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FY 2026 Governor's Proposed Budget

Governor Mike Dunleavy released his proposed Fiscal Year 2026 (July 1, 2025 – June 30, 2026) budget on December 12, 2024.

The Alaska Department of Revenue’s Fall Revenue Forecast projects the State of Alaska will receive $15.7 billion in total revenue for FY2026. The Governor’s proposed operating and capital budget totals $14.2 billion.

The Governor’s Proposed Budget continues his efforts to make Alaska the best place to raise a family.

“I have been consistent since day one that my focus is going to be on reducing crime, improving educational outcomes, passing a balanced budget, and bringing outside investment into Alaska. This budget reflects that.” – Governor Mike Dunleavy

The Governor’s Proposed Budget includes a full statutory Permanent Fund Dividend which is estimated to be $3,892 per eligible Alaskan.

Budget documents are available at omb.alaska.gov.

FY2026 Proposed Budget

The graphic below depicts the Governor’s Proposed Operating Budget based on the amount of spending utilizing all fund sources. Select a department from the drop-down menu in the upper left corner to see a more detailed breakdown. 

Key items in the Governor’s FY2026 Proposed Budget Include:

Public Safety

  • $2.4 million to establish a Talkeetna State Trooper Post to ensure timely law enforcement coverage of Willow, Talkeetna and Trapper Creek along the Northern Parks Highway Corridor
  • $1.3 million to hire three new Alaska State Trooper Investigators to investigate Child Crimes Investigations in Kotzebue, Nome, and the Northwest Arctic Region
  • $1.2 million to hire five additional Village Public Safety Officers, bringing the total to 90 VPSO positions. In 2020, there were only 40 VPSOs serving rural Alaska villages.
  • $6.5 million to purchase Pilatus PC-12 aircraft for emergency rural response across Alaska
  • $1.5 million AHFC Empowering Choice voucher program for victims of domestic violence
  • Deposit general funds into the Disaster Relief Fund for timely response to disasters ($15 million in FY2025* and $13 million in FY2026)

Education

  • Total investment in K-12 Education $1.5 billion
  • $1.1 billion in K-12 Foundation Formula (encompasses “BSA”) funding and $67.8 million for Pupil Transportation
  • $2.75 million in continued support for Career and Technical Education, Teacher Apprenticeships, and Teacher Recruitment and Retention Initiatives
  • $300,000 for Electrician and Plumber career pathway development for students
  • $5 million for the University of Alaska Fairbanks toward achieving R1 Status

Energy Development

  • $50 million for advancing the AK LNG Project Phase 1 to construction*
  • $6.5 million for the completion of engineering, design, permitting, and geological studies for the Bradley Lake Hydropower Dixon Diversion Project
  • $6.3 million for Alaska Energy Authority Renewable Energy Project Grants
  • $5 million for Alaska Housing Finance Corporation Energy Weatherization Programs (Utilizing federal funds and funds from the AHFC Dividend)

Transportation

  • $4.2 million for improvements along the Copper River Highway and development of the Wood River Canyon Bridges and Trails
  • $2.5 million for Dalton Highway Heavy Maintenance milepost 76-89
  • $18.1 million for Alaska West Coast Resiliency Projects for damage to infrastructure caused by Typhoon Merbok ($14.5 million federal, $3.6 million State funds)
  • $500,000 for Alaska DOT&PF Right-of-Way clearing of vacated homeless encampments

Resources

  • $5.6 million initiating a Gulf of Alaska Chinook salmon marine harvest study
  • $800,000 to continue the Alaska Marine Salmon Program to obtain critical marine research in the Bering Sea and Gulf of Alaska
  • $858,000 to develop forest infrastructure for increased timber sales in Southeast Alaska
  • $10 million for the Alaska Seafood Marketing Institute to invest over three years to market Alaska’s seafood*

Affordability

  • $11.5 million for the Alaska Housing Finance Corporation Rural Professional Housing Program ($10.5 million AHFC Dividend, $500,000 other, $500,000 federal)
  • $10.1 million for the Alaska Housing Finance Corporation Homeless Assistance Program ($9.2 million AHFC Dividend, $950,000 other)
  • $6 million to implement expanded eligibility of the Child Care Assistance Program implementing SB 189
  • $3 million for the Point Mackenzie Correctional Farm Produce Processing Plant
  • $3 million for the University of Alaska Fairbanks – Agriculture and Food Systems for Alaska’s Economic Sustainability

*Introduced as a FY2025 supplemental

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