board, whose members were appointed by Dunleavy, issued a statement on March 27, 2025, requesting that the Alaska Legislature enact legislation to ban hormonal and surgical treatments for minors seeking gender transition, citing insufficient evidence of long-term benefits and risks of irreversible harm. The board stated its position that such interventions lack legitimacy as standard medical practice for those under 18 years old and recommended legislative limits while promoting psychological support and counseling as alternatives. The statement carries no binding authority, as Alaska currently has no statute banning gender-affirming care for minors, though the board is charged with overseeing medical practitioner licensure in the state.

On March 19, 2025, the Alaska Legislature voted 32-28 to pass a resolution disapproving an executive order from Governor Mike Dunleavy that would have created a cabinet-level Department of Agriculture. The vote was largely along caucus lines, with members of the multipartisan House and Senate majorities supporting the disapproval motion. Legislators cited concerns about the use of executive order rather than legislation, noting that an executive order could not be amended and limited opportunities for public input on the department's structure, while some also objected to the estimated costs of establishing the new department.

Dunleavy proposed a $159.4 million operating budget for the Alaska Marine Highway System for the coming fiscal year, with the proposal relying on the federal government to provide the majority of those funds. This budget proposal came as the state unveiled a 20-year long-range plan seeking approximately $3 billion in vessel and infrastructure spending along with annual operating budgets rising to $207.4 million by 2025. Dunleavy's proposed budget allocation stands in contrast to federal funding goals, as U.S. Senator Lisa Murkowski indicated that $700 million in federal infrastructure funds were intended for vessel upgrades and capital improvements rather than operating expenses.

The Dunleavy administration requested $2.7 million in funding to compensate approximately 32,000 public sector workers across Alaska who experienced a delay of more than four months in retirement benefit contributions following a November computer system breach in the Division of Retirement and Benefits. The requested allocation includes approximately $1.5 million for the Public Employees Retirement System, over $1 million for the Teachers Retirement System, and under $100,000 for a supplemental account, with amounts calculated using the U.S. Department of Labor's Voluntary Fiduciary Correction Program. The affected workers include employees of cities, boroughs, and school districts throughout the state who relied on the state to manage their retirement accounts while the system was migrated to a remote server following the breach.

The Alaska Legislature voted 32-28 on March 19, 2025, to reject an executive order issued by Gov. Dunleavy to establish a state agriculture department. Dunleavy had announced the plan in December 2024 to create a cabinet-level department intended to improve Alaska food security, citing that approximately 95 percent of Alaska's food comes from outside the state. The Legislature's rejection meant the proposed department would not be established, as legislators can only approve or reject executive orders without the ability to amend them.

Dunleavy expressed support for the West Susitna Access project, a proposed 100-mile road running from Point MacKenzie to an airstrip in the West Susitna region northwest of Anchorage. Dunleavy stated that the access road would support development of timber, coal, and renewable energy sources in addition to recreational opportunities. The project has faced opposition from conservation groups and some lodge operators who argue it would harm wildlife, wilderness, and outdoor-based employment in the region.

In January 2025, Dunleavy issued an executive order to establish a cabinet-level Department of Agriculture, which would transfer the Division of Agriculture and its 37 employees from the Department of Natural Resources to a new independent agency with its own commissioner. The administration initially estimated the department would cost an additional $2.7 million but revised that estimate on March 7 to indicate the department could be established at no cost by reclassifying or transferring existing staff. Alaska legislative leaders indicated the proposal faced rejection due to concerns about costs amid a $536 million budget deficit over two fiscal years, despite initial broad support for the plan.

The Alaska Department of Revenue released a revised state revenue forecast on March 12, 2025, estimating $6.23 billion in general-purpose revenue for the 2025 fiscal year, approximately $30 million less than the prior fall forecast. Under Dunleavy's proposed spending plan, this revised forecast results in a $200 million deficit for the current fiscal year and a $1.64 billion deficit for the 2026 fiscal year beginning July 1. The legislature is examining alternative budget scenarios to address the projected deficits, with lawmakers expected to modify the governor's spending plan before the current legislative session concludes.

The Alaska House advanced House Bill 69 on March 12, 2025, a school funding measure that includes the largest nominal increase to school formula funding in state history, with an estimated annual cost of approximately $275 million. The bill passed in a 24-16 vote after three days of debate and includes policy provisions such as cellphone limits in schools, financial incentives for reading improvement, and expanded school choice options. Governor Dunleavy had previously demanded that any education funding increase be paired with policy proposals to improve student math and reading scores and had vetoed a sweeping education measure the prior year that lacked his proposed charter school expansions.

Rep. Kevin McCabe introduced House Bill 120 on February 26, 2025, which would require Governor Mike Dunleavy to issue a request for proposals to sell the state-owned Alaska Railroad. Under the bill, the purchaser would be required to continue operating the railroad for a minimum of 50 years, the sale price could not be less than an independent appraisal value, and the final sale agreement would require legislative approval. The bill also mandates that a portion of sale proceeds be set aside for constructing new railroad spurs and rail lines to access resource-rich areas of the state.

Dunleavy vetoed a sweeping education measure the previous year that did not contain his policy priorities regarding student outcomes. House Bill 69, which would increase Alaska's annual education budget by more than $250 million per year, was designed as a compromise that paired increased funding with policy provisions including financial incentives for reading improvement, expanded school choice, and charter school protections that aligned with Dunleavy's stated priorities. The Alaska House debated dozens of amendments to HB 69 during a marathon session on March 10, 2025, with a final vote on the bill expected later that week.

Dunleavy issued an executive order in January to establish a cabinet-level Department of Agriculture by transferring the Division of Agriculture and its 37 employees from the Department of Natural Resources. The administration initially estimated the new department would cost an additional $2.7 million but revised that estimate to no cost, proposing to reclassify or transfer existing staff rather than hire new employees. Alaska legislative leaders indicated the plan could be rejected within the following week, citing budget constraints and competing fiscal priorities including public school funding.

Governor Dunleavy responded to President Trump's remarks supporting the Alaska liquefied natural gas pipeline during a March 4, 2025 address to Congress, stating that the president's backing "will ensure this massive LNG project is completed, and clean Alaska gas supplies our Asian allies and our Alaskan residents for decades to come." Trump stated in his speech that South Korea and Japan want to partner and invest in the roughly 800-mile pipeline project, which has an estimated cost of $44 billion and has stalled in recent years. Dunleavy, who had previously expressed skepticism about the pipeline earlier in his political career, joined other Alaska political leaders including U.S. Senators Dan Sullivan and Lisa Murkowski and U.S. Representative Nick Begich in welcoming Trump's public endorsement of the project.

House Bill 69, backed by the Democratic House majority, was rewritten and sent to the House floor with a $1,000 annual increase to the Base Student Allocation, down from the originally proposed $1,249 for the next year and $2,550 over three years. The revised bill included policy provisions aligned with some goals sought by Governor Dunleavy, including measures to ease charter school operations, establish a task force to study accountability measures and regulatory reduction, require cellphone use limits in schools, and allow lottery-based enrollment within districts. The House minority caucus rejected three amendments that would have reduced the BSA increase to $300, expanded funding for correspondence school students, and adopted additional policy provisions sought by Dunleavy.

Dunleavy signed legislation passed by the Alaska Legislature in October that changed the statutory term "child pornography" to "child sexual abuse material" throughout state law. The bill updated Alaska's criminal code to use the revised terminology in all relevant statutes and charges. The change took effect in the state's criminal justice system and is reflected in current prosecutions under the updated language.

Governor Dunleavy proposed a constitutional amendment, designated House Joint Resolution 12 and Senate Joint Resolution 13, that would modify the process for selecting judges to the Alaska Court System by requiring the Alaska Judicial Council to forward all applicants meeting minimum constitutional requirements to the governor rather than presenting a merit-based short list of finalists. If adopted by the Alaska Legislature, the amendment would be subject to a statewide vote in 2026 and would take effect after Dunleavy leaves office. The proposal would reduce the gatekeeping role of the nonpartisan council, which currently applies merit-based criteria to applicant pools before presenting nominees to the governor for final selection.

The Alaska House of Representatives voted 36-0 on Friday to reject Senate Bill 87, which would have implemented automatic inflation adjustments to the salaries of the governor, lieutenant governor, state commissioners, and legislators. The vote followed a 19-0 Senate rejection on February 7 and was taken in response to recommendations from the State Officers Compensation Commission that would have adjusted salaries beginning after the 2026 election. Unless Governor Dunleavy vetoes SB 87, the legislation will negate the commission's recommendations, which otherwise would take effect automatically.

Dunleavy vetoed House Bill 65, a $75 million bond package for a cruise ship dock in Seward, in the previous legislative session because the House vote occurred after the constitutional deadline for adjournment. The Alaska Legislature reapproved HB 65 in the 2025 session, with the state House voting 36-0 on February 17 and the state Senate voting 18-0 on February 26. Once signed into law, the bill will authorize the state-owned Alaska Railroad Corporation to borrow up to $135 million for construction of the new cruise ship dock, with repayment structured through a 30-year use agreement with Royal Caribbean.

Governor Dunleavy introduced House Bill 111, which would legalize inland fish farming in Alaska for species including tilapia, catfish, carp, and rainbow trout while maintaining the existing ban on salmon farming that has been in place since 1990. The bill specifies that farmed fish must be contained in escape-proof barriers and be sterile to prevent reproduction if they escape into the wild. The proposal received opposition from the House Fisheries Committee chair, the House Speaker, multiple legislators, environmental groups, and tribal officials, prompting Dunleavy to release a video clarifying that the bill does not permit salmon farming.

Dunleavy introduced House Bill 111 on Friday, which would reverse Alaska's 1990 ban on finfish farming and allow cultivation of freshwater species such as trout in closed inland systems, while explicitly prohibiting salmon farming. Several lawmakers, including Representatives Sarah Vance and Louise Stutes, expressed concerns that the bill could threaten wild fisheries and signal openness to future salmon farming expansion despite the exclusion. Dunleavy released a video statement Monday reiterating that the bill does not permit salmon farming and would create opportunities for small-scale freshwater aquaculture operations.

Governor Dunleavy vetoed funding for Alaska's ocean ranger program in 2019, which had been established under a 2006 ballot initiative to monitor cruise ship wastewater discharges. The ocean rangers, who lacked enforcement authority but forwarded monitoring data to enforcement agencies, had recorded approximately 20 to 25 wastewater violations annually between 2015 and 2018. Following the program's abolishment, detected wastewater violations increased to between 60 and 75 annually in recent years, coinciding with a rise in cruise ship visitation to Alaska.

Governor Dunleavy stated on social media that he does not support House Bill 69, a major school funding measure advancing through the Alaska House, and indicated he prefers closed-door negotiations between his office and a small group of legislators to reach a consensus education agreement. The Alaska House Finance Committee voted unanimously on Thursday to advance HB 69, which would increase the state's per-student funding formula by roughly $500 million over three years. The bill's advancement occurred despite Dunleavy's stated opposition and concerns from minority Republicans about how the measure would be funded given the state's projected $500 million deficit over two fiscal years.

Governor Dunleavy proposed a $180 million education funding package that includes policy-oriented directives governing how funds are spent rather than increasing the Base Student Allocation with district discretion. The proposal came as the Alaska House majority advanced House Bill 69, which would boost the Base Student Allocation approximately 22 percent in the coming fiscal year and over 40 percent across three years, to the House Finance Committee after the Education Committee became deadlocked due to an absent member. Dunleavy's approach contrasts with House Bill 69, which projects adding more than $330 million to the state budget by increasing the current $5,960 Base Student Allocation to $7,249.

The Alaska House advanced House Bill 69, which would increase the state's per-student funding formula by approximately $500 million over three years, using a procedural motion to move the measure to the House Finance Committee on February 19, 2025. The bill advanced with support from all 20 majority members present and one Republican member, while 18 House Republicans voted to keep the measure in the Education Committee, arguing it required further vetting. Governor Dunleavy had vetoed a similar education package the previous year, and stated support for linking school funding increases to provisions for improving student outcomes and increasing school district accountability.

Dunleavy vetoed House Bill 65, a bonding measure that would have provided $135 million in bonding authority to the Alaska Railroad Corp. to complete construction of a new cruise ship dock in Seward. Dunleavy stated that signing the measure into law would violate the Alaska Constitution. The Alaska House advanced a similar bonding measure on Monday with the intention of completing the dock construction in time for the 2026 cruise ship season.

Dunleavy withheld a draft salary study report from the public, claiming further review was needed, rather than releasing it by the June deadline set by the 2023 legislative approval of $1 million for the study. The Alaska State Employees Association filed a lawsuit alleging that Dunleavy modified the study methodology to compare state worker pay to the 50th percentile for most occupations instead of the traditional 65th percentile baseline used for establishing state worker compensation. The Alaska Marine Highway System currently faces a 24% employee vacancy rate, with the lawsuit asserting that Dunleavy's wage cut for new employees would worsen the staffing crisis.

Governor Dunleavy's staff engaged in closed-door negotiations with Alaska legislators regarding school funding during February 2025, with discussions described by lawmakers as positive though not yet producing a consensus agreement. Dunleavy supported modest increases to school funding tied to policy changes such as charter school expansion, while the House and Senate majorities favored a substantial funding boost separate from policy debates. House Bill 69, which would increase per-student funding by more than 35 percent at a cost of roughly 500 million dollars over three years, stalled in the House Education Committee due to an absent legislator, temporarily halting the majority's effort to advance the measure to the Finance Committee.

In January 2025, Dunleavy issued an executive order to create a cabinet-level Alaska Department of Agriculture, which will take effect on July 1 unless state lawmakers vote to block it by March 21. Alaska is currently one of only two states without a cabinet-level agriculture department, with agricultural regulation and support handled by a division within the Department of Natural Resources. The proposal was informed by recommendations from a state legislative task force on food security and aims to elevate agriculture as a policy priority at the cabinet level.

Governor Dunleavy's proposed budget for the Alaska Marine Highway System projects the Marine Highway Fund will be overspent by $8.5 million by the end of the coming fiscal year, a significant decline from the nearly $42 million balance in 2023. The administration's budget assumes the ferry system will increase ticket sales by $4 million annually in the current and upcoming fiscal years to achieve financial balance. The Marine Highway System director reported to state lawmakers that staffing shortages, with approximately 24% of positions vacant, prevent the operation of cross-gulf sailings, which limits the system's capacity to generate the additional revenue the budget depends upon.

Dunleavy in December proposed a largely status quo budget with a projected deficit of 1.5 billion dollars and did not introduce new revenue measures during the current legislative session. In 2023, Dunleavy introduced legislation to allow the state to bring in revenue from carbon sequestration, though the law has not yet yielded income for the state. Dunleavy previously vetoed a tobacco tax bill and a Turo tax bill.

The Alaska State Employees Association filed a lawsuit against the Dunleavy administration on February 11, 2025, challenging delays in the release of a salary study funded by the Alaska Legislature in 2023 to assess state employee compensation. The study was originally scheduled for completion in June 2024 but was delayed nine months to March 2025, with the administration citing the need for additional data. The lawsuit alleges that the administration modified the study's benchmarks through an August amendment, changing the comparison standard from the 65th percentile to the 50th percentile for most job classifications while keeping the 65th percentile only for positions related to life, health, and safety.

Dunleavy signed legislation in 2024 that increased award amounts for the Alaska Performance Scholarship by nearly 50 percent and expanded eligibility qualifications to allow students to qualify through either grade-point average or standardized test scores rather than both. The measure also expanded curriculum requirements to include career and technical education classes. According to the Alaska Commission on Postsecondary Education, the number of recent graduates using the scholarship nearly doubled from fall 2023 to fall 2024, with scholarship payouts reaching a record $13 million to over 2,200 students in the current fiscal year.

Dunleavy vetoed House Bill 189 during the previous legislative session, citing that the House passed it after the midnight deadline on the final day of the session. Senate Bill 15, which is nearly identical to the vetoed legislation, passed the Alaska Senate on a 19-0 vote and now advances to the House for consideration. The bill would allow Alaskans as young as 16 to work in restaurants and those as young as 18 to serve alcohol in establishments such as restaurants, breweries, distilleries, and wineries.

The Alaska Senate unanimously passed Senate Bill 87 on Friday, February 7, 2025, rejecting a recommendation by the State Officers Compensation Commission to implement automatic salary adjustments linked to inflation for the Legislature, Governor Mike Dunleavy, and top state officials beginning after the 2026 election. The commission's recommendation, made on January 29, would have adjusted salaries every two years based on the Consumer Price Index for these positions. The bill now proceeds to the House for consideration, where leadership indicated the chamber is likely to approve similar action.

Governor Dunleavy introduced House Bill 62 to establish a statewide tracking system for sexual assault kits that would allow survivors to privately monitor their kits through an online portal from collection to forensic testing. The legislation would establish expedited timelines requiring health care providers to notify law enforcement within 14 days that a kit is ready for testing, law enforcement to submit kits to forensic labs within 14 days rather than the current 30 days, and labs to complete testing within 120 days instead of the current 180 days. The bill would also require the state to maintain the tracking system at an estimated annual cost of approximately $200,000.

Dunleavy introduced legislation on February 6, 2025 to address Alaska's low standardized test scores, which ranked 51st out of 52 or 53 U.S. jurisdictions in three of four categories on the 2024 National Assessment of Education Progress tests for fourth and eighth graders. The bill proposes one-time funding for schools and education policy changes, including expanded funding for correspondence programs and a measure allowing charter school applicants to apply directly to the state rather than requiring initial approval from local school boards. Dunleavy cited a 2009-2019 study showing Alaska charter school students ranked at the top nationally to support the expansion of charter schools in the state.

Dunleavy filed Senate Bill 85 in the Alaska Senate on Wednesday, which would require all parties to a conversation to consent before it could be legally recorded, changing Alaska's current "one-party consent" law. The bill would exempt police officers from the consent requirement, allowing them to record members of the public without permission while members of the public would not have reciprocal recording rights. In his transmittal letter, Dunleavy stated the legislation would protect individual privacy rights by preventing surreptitious recording of conversations.

Dunleavy appointed John Binkley of Fairbanks to fill a vacant seat on the Alaska Permanent Fund Corporation board in February 2025. The six-person board had been operating with five members since July 2024 when board member Ellie Rubenstein resigned. Binkley, a former state senator and representative, replaces Rubenstein on the board that oversees the $80 billion Alaska Permanent Fund.

Dunleavy vetoed a bill that would have required the state of Alaska to consider public transit options in its transportation planning process. The legislation sought to modernize the statewide transit planning process by mandating public transit considerations during state transportation planning. The veto occurred during the 2026 legislative session.

Dunleavy established an education working group composed of two members from each of the four legislative caucuses to negotiate a consensus agreement on education policy and funding. The working group, led by the governor's newly-appointed legislative director Jordan Shilling, was given two weeks to develop a proposal addressing school funding and policy changes including charter school expansion. The negotiations addressed divisions between Dunleavy, who had supported modest funding increases tied to policy changes, and legislative leaders who had favored substantial funding increases separated from policy debates.

Dunleavy convened a five-person working group consisting of legislative leaders from both chambers and his legislative director Jordan Shilling to negotiate an education funding and policy compromise over a two-week period beginning in early February 2025. The group was tasked with resolving significant divisions between Dunleavy's education package, which proposed targeted policy changes including charter school authorization and correspondence school funding increases without per-student spending increases, and the House majority's bill seeking to raise per-student funding by more than 20 percent in the coming year and 40 percent within three years. Dunleavy indicated he would not veto a negotiated agreement reached through this process.

In December, Dunleavy proposed a budget plan that included a full statutory Permanent Fund dividend of approximately $3,900 and required drawing $1.5 billion from the state's Constitutional Budget Reserve to address a projected deficit. The proposal carried a total cost of $2.5 billion. The Alaska Legislature subsequently identified concerns with the budget proposal, with legislators stating the state could not afford the level of Constitutional Budget Reserve drawdown that Dunleavy's plan required.

In his annual address to the Alaska Legislature, Dunleavy stated that the state may need to implement short-term measures to address a natural gas supply shortage in Southcentral Alaska stemming from Cook Inlet production constraints. Dunleavy indicated that some solutions could be painful and unpopular but would be temporary in nature. At a subsequent news conference, Dunleavy noted that imported gas might serve as a backup option while the state focuses on longer-term energy solutions based on Alaska-based fuels.

The Dunleavy administration delayed the release of a state employee compensation study that was originally due in June 2024, citing missing data and classifying an early version released in June. The Department of Administration Commissioner Paula Vrana informed lawmakers during a February 2025 hearing that the study would now be released at the end of March, nine months behind schedule. The delay made it effectively impossible for lawmakers to incorporate the study's findings into the upcoming budget process or ongoing contract negotiations with the Alaska State Employees Association.

Dunleavy introduced House Bill 76 and its companion Senate Bill 82, an omnibus education package that includes provisions allowing students to attend any public school in the state, increases funding for homeschool programs, and transfers charter school authorization from school districts to the state. The bills contain no increase to the Base Student Allocation, which has remained essentially flat since 2017. Dunleavy stated during a press conference that his package specifies how education funding will be spent rather than providing general increases to school districts.

House Bill 69, sponsored by Rep. Rebecca Himschoot, proposed raising the Base Student Allocation by 22 percent in the coming year and more than 40 percent over three years. Governor Dunleavy vetoed a similar BSA increase during the previous legislative session and stated he would consider a funding increase if the Legislature supported his education goals including charter schools and homeschooling. The bill received overwhelming public testimony in support during its first hearing on January 29, 2025, with educators, students, and parents citing the need for increased funding due to inflation, while a small number of opponents argued for education reforms before any funding increase.

On January 31, 2025, Alaska Gov. Dunleavy introduced an education package that included approximately $117 million in annual targeted funding increases, comprising a $43 million increase for homeschooled students, $31 million for career and technical education, $14.5 million for student transportation, $22 million for reading instruction in elementary schools, and $4 million for residential schools. The legislation also proposed reforms to charter school approval processes and would allow students to enroll in schools of their choice regardless of residence, provided the school was not at capacity. The proposal set the stage for debate with legislative leaders who had indicated their intention to advance education funding increases without tying them to policy changes.

Dunleavy's administration delayed the release of a statewide salary study that was approved by the Legislature in 2023 and due in June 2024, instead ordering additional research and refusing requests from legislators, union leaders, and media to provide the draft report completed at that time. The Department of Administration stated the delay resulted from legislative changes and new collective bargaining terms that required updating previously collected data, and the administration paid an additional $80,000 to extend the study's deadline to March 31, 2025. Legislators expressed frustration during a House State Affairs Committee hearing on January 30, 2025, noting that the new completion timeline would not allow the study results to inform salary adjustment discussions that must occur before the next fiscal year begins on July 1.

In December, Dunleavy proposed a $7.7 billion state budget for fiscal year 2026 that would require spending $1.5 billion from state savings. The proposal comes as the Legislature considers House Bill 69, an education funding increase estimated to cost at least $300 million above the governor's education spending proposal, while state oil revenues face constraints from tax deductions tied to major development projects. Legislative budget analysts determined that the governor's budget proposal, combined with increased spending requests, would create a fiscal shortfall that cannot be resolved through the dividend formula adjustments the Legislature employed in the previous two years.

Alaska students ranked 51st among 53 U.S. jurisdictions in reading and math scores for fourth graders and in eighth-grade reading, and 47th in eighth-grade math, according to the National Assessment of Education Progress results released in January 2025. In response to the results, Dunleavy's administration issued a press release stating that the scores justified the governor's push for the Alaska Legislature to support policy changes including increased support for charter schools and homeschools. Dunleavy stated in a prepared statement that Alaska's education system required implementation of education reforms rather than increased funding alone.

Governor Dunleavy announced that Emma Pokon, the commissioner of the Alaska Department of Environmental Conservation, was selected by President Donald Trump to serve as regional administrator of the U.S. Environmental Protection Agency's Region 10 office, which oversees Alaska, Washington, Oregon, Idaho, and 271 tribal nations. Pokon has led the Department of Environmental Conservation since August 2023 and previously worked as a senior assistant attorney general handling environmental and natural resource matters. Deputy Commissioner Christina Carpenter will serve as acting commissioner of the Alaska department until a permanent successor is named.

Governor Dunleavy's appointee Emma Pokon, commissioner of the Alaska Department of Environmental Conservation, was selected by the Trump administration to serve as Region 10 administrator for the U.S. Environmental Protection Agency, a position overseeing environmental regulation in Alaska, Idaho, Oregon, and Washington. Dunleavy appointed Pokon to lead the state agency in December 2023, and she will transition to the federal role on February 5, 2025. Deputy Commissioner Christina Carpenter will serve as acting commissioner until Dunleavy selects a permanent replacement.

House Bill 69, introduced by Representative Rebecca Himschoot, proposes a permanent increase to the Base Student Allocation that would raise per-student public school funding by more than 20% in the next fiscal year and over 40% across three years. Governor Dunleavy's proposed budget for the following year contains no education funding increase, though he stated he would consider a boost if legislators approve other education policy goals he favors. The House Education Committee scheduled the bill for hearings on Monday with public testimony sessions planned for Wednesday morning and evening.

Governor Dunleavy vetoed a bipartisan education funding bill in the previous year that would have increased school spending by approximately $175 million annually. In the current legislative session, Dunleavy stated he could support an increase to the state's education budget of around $200 million annually if tied to education policy reforms, including changes to charter school approval processes. The Alaska House introduced legislation to increase public school funding by more than 35%, adding roughly $464 million to annual education spending.

Alaska Gov. Mike Dunleavy introduced legislation that would require all mail ballots to be received by the Division of Elections by Election Day, eliminating the current 10-day grace period for most voters and 15-day period for overseas voters. The bill would also close in-person early voting five days prior to Election Day, a change that would have affected more than 15,000 voters in the most recent general election who cast ballots in that window. In a letter to lawmakers, Dunleavy stated the bill would "improve election efficiency and integrity."

Dunleavy held a news conference on January 23, 2025, to comment on executive orders issued by President Trump that remove restrictions on resource extraction in Alaska. Dunleavy stated that Trump's actions would enable oil drilling in the Arctic, logging in Southeast Alaska, and mining and other resource extraction throughout the state. Administration officials including Attorney General Treg Taylor and Department of Natural Resources Commissioner John Boyle appeared at the event to discuss the policy changes.

Governor Dunleavy introduced House Bill 63 in the Alaska Legislature during the 2025 session to reform the state's election processes in response to concerns about ballot counting delays, election security, and operational issues from the previous year. The bill proposes changes including requiring all ballots to be received by Election Day rather than postmarked by that date, shortening early voting from 15 days to 10 days before Election Day, eliminating automatic voter registration during Permanent Fund Dividend applications, providing postage for absentee ballots, and allowing ballot counting to begin up to 10 days before Election Day. The legislation was referred to the House state affairs and finance committees following its introduction on Wednesday, January 22, 2025.

President Trump issued an executive order on January 20, 2025, directing the U.S. Interior Department to rename Denali to Mount McKinley within 30 days, while allowing Denali National Park and Preserve to retain its name. The order, titled "restoring names that honor American greatness," stated that the name change would reverse former President Barack Obama's 2015 decision to rename the peak Denali following years of advocacy by Alaska Native officials and groups. The federal government originally named the peak McKinley in 1896.

In 2024, Dunleavy vetoed an education funding bill that the Alaska Legislature attempted to override but fell one vote short of succeeding. The Legislature then approved a $176 million one-time funding boost for schools in May as a compromise measure. In December 2024, Dunleavy indicated he would unveil a roughly $200 million education package, though details and timing remained unspecified at the time of this article's publication in January 2025.

A legislative task force created by Senate Concurrent Resolution 10 developed draft recommendations to address challenges in Alaska's seafood industry, with proposals ranging from international marketing initiatives to local infrastructure projects such as shared cold-storage facilities. The task force, chaired by Senate President Gary Stevens, presented the draft recommendations at a two-day hearing in Anchorage on January 9-10, 2025, with a deadline to submit a final report to the full Legislature by January 21 or as late as February 1. Task force members indicated that a series of bills would likely follow based on the recommendations during the legislative session, which is scheduled to run through May 20, 2025.

Dunleavy led a state delegation to the United Arab Emirates in January 2025 to discuss investment opportunities in Alaska's resource industries, including energy, mining, critical minerals, construction, and logistics. The delegation attended the World Future Energy Summit in Abu Dhabi, where Dunleavy delivered a presentation, and participated in a reception hosted by the U.S.-UAE Business Council. The trip included representatives from the Alaska Gasline Development Corp., the Department of Natural Resources, and the Alaska Energy Authority, with estimated costs of approximately $75,000.

The Dunleavy administration filed a lawsuit in U.S. District Court in Alaska on Monday challenging restrictions imposed by the Biden administration on an upcoming oil and gas lease sale in the Arctic National Wildlife Refuge's coastal plain. The state argues that the restrictions violate the Tax Cuts and Jobs Act of 2017, which mandated lease sales in the refuge and required development of an oil and gas program in the area. The lawsuit was filed ahead of a federal lease sale scheduled for Friday in the 19 million-acre refuge.

Governor Dunleavy held a news conference where Frank Richards, president of the Alaska Gasline Development Corp., announced that the state-owned corporation had reached an exclusive framework agreement with an unnamed energy company to lead and fund development of the Alaska LNG project, a proposed trans-Alaska natural gas pipeline expected to cost at least $44 billion. Dunleavy stated that he had previously been skeptical of the pipeline but now believed significant progress was being made on the project, which he characterized as a long-term solution to an anticipated energy shortage in Southcentral Alaska. Richards indicated that a formal announcement of definitive agreements was expected within the next few months and that the proposed partnership would include an export facility.

Governor Dunleavy established the Governor's Task Force on Child Care, which released its second and final report on December 27, 2024, containing 56 recommendations to address child care availability and affordability in Alaska. The task force report identified actions including subsidies for families and streamlined bureaucratic processes for providers, with particular attention to reducing barriers in rural areas and supporting the child care workforce. The recommendations responded to documented shortages in the state's child care sector, which experienced a 10 percent decline in licensed providers following the COVID-19 pandemic.

Governor Mike Dunleavy established the Governor's Task Force on Child Care, which released its second and final report on December 27, 2024, containing 56 recommendations to address Alaska's child care shortage. The task force report recommends expanding subsidies for families, streamlining the caregiver licensing and hiring process, and applying geographic cost-of-living adjustments to income eligibility levels for subsidy determination. The recommendations address gaps between actual child care costs and subsidies received by families, which range from under $100 to several hundred dollars monthly depending on care type and location.