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Paul Fuhs: Let’s get real about Alaska’s economy

GUEST CONTRIBUTOR
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Paul Fuhs: Let’s get real about Alaska’s economy

By PAUL FUHS

Like the turn of the seasons, we can regularly count on seeing opinion pieces expounding the wisdom of “moving beyond our extractive industries and making a transition to an alternative economy.”

Somehow, this alternative economy is never fully described, although presented in the most sincere and heartfelt, aspirational manner.  How real is this goal and what would we compare it to?

When I was Commissioner of Commerce and Economic Development in the early 1990s for Gov. Wally Hickel, I commissioned an input/output model of Alaska’s economy to determine the structure of what really drives our economy.

Such a study entails an analysis of how new money comes into the state annually as personal income.   This incoming money is what then drives the service economy.  Without this initial input, there would be no service economy, except for those that export services that bring the money back to Alaska such as our Alaska Native Corporation 8(a) operations.

A related study included how many times that incoming money circulates throughout the economy, known as the multiplier effect, and how quickly it leaves, known as leakage.

We have quite a bit of data on the number of jobs per industry that are often cited, but that employmment data does not represent a proportionate percent of annual income. For instance, an industry may have a lot of workers, but their pay level could be low, and they could be seasonal workers who do not live in Alaska and take their wages home with them when they leave.

By comparison, the average wage for a year round miner in Alaska is $116,000 and the multiplier effect for that industry is 3 times turnover. Other industries had a much lower multiplier as low as 1.1.

So, the most important figure to understand our economy, and to guide our economic strategy, is the incoming money which drives the whole rest of the economic system.

At that time in 1991, here was the breakdown:

  • 37% oil and gas, including development, taxes, and Permanent Fund revenues funded by oil
  • 13% fish, timber, mining, and tourism combined
  • 29% federal money, military and civilian
  • 20% income provided to retirees
  • 1% entrepôt (transportation services like Fed Ex, UPS, etc.)

As an important note, the contribution of retirees comes from the payments they receive from 401(k) funds, other retirement accounts and investments, social security payments, etc. Their substantial contribution to the economy, despite being larger than many other industries, is almost never recognized. That is wrong. We should honor our seniors and support them staying in Alaska.

In a subsequent input/output study in 2008, Scott Goldsmith of the University of Alaska Anchorage Institute of Social and Economic Research, found an almost exact income distribution outcome. 

Since then, other studies have shown that our economic structure hasn’t changed. To protect our economy, it makes sense to actively support and grow our basic industries instead of intentionally abandoning them as some people are suggesting, while also supporting new opportunities. 

So, what is the current state of our economy?

Oil and gas will continue to dominate, with several major productions coming online with billions of development investment.   The oil revenue based Permanent Fund will continue to produce distributed earnings.  And an increasingly likely and already permitted LNG export project would be a huge plus.  But what of our other industries?

Fisheries, while being a major employer, are stuggling due to world market conditions.  The industry, as a whole lost $1.8 billion last year. Fisheries can be supplemented by mariculture operations, but this is not enough to build an entire economy upon. Value added processing for higher value products, and more utilization of waste can provide some benefit, but it is recognized that this industry has a long way to go to respond to this crisis.

Mining is a bright spot for the economy, and with the support of the new administration, several major projects should be able to be brought online in the next few years. Markets are strong for Alaskan minerals, especially considering the mineral requirements of alternative energy vehicles and products.

Alaska’s timber industry, the stalwart industry of Southeast Alaska, has been decimated due to regulatory actions of consecutive presidential administrations such as the roadless rule. The new administration has indicated a more supportive direction to allow this renewable sector to provide what will be a substantial, but not overwhelming contribution to the economy.

Alaska’s tourism industry will continue to expand. More Alaskan ownership, local employment, and a focus on winter tourism will help expand the seasonal impact. We should welcome all visitors to Alaska, just as we would want to be welcomed when we go on vacation. And tourism must be presented as an industry that can coexist with the other industries, rather then being used as an excuse for why the other industries should be shut down.

One of the most immediate and effective things Alaska can do to support a resilient economy is the training of our own students and workers to take the jobs required by these industries. If Alaskans are not qualified, these industries have no other option than to hire outside workers.

The uncertainties around federal funding are concerning, but still not completely known. If federal funds to Alaska are cut to reduce the US deficit, we will have to rely even more on our basic industries.

In Alaska, we have addressed some of the leakage problems by expanded provision of services such as health care, but we have lost ground in retail due to internet purchases. On balance, we produce almost none of the goods we regularly consume, and we remain an export based economy. A manufacturing sector would be welcome, but high energy prices, wages, regulations, and logistics have always worked against this Asian country model in Alaska.

All told, Alaska’s Gross Domestic Product is $54 billion in 2023. So, what is going to drive the alternative economy? Those proposing some mythical transition need to provide the details for what can bring new money into the economy.  I will be glad to see it.  Even if new ideas can provide a limited contribution, they will be welcome, but they will not replace the solid basis that our resource production industries represent, which ultimately drives our service industries. 

To be realistic, we need to understand these economic dimensions, and they need to be a part of our education system, so that our children, and theirs, will be ready to embrace and be part of an economy that can provide them a living. Our seniors will be glad to have their grandchildren around.

Paul Fuhs is former Mayor of Unalaska, Former Commissioner of Commerce and Economic Development, and Chairman of the board of AIDEA, the Alaska Energy Authority and the State Bond Bank.

Paul Fuhs: Who will stand up for the people of the Arctic?

Thomas Pyle: Make no mistake, higher taxes on oil industry undermines Alaska’s energy future

GUEST CONTRIBUTOR
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18
Thomas Pyle: Make no mistake, higher taxes on oil industry undermines Alaska’s energy future

By THOMAS PYLE

The North Slope is once again booming with activity. Producers are investing billions and introducing new technologies to maximize production from legacy fields like Prudhoe Bay and develop major new oil fields such as Willow and Pikka. Despite four challenging years under the previous federal administration, this energy renaissance has been made possible by a steady tax regime in Alaska that has allowed producers to engage in long-term planning and make substantial long-term investments.

Unfortunately, where many see success and opportunity for new growth, some politicians in Juneau see only an ill-advised opportunity to increase taxes. A legislative proposal currently making its way through the Alaska Legislature, Senate Bill 112, takes direct aim at Alaska’s energy producers by rolling back competitive policies to maximize production. If passed, this proposal would jeopardize investments on the North Slope and take hundreds of millions of dollars away from the projects that promise to strengthen Alaska’s energy future and economy.

Another tax increase making its way through the Legislature, Senate Bill 92, targeting independently owned oil and gas companies, such as Hilcorp, despite them making substantial investments in Prudhoe Bay, Milne Point, and in the Cook Inlet while others were pulling back and leaving the state. Even after SB92’s primary sponsor withdrew their support, this bill continues to loom as a threat to Alaska’s business and investment climate.

While addressing the state’s budget challenges is necessary, targeting the oil and gas industry—the very sector driving economic growth—is counterproductive and shortsighted.

Alaska’s oil tax structure, which generates significant revenues in the form of property taxes, royalty payments, and production taxes, has been crafted to encourage production and growth. Industry experts have made it clear –– it is simply unrealistic to expect North Slope operators to absorb hundreds of millions in new taxes without impacting investment.

The timing couldn’t be worse. Alaska is competing globally for energy dollars in an environment where money flows to areas that offer the most favorable investment environment. Other states like Texas and North Dakota already offer more competitive tax structures on a product that is easier to get out of the ground. Adding new tax burdens would diminish Alaska’s appeal at a critical moment when federal policies under President Trump’s administration are finally becoming more favorable for domestic energy production.

With opportunities for new LNG exports to East Asian markets through renewed support for the $44 billion Alaska LNG pipeline project, this is precisely when Alaska should be strengthening its position as an energy leader, not undermining it. Alaska has an opportunity to be the driving engine behind President Trump’s energy dominance agenda.

Production on the North Slope is projected to increase from 466,000 barrels per day to 643,000 barrels over the next nine years—a direct result of the stable tax environment that has encouraged investment. Major developments like the Willow and Pikka fields represent billions in new investment that will generate substantial revenue without changing tax rates.

Alaskans understand this reality, which is why they have repeatedly rejected oil tax increases at the ballot box. In 2020, voters soundly defeated a ballot initiative to raise taxes on legacy oil fields by more than 15 percentage points— affirming Alaskans’ long standing desire for increased production and a robust economy.

Many in the Legislature understand this too. As a unified group of lawmakers recently put it in an op-ed, “Today, we face a critical decision: embrace new investment opportunities that promise economic growth, or push them away with misguided tax increases that threaten Alaska’s future.”

Despite this clarity by some lawmakers in Juneau, others continue to advance major tax proposals aimed squarely at Alaska’s most important industry. Instead of expanding the economic pie, these efforts focus on extracting more from the very companies that are creating jobs, investing in communities, and driving long-term economic growth.

With enormous optimism on the horizon, Alaska’s energy sector needs stability and certainty. Fiscal sustainability will come from growing the economy—not shrinking it with misguided tax hikes that undermine momentum and discourage investment.

Thomas Pyle is the President of the American Energy Alliance.

Thomas Pyle: Senate Bill 92 contradicts Alaska’s values and sets a dangerous precedent

Defense Secretary Hegseth returns combat fitness to uniform requirement, no easier standard for females

Suzanne Downing
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11
Defense Secretary Hegseth returns combat fitness to uniform requirement, no easier standard for females

Secretary of Defense Pete Hegseth has ended Biden-era practice of having lower physical fitness standards for women who are in combat units. The standards for combat have been returned to one standard, which all applicants must meet.

Pete Hegseth’s order says that standards must be “sex neutral.” Military leadership must implement these new standards by October, he said.

“The United States military’s strength is rooted in its unwavering commitment to high standards that foster discipline, unity, and purpose. It is these principles that have made our fighting force the most formidable in the world. As the nature of warfare evolves and the demands on our Service members grow more complex, it is imperative that we assess and refine the physical fitness standards that enable our readiness and lethality,” Hegeth wrote in his order.

“Sex-Neutral Standards. All entry-level and sustained physical fitness requirements within combat arms positions must be sex-neutral, based solely on the operational demands of the occupation and the readiness needed to confront any adversary. In establishing those standards, the Secretaries of the Military Departments may not establish standards that would result in any existing Service member being held to a lower standard,” his directive says. He added as a handwritten footnote that no existing standard would be lowered in the process.

During the past few years of the Biden Administration., women were failing the Army annual fitness tests, so the Army lowered the grading standard for them and for older service members. The Marines also had lowered their standards for women, and some argued that this puts all combat troops at risk, especially for those who are assigned to the same unit as women who cannot meet the physical demands of the job.

How this new order will be implemented throughout the services remains to be seen. Last week, the Army announced that sit-ups were no longer part of its testing regime.

Instead, the new Ranger requirements are as follows:

Wearing combat uniforms and boots, soldiers must complete the following in 14 minutes:

  • An 800-meter run.
  • 30 dead-stop push-ups.
  • A 100-meter sprint.
  • 16 lifts of 40-pound sandbags placed on a 68-inch-high platform.
  • 50-meter “farmers’ carry” of two 40-pound water cans.
  • A 25-meter high crawl
  • A 25-meter three-to-five second rush.
  • Another 800-meter run.

After that, the soldiers seeking to be Rangers must change into their running gear and run four miles in 32 minutes — 8-minute miles — followed by performing six chin-ups. An 8-minute mile for a woman puts her in an elite category. Fewer than 30% of female runners can keep that pace for four miles.

Sen. Lisa Murkowski offered no comment on the new military policy, although last week was quick to criticize Hegseth, whose confirmation she had quite vocally opposed.

The Hegseth order:

COMBAT-ARMS-STANDARDSDownload

All Fools’ Day: The jokes just write themselves

Suzanne Downing
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7
All Fools’ Day: The jokes just write themselves

Craig Compeau has an annual tradition of pranking his friend, Fairbanks lawyer Bill Satterberg, every April Fools’ Day, and today is no different. Different April 1, different joke, same old Compeau prankster.

In his annual spoof column in the Fairbanks Daily News-Miner, Compeau has penned a lengthy investigative story about how Satterberg is selling farmland near Fort Greeley and is a foreign agent for the communist Chinese.

This year, Must Read Alaska got a hat-tip from Compeau. The story says Must Read Alaska suggested Satterberg actually works for the Russians, not the communist Chinese. If it’s in Must Read Alaska, you can take it to the bank.

Satterberg refused to comment on whether he was Putin’s agent or whether the 74-year-old attorney’s birthday is April 1.

But wait! There’s more!

April Fools Day prank story by Craig Compeau of Fairbanks.

This year, Satterberg was not going to be outdone.

Satterberg knew his friend had sold his historic Compeau’s outdoor power sports business in Fairbanks, a business that has been a Fairbanks landmark owned by Craig Compeau’s family since 1945. Craig decided it’s time for him to retire. He’s out of state right now.

Satterberg also three years ago acquired a large sign from the old Showboat, a gentleman’s club, that had gone out of business in Fairbanks. He erected the “SHOWGIRLS” sign just under the Compeau’s name at the power sports shop, and then had his friends pose in front of it wearing a Trump mask and an Elon Musk mask. Compeau’s went from power sports to strip joint in one stealthy move.

Compeau discovered the sign Tuesday morning and knew exactly who the culprit was.

Craig Compeau discovered the prank first thing on Tuesday morning.

It’s April Fools’ Day and the pranks will be unending.

In Juneau, the Legislature is in session today. Committees will meet and bills will be discussed. Some legislation will definitely raise the question: Is this a joke?

Also in Juneau, insurance agent Scott Spickler reported some suspicious steam emitting from Mount Roberts, which sits above the city.

Apparently Juneau doesn’t want to be outdone by all the attention being given to Mount Spurr, 70 miles from Anchorage, which has had, shall we say, a very steamy recent past.

None of these pranks will ever outdo the one pulled off by Sitka’s Oliver “Porky” Picar, a World War II veteran who flew hundreds of old tires to the crater of Mount Edgecumbe in 1974, and then lit them on fire on the morning of April 1, 1974, staging a volcanic eruption that put the city on high alert. A prank like that today would land a guy in jail, but those were, indeed, the good old days.

To read about some of Compeau’s pranks on Satterberg in years prior, and other fine jokes, click on the links below. And be careful out there today, especially if you are in politics!

April fools ‘Vienna sausage’ joke hits Fairbanks funny bone
Endangered bird’s nest shows up in condemned Fairbanks building?
Quoth the Raven
Rent out the Governor’s Mansion like an Airbnb? What could go possibly wrong?

Lousy timing? Sen. Bjorkman bill wants headcount on head lice in schools

Suzanne Downing
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30
Lousy timing? Sen. Bjorkman bill wants headcount on head lice in schools

Editor’s Note: This is not an April Fools’ Day joke.

Not to nitpick a lawmaker’s judgment, but Sen. Jesse Bjorkman of Nikiski has introduced a bill that mandates school districts crack down on head lice. He’s trying to get more nurses back in the schools, so a head-lice mandate from on high might just do the trick.

The proposed requirements of Senate Bill 151 come at a time when Alaska schools are grappling with serious challenges in teaching students fundamental reading, writing, and arithmetic skills.

According to the Alaska System of Academic Readiness (AK STAR) assessment from spring 2022, 70% of students in grades 3 through 9 were not proficient in English Language Arts, including reading and writing.

But that’s not what’s bugging Bjorkman.

The Bjorkman Bug Bill says school districts must provide information to the state on lice prevention, perform head lice checks on 95% of students, and require students found with live lice to be sent home until cleared by a certified school nurse or healthcare provider. Districts that comply with the measures are eligible for partial reimbursement of their nursing costs, but that is subject to budget availability.

There’s no discussion in the bill about the correspondence students who are not on campus but who are counted as part of the student headcount by districts. Will nurses be dispatched to homes to ensure the kids learning at the kitchen table aren’t infested?

The Bug Bill adds to administrative costs, as do other bills from Democrats that force schools to focus on matters other than basics.

Sen. Elvi Gray-Jackson has a bill mandating schools teach CPR, a bill requiring schools to teach Pacific Islander history, and yet another bill requiring mental health education from kindergarten on up. Now, there’s lice to worry about.

Bjorkman, who was a teacher before being recruited by the NEA to run for office, has shown little interest in improving the academic performance of students, but has been on the leading edge of increasing pay for teachers. The union, rather than his district on the Kenai Peninsula, is his constituency.

Under SB 151, districts must submit detailed reports on lice policies, provide proof of inspections, and document the number of students affected. Additionally, reimbursement for hiring school nurses is only partially covered by the state and subject to available funding.

Rent out the Governor’s Mansion like an Airbnb? What could go possibly wrong?

Many rural districts, already struggling with budget shortfalls and teacher shortages, may find it difficult to comply with these mandates without cutting other essential services, since they don’t necessarily have school nurses on campus every day. Some schools in Alaska only have a handful of students and just one teacher. Pelican, for example, struggles to keep the 10 student headcount needed to retain state funding. Diomede, Tuluksak, and Kipnuk are others that barely can retain the headcount of 10. Bjorkman would have school nurses in those schools, which struggle just to keep teachers.

Head lice, while unsavory and annoying, do not carry disease and do not have any specific health impacts, other than creating intense itching that can result in festering sores. A chemical lotion with permethrin (found in products like Nix), is often used to get rid of them. In the latest data found, it appears that in 2017-2018, about 421 students in the Anchorage School District had been diagnosed with live lice by school nurses, or less than one out of every 100 students; most of the cases were in just one school where the head lice outnumbered the students.

Homeschooled and correspondence students likely have a lower rate of head lice, but there’s no known study of the difference between government school and homeschool students as it pertains to the parasite.

(No, we are not going to make a joke here about parasites. We’re leaving that to our commenters.)

Senate passes a pension plan for government workers, Bjorkman says it will be ‘cost neutral’

Visitors to Alaska’s Capitol must now go through TSA-style metal detectors or pat downs

Suzanne Downing
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19
Visitors to Alaska’s Capitol must now go through TSA-style metal detectors or pat downs

At the Alaska Capitol, it’s no longer an open-door policy. The Alaska Legislative Council, chaired by Rep. Sara Hannan (D-Juneau) voted 9-4 to enact restrictions on public access to the Capitol.

Effective immediately, all visitors will be required to pass through metal detectors, or be subjected to a pat-down.

“It’s a real shame to see this historical treasure bow to a liberal agenda that prioritizes control over community,” said Rep. Kevin McCabe of Big Lake, “Alaskans deserve a Capitol that remains truly theirs, not one gated off by unnecessary barriers.” 

The new policy, adopted on Seward’s Day, March 31, is indicative of the Democratic Party’s takeover of the Legislature.

The matter was considered but not approved at an earlier meeting of the Legislative Council late in 2024.

Rep. Cathy Tilton said she was disappointed.

“During my years as a member of the Legislative Council (of which I am no longer a member), I consistently opposed efforts to make visiting the capitol more cumbersome for Alaskans. Visiting Juneau is already difficult and costly enough. Unfortunately, on a 9-4 vote the Legislative Council approved a new screening policy for visitors. Visitors are defined as individuals who come through the main entrance and do not have electronic access to the building. The policy stipulates that visitors will be screened from 7:30 am to 5:30 pm (M-F) and must submit to screening through a magnetometer or a physical pat down. No doubt this will have a chilling effect, especially for large groups, wishing to talk with their legislators,” she said.

Reversal: No TSA-like screening of visitor at Alaska Capitol — for now

 

Victim card: Rep. Alyse Galvin wants everyone to observe Trans Day of Visibility

Suzanne Downing
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46
Victim card: Rep. Alyse Galvin wants everyone to observe Trans Day of Visibility

Rep. Alyse Galvin spent several minutes of legislative time on Monday reminding people that transgender people are victims of violent crimes and that she is the parent of a trans woman.

Several examples of where the opposite is actually true, where transgender people have victimized others. At the close of Transgender Visibility Day, we have these examples:

On Feb. 23, Lucy Grace Nelson (identified as female, though with an alias of “Justin Thomas Nelson”) was arrested after allegedly vandalizing a Tesla dealership multiple times in Loveland, Colo., including throwing Molotov cocktails and leaving graffiti, including the word “NAZI” sprayed on cars. She was found with additional incendiary devices. The US Department of Justice is on the case.

Former Korean church in Portland was burned down by an arsonist.

In 2023, Cameron David Storer was charged for burning down a 117-year-old historic church in Portland. Storer, then 25 years old, allegedly set fire to a building built in 1905 that once housed the Portland Korean Church. The fire caused extensive damage and the building had to be demolished.

Storer turned himself in to the Multnomah County Detention Center on Jan. 4, 2023, and said he used a Bic lighter to ignite the blaze. He requested to be referred to as “Nicolette Fait,” and official statements referred to him as “they/them” pronouns. He was found guilty but was also found to be insane.

Audrey Hale

Audrey Hale, of Nashville, a 28-year-old former student, killed six people in 2023, including three children, at The Covenant School. Hale is transgender, and uses he/him pronouns and identifies as male, though born female.

Anderson Lee Aldrich

Anderson Lee Aldrich of Colorado Springs killed five people at Club Q on Nov. 19, 2022. At first he identified as non-binary (using they/them pronouns) in court filings by defense attorneys, but that has come into question and is still not resolved whether he is transgender or if that is a defense tactic.

Maya (Alec) McKinney of Highlands Ranch, Colo. was convicted of killing a student and injuring eight at STEM School Highlands Ranch in 2019. She identified as a male, although born as a female.

LaSota

More recently, Fairbanks-raised Jack LaSota, who also goes by the name Ziz, is a transgender woman who is accused of being the leader of a transgender cult that is implicated in violent deaths across the country. He is in custody in Maryland.

Thus ends our roundup for Transgender Day of Visibility.

Alleged Alaska-born cult leader Jack LaSota, aka ‘Ziz,’ arrested in Maryland
Alaska’s Charles Manson? Mysterious transgender wanted in nationwide search, linked to ‘cult’ murders

Congressman Begich advocates getting veterans better access to medical care outside of VA system

Suzanne Downing
-
9
Congressman Begich advocates getting veterans better access to medical care outside of VA system

Congressman Nick Begich is a co-sponsor of H.R. 740, the Veterans ACCESS Act of 2025, joining House Veterans’ Affairs Committee Chairman Mike Bost to put veterans’ health care at the top of the priority list.

The legislation strengthens the Veterans Community Care Program to ensure veterans receive timely access to healthcare and to stop the Department of Veterans Affairs from restricting medical referrals to non-VA providers.

“Our heroes deserve the best possible care, without excessive wait times or bureaucratic barriers,” said Congressman Begich. “I’m proud to co-sponsor the Veterans ACCESS Act because Alaska’s veterans should never be forced to wait in line for care that is available in their own communities. This bill puts veterans first, strengthens private healthcare options and ensures that no veteran is forced to wait or travel extreme distances for care they should be able to receive closer to home.”

Alaska’s veterans, particularly those in rural areas, often face severe challenges in reaching VA facilities. The Veterans ACCESS Act of 2025 puts veterans back in control of their healthcare through these changes:

  • Codifying Access Standards – Ensures veterans can seek private healthcare if the VA cannot provide care within 20 days (primary/mental health) or 28 days (specialty care), or if travel exceeds 30-60 minutes.
  • Holding the VA Accountable – Prohibits the VA from misrepresenting appointment availability to deny veterans access to community care.
  • Strengthening Mental Health & Substance Abuse Treatment – Requires the VA to approve residential mental health and addiction treatment admissions within 48 hours, ensuring veterans in crisis receive immediate care.
  • Ensuring Transparency – Mandates that veterans receive written notice when community care is denied, including the reason for denial and clear appeal instructions.

Juneau man pleads guilty to producing child porn

Suzanne Downing
-
10
Juneau man pleads guilty to producing child porn

A Juneau man pleaded guilty today to producing child pornography. William Steadman, 35, a registered sex offender, met a pre-pubescent boy in Juneau and enticed him to engage in sexually explicit conduct. He faces a minimum sentence of 25 years.

Steadman documented the conduct and posted the content on the dark web. Steadman first came to the attention of law enforcement when he distributed his newly produced child sexual abuse material (CSAM) online.

According to the Department of Justice, Steadman attempted to obscure his identify from law enforcement by using the dark web, but tips from law enforcement, a cryptocurrency payment for additional CSAM material, and analysis of his online statements led to his identification and arrest.

A residential search resulted in the discovery of over 4,000 images and videos of CSAM on his devices.

Steadman pleaded guilty to one count of production of child pornography. He is scheduled to be sentenced on a later date and faces a mandatory‑minimum penalty of 25 years in prison and a maximum penalty of 50 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Michael J. Heyman for the District of Alaska and Glen Peterson, U.S. Special Agent in Charge of the U.S. Secret Service’s Seattle Field Office made the announcement.

The Secret Service’s Internet Crimes Against Children Task Force investigated the case.

Assistant U.S. Attorneys Mac Caille Petursson, Jack Schmidt, and William Reed for the District of Alaska and Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.

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