The U.S. Department of Transportation’s Maritime Administration has granted $115,410,041 in federal funding for Alaska’s port infrastructure.
The grant funds are part of the Port Infrastructure Development Program (PIDP), which has $450 million in available grant money for Fiscal Year 2026. The Infrastructure Investment and Jobs Act (Pub. L. 117-58, November 15, 2021) (“IIJA”) provided PIDP with $2.25 billion to be given out over 5 years, starting in 2022 and ending this year. The FY 2026 Appropriations Act appropriated an additional $103,330,000 to PIDP FY26.
Grants are awarded to projects that “improve the safety, efficiency, or reliability of the movement of goods into, out of, around, or within a port.”
U.S. Representative for Alaska Nick Begich commented on the grant awards: “Major infrastructure investments are coming directly to Alaska. As a member of the House Transportation and Infrastructure Committee, I’ve fought to ensure Alaska’s unique needs are front and center. This funding strengthens economic growth and delivers important improvements for Alaska’s communities. These projects will modernize critical infrastructure, improve freight mobility, and ensure that Alaska is competitive and prepared as we prepare for economic growth in Alaska.”
Alaska will be using the funds to move seven key projects forward.
Most of the money ($38,621,386) will go to the Municipality of Skagway for the Port of Skagway Industrial Dock Redevelopment Project. Skagway, located at the northern terminus of Lynn Canal, is the most northerly, ice-free, deep-water coastal port of access to the Canadian Northwest and the Yukon Territory. Its strategic location makes it a significant player in regional transportation and commerce. The redevelopment project includes a multi-purpose dock, a new fuel header, demolition of an aging timber dock, upland improvements, and a non-fixed RORO ramp.
The State of Alaska Department of Transportation will receive the second largest amount ($34 million) for the Port MacKenzie Multimodal Port Expansion. Port MacKenzie offers 7,500 acres of uplands “dedicated solely to future commercial and industrial development,” plus 15 acres dockside and over 3 miles of shoreline. Funds will be used to complete the port’s railroad extension into the Interior. According to Alaska DOT Communications Director Shannon McCarthy, “One of the [grants] that we are really excited about is the Port MacKenzie multimodal port expansion project. This really helps complete the railroad down to Port MacKenzie and along Goose Bay Road.”
The third largest grant ($20,397,000) goes to the Alaska Railroad Corporation for the ARRC Port of Whittier Operational Efficiency Project. The money will be used to upgrade the railroad tunnel connecting the Port of Whittier to the railroad’s mainline track. The Whittier Terminal is Alaska’s only rail barge connection to the Lower 48 via Seattle and has long served as a critical multimodal gateway for freight and passenger movement in Southcentral Alaska.
$11,240,000 will go to the City of Homer for the Homer Port Coastal Freight Project. Smaller grants include $4,725,000 for the Anchorage’s Petroleum Terminal Replacement Planning Project; $4,074,520 for Whittier’s Planning and Design of the Delong Dock Replacement; and $2,351,175 for Chevak’s Cev’aq River Marine Barge Landing Facility.
Governor Dunleavy stated: “Alaska’s ports are the economic lifelines of our communities. These investments will modernize critical infrastructure, improve safety, and strengthen the supply chains Alaskans depend on every day. I want to thank Secretary Duffy and the Trump Administration for their commitment to advancing Alaska.”
“Investments like this are extremely impactful for communities like Homer and across Alaska,” said Homer Mayor Rachel Lord. “Modern, reliable port infrastructure is critical to our local and regional economy, from the movement of freight and commercial fishing to subsistence harvest access and tourism, ensuring families and businesses can continue to thrive. I appreciate Congressman Begich’s efforts to secure meaningful infrastructure investments for Alaska and for recognizing the importance of ports like Homer to our state’s future.”
Alaska DOT&PF Commissioner Ryan Anderson commented: “These projects address real, on-the-ground needs at ports across Alaska—improving freight movement, reliability, and day-to-day operations. By strengthening these connections, we’re helping facilitate economic growth and expanding opportunities for communities across the state.”
