In Governor Dunleavy’s final state of the state before the state legislature, he maintained a position of optimism and hope for the opportunities in Alaska. Everything from disaster relief to a stable economic regime to attract investors from around the world.
“It’s the people of Alaksa that had the confidence to put me in this role to sere all Alaskans as governor,” said Dunleavy.
Dunleavy began the evening address with gratitude to the first responders that have been the force behind the recovery of the 85 state and federal disaster declarations while he’s been in office.
“Time and time again, they’ve rallied to the cause,” exclaimed Dunleavey, “they’ve answered the call of duty and saved lives.”
Moving from the natural disasters to those that were manmade, Dunleavy wasted no time in letting the room full of legislators know the impact the Biden Administrations policies had on Alaska. 74 executive actions were taken against Alaska, putting resource development in jeopardy. He reiterated that no other state suffered more under the Biden Administration than Alaska.
With confidence Dunleavy affirmed, “we have a president and administration in office that finally gets it.”
The executive actions issued by the Trump administration on day one of his second term highlight the importance of Alaska to the United States and Alaksa is open for business.
The governor highlighted several areas to that illustrated the commitment of the Trump administration, such as:
- $183M in federal highway funds for transportation infrastructure
- Reopening millions of acres of land for oil and gas development in NPR-A and ANWR
- Promoting the AK LNG project internationally with FAST-41 project permitting
- Permitting expansions at Greens Creek and Red Mine
- Advancing prospects at Graphite One and Donlin
- Advancing the King Cove Road
- $272M to revamp health care across the state
With the list of federal actions alone, the reality of the once in a lifetime opportunity is within grasp to bring to life many, transformative projects to the state.
“This is why elections matter,” added Dunleavy, “individuals can make a difference.”
Governor Dunleavy went on to discuss the economy starting with the jobs numbers declaring that the 4.7% unemployment Alaska boasts today is nearly equal to the national unemployment rate of 4.6%. Jobs are continued to forecast high in 2026 dues to a diversified economy and growing wages.
One notable point in the speech came when discussing the myAlaska app. Governor Dunleavy made a point to showcase that the state of Alaska has migrated over 100 state applications to the cloud. Microsoft even highlighted that through these efforts Alakas is on track to the be the first state to handle most of its business in the cloud. These enhancements include PFD applications, hunting and fishing license, and TSA approved mobile driver’s licenses.
“Once again, we’ve improved the services the people expect,” said Dunleavy.
With many major projects on the horizon and the economy diversifying in ways that require greater mobility, Dunleavy announced that five new air cargo carriers have been announced including Southwest to the Ted Stevens International Airport.
Cargo volumes have increased 32% and passenger traffic is up 23% showcasing why the Ted Stevens International airport is now the fastest growing airport in the country. Dunleavy also mentioned that the Alaska Marine Highway has a 98.5% uptime through enhanced preventative maintenance in addition to advancing critical infrastructure projects at ports around the state.
In terms of housing, the governor shared that Alaska Housing Finance Corporation (AHFC) has acquired 600 acres from the University of ALaksa for future development in Anchorage, Mat-Su, and Fairbanks. Later on, in the speech Dunleavy shared one of the priorities is to partner between the state and AHFC and willing municipalities to increase the housing supply. AHFC will provide buildable land, competitive mortgage rates for first time buyers and long-term tax breaks.
“It’s a win-win-win for the state, our communities, and most importantly our young people,” said Dunleavy.
This would build upon his plan for expanded internships, apprenticeships and other earn-as-you-learn programs to prepare the workforce of tomorrow. The family centric plans also included improvements in public safety and education. Dunleavy made a point to state that Alaska’s crime rate is down 41.8% since he took office.
“If you take Anchorage out of the mix, our state’s overall crime rate is well below the national average,” Dunleavy noted, “the violent crime rate in Anchorage is nearly three times the national average. It’s higher than Washington DC, it’s higher than Los Angeles, California. It’s higher than New York. And it’s higher than Chicago.”
The State of Alaska and the Municipality of Anchorage will be joining forces to reduce this crime rate. The phased approach encompasses retail theft, drug interdiction, and violent crime.
“Together we can make sure Anchorage isn’t just a safer place, but one of the safest int eh country for everyone who lives there and those who visit from around the world,” shared Dunleavy.
The educational highlights were notable with stats on students achieving step change improvements in outcomes during the 2024-2025 school year. By the end of the school year 3rd graders marked a 60% improvement and kindergartners marked a 62% improvement in reading at the benchmark level. A phenomenal improvement as a result of the Alaska Reads Act.
“Dead last is unacceptable. We can’t wait. Out children can’t wait. It’s past time that the voices or parents and students are given the same weight,” said Dunlvey when talking about weight his education plans. Those plans include increase access to charter schools, open enrollment, and increasing teacher retention.
The AK LNG project continues to be the flagship of the administration with new headwinds from the Trump administration advocating for the completion. Dunleavy recognized Glenfarne and the work they’ve done to bring the AK LNG project closer to reality. He highlighted the partnerships between Glenfarne, Worley, and Baker Hughes. Furthermore, the agreements from Taiwan, Korea, Thailand, and Japan, negotiating definitive LNG purchases.
A highlight of the gas pipeline was the announcement of gas sales agreements with Hilcorp and ExxonMobil. On the other end of the pipe are connection agreements for gas offtake with Enstar and Donlin Gold. Then comes the shipping of LNG. Another highlight was the agreement with Danaos, a Cyprus shipping company that will construct at least six tankers to transport LNG. Essentially, all the wet ink necessary for the pieces of the project to come together.
The big discussion of the night centered around a forthcoming fiscal package. In the last year of his final term, Dunleavy made a case to the legislature to end the fight over the PFD and various budget issues. His aim is to create an environment that is attractive to investors by injecting surety into the fiscals. The plan in anticipated to protect the permanent fund and dividend, grow savings, and incentivize investment focusing the objective on the next five years to solve this problem.
“We need stable, rules-based budget process that is clear, simple, and well understood,” stated Dunleavy, “this can’t be a short-term view.”
Though the night, the theme of optimism and forward thinking was clearly stated by the governor. As was the all of the above approach Dunleavy has taken as a matter of policy through his terms in office.