Congressman Nick Begich is flipping the script on Alaska’s share of oil revenues. In the budget reconciliation bill going through Congress, he has also thrown a life ring to Alaska legislators struggling to balance the state budget.
In what could be one of the most important developments for Alaska’s economy and ailing state budget, Begich, has advanced a budget reconciliation proposal to increase Alaska’s share of federal leasing revenues from 50% to 90% starting in 2035.
This would dramatically strengthen the state’s long-term fiscal outlook at a time when state lawmakers are looking to tax Alaskans and to actually dissolve their Permanent Fund dividends. This could instead grow the Alaska Permanent Fund dividend to new heights.
Under the Mineral Leasing Act of 1920, Section 35 (30 U.S.C. § 191), Alaska typically receives 50% or less of the revenues generated from oil and gas leases on federal lands within the state. Although the Alaska Statehood Act of 1958 states that Alaska is entitled to 90% of revenues from mineral leases on certain federal lands in the Arctic National Wildlife Refuge, that formula has unenforced provisions. In general, the State of Alaska receives 50% of revenue from oil and gas leases on most federal lands, as outlined in the Mineral Leasing Act.
Begich’s increase to 90% represents the most significant boost in Alaska’s revenue share since the Trans Alaska Pipeline System went into service, restoring parity that many Alaskans have long advocated.
Congressman Begich was the leader in crafting the Alaska-specific revenue-generating provisions of the budget reconciliation bill.
“This is a major victory for Alaska and for American energy independence,” said Congressman Begich. “I’m proud to see our work move forward and am grateful to Chairman Westerman and my colleagues on the committee for their partnership championing Alaska as the pathway to the kind of federal revenue generation that also generates economic prosperity and growth.”
The budget reconciliation proposal mandates a wide slate of energy development measures to get that revenue going, including:
- Six offshore lease sales in Cook Inlet in the next 10 years with 90/10 revenue split immediately
- Four lease sales in the Arctic National Wildlife Refuge, 90/10 split starting in 2035
- Biennial lease sales in the National Petroleum Reserve–Alaska, 90/10 split starting in 2035
These provisions are projected to generate $18.5 billion in federal revenue and savings, which would help reduce the nation’s budget deficit.
A deeper dive into what Begich got into the budget bill for Alaska resource development policy:
1. Coastal Plain Leasing (ANWR) — Section 80121
• 4 Major Lease Sales Mandated: Minimum of 400,000 acres per sale in ANWR’s Coastal Plain over the next 10 years.
• Permitting Certainty: Reinstates 2020 Record of Decision; deems NEPA/ESA satisfied to block future lawsuits.
• Revenue Boost: Alaska’s share of receipts increases to:
o 50% from FY25–34
o 90% from FY35 onward
2. National Petroleum Reserve–Alaska (NPR-A) — Section 80122
• Lease Sales Reinstated: At least 4 million acres must be offered every two years.
• Regulatory Rollback: Voids restrictive 2024 NPR-A rules, restoring 2020 development framework.
• Priority Permitting: Geophysical applications approved within 30 days.
3. Ambler Access Project — Section 80132
• Road Permits Restored: Reinstates original authorization for Ambler Road, overrides Biden SEIS.
• Legal Protection: Declares all federal permits valid and shields project from court challenges.
• Stable Costs: Locks in a $500,000 annual rental fee through FY34.
4. NEPA Reform — Sections 80151–80152
• Streamlined Environmental Reviews:
o Fast-track options via sponsor-paid fees
o Deadlines imposed for EAs and EISs, which are shielded from judicial review
• Alaska Impact: Accelerates reviews for mines, roads, pipelines, and energy infrastructure across the state.
5. Permitting Relief for Energy Development — Sections 80103–80104
• Permit-by-Rule System: Developers can certify compliance and proceed within 45 days for a $5,000 fee.
• Non-Federal Land Exemptions: Federal permits not required where:
o The feds own less than 50% of subsurface rights
o Surface is non-federal
• Alaska Impact: Particularly useful in Cook Inlet, Interior basins, and North Slope parcels with mixed ownership.
6. Mining Certainty & Lease Stability — Section 80131
• Shield Against Litigation: Prohibits lawsuits against federal mining authorizations unless filed by Alaska or a leaseholder.
• Lease Term Protection: Pauses lease clocks during legal or permitting delays.
• Alaska Impact: Increases investment certainty for critical and base metals projects statewide.
7. Timber Harvest Expansion — Sections 80313–80314
• 25% Timber Harvest Increase:
o Applies to both BLM and Forest Service lands
o Based on FY24 harvest levels
• Alaska Impact: Could significantly affect the Tongass and Interior BLM forest units.
8. Infrastructure Funding Opportunities
• $2.5 Billion for Surface Water Storage & Conveyance Projects (Sections 80203–80204)
• Eligible Uses: Dams, pipelines, hydro-related facilities.
• Alaska Impact: Water access for remote energy or mineral development could benefit.
House Majority Leader Steve Scalise of Louisiana praised Congressman Begich’s early and active leadership on the measure, noting his success in advancing provisions that prioritize Alaska’s economic interests and unleash its vast energy potential. In a press conference on Tuesday, Scalise named Begich and praised him for his hard work.
“From the moment he stepped foot in Washington, Rep. Nick Begich has been hard at work for the people of Alaska to ensure Alaska’s economy thrives with new opportunities. His legislative contributions to our one big, beautiful reconciliation bill through the Committee on Natural Resources generate significant revenue by resuming lease sales, encouraging domestic energy production and development by mandating lease sales in ANWR, and unleashing Alaska’s bountiful resources to the benefit of the state and the country,” said Majority Leader Scalise. “As a freshman member, Rep. Begich hit the ground running to fulfill our promises to the American people, and I am grateful to have his dedicated service, insightful contributions, and incredible work ethic here in the House. I’m also thankful to Chairman Westerman for his leadership and for working with Rep. Begich to include this important legislation.”
Begich has been working on this budget package since being sworn in 125 days ago.
Chairman Bruce Westerman of Arkansas of the House Natural Resources Committee also credited Begich’s efforts.
“Unlocking responsible energy production in Alaska significantly increases revenue and will shore up U.S. energy supply chains for generations to come,” Westerman said.
The reconciliation package now moves forward in the legislative process, with its Alaska provisions expected to have lasting impacts on the state’s economy, budget stability, and role in national energy strategy.
The package must pass the House floor and then, once in the Senate, will face a rigorous review.
Good Job Nick! Hopefully(?), Daddy’s Little Princess doesn’t eff this up!?!?
In a bankrupt country all I care about is this year and next year for revenue projection and more importantly cuts. Everything else is just talk.
Should make some people feel dumb that we could have had this capable congressman two years earlier if we didn’t have ranked choice voting.
well said Charlie!!
I am almost convinced Alaskan legislators will certainly find a better use for the additional revenue over the use of it the previous years when they were using it to study transgender rats in Zimbabwe.
Los Anchorage Assembly has a booming homeless project in dire need of additional funding.
Peltola as our next governor will be eager to send more to her “colorful buddies” in charge of the muni.
Awesome job Nick!
Nicholas is like Hercules for the State of Alaska. Why didn’t we elect him sooner. So proud of him. Our family is so damn proud.
It is absolutely unbelievable what all Nick Begich III has done for the state of Alaska in his first few days in office!!! Unbelievable to say the least!!! Unlike No Show Peltola.
1st Thank you Nick Alaska needs you for a 2nd term. 2nd Alaska legislators are struggling with the budget because they are crooks and are trying to find out where they can steal from it and us
Nick just keeping winning.
Mary who???
……..and Day 1 of the next Democrat POTUS administration will see it all “paused” by Executive Order.
Nope. This will be voted on by Congress, so that’s not something that can easily occur.
We shall see……….
Awesome work, Congressman Begich!!
This Alaskan (since ‘72) has never before been so pleased as I am now with the way things are going in DC. We may now congratulate ourselves for having elected an America-Alaska first congressional delegation (one noted exception) and a transformative president. Life is good in the Great Land, but one is always more cheerful when the federal government is not the enemy of our liberties, our security, and our economic prosperity.
Atta boy, Nick.. now can we get our full PFD??
Wow, why wait ten years, do the 90/10 split now.
not mentioned in this article is the reduction of royalties by 25%. So Alaska will be getting less revenue from the ANWR leases offered in the next 10 years. I guess if reducing the royalties brings interest it is a win. Time will tell.
I’m really liking Nick Begich!!!
Does this mean that the State treasury will get 50% of AIDEA’s lone bid?
No Frank. With state leases, Alaska pays them to take the oil. Probably be the same thing with natural gas.
It’s not a done deal and a lot can happen between now and 2035.
Just think of the states opportunities if everyone was motivated as Nick. The legislature in Juneau would be doing great things for our state and residents instead of trying to screw us. Our senior (D) senator was on board with making America and Alaska great again. Just think…
We need more elected officials like Nick. Lisa works against us with the Democrats and I forget who the other one is…we never hear from him. The Lefties are going to scream about climate change and how we’re all going to die in 5 years.
It never should have been anything else but 90/10. 2035? NO, now! @#$%#%^@$#^%$#@@
The Alaska legislature will screw this up.