Deal resolves litigation over failed federal project, delivers major boost to modernization effort
Today Governor Dunleavy joined U.S. Attorney General Todd Blanche and Anchorage Mayor Suzanne LaFrance to announce that the federal government will pay $180 million dollars to settle a two-decade legal fight over a botched federal expansion project at the Don Young Port of Alaska, closing the books on of the longest-running lawsuits in state history and delivering a significant infusion of funding toward rebuilding the Port.
The settlement resolves claims against the U.S. Maritime Administration (MARAD) tied to the failed Port Intermodal Expansion Project, which left the Municipality of Anchorage to sue the federal government after the project’s design and construction proved defective.
The Don Young Port of Alaska, an enterprise department of the Municipality of Anchorage, serves roughly 90% of Alaska’s population. Food, fuel, building materials, and other goods enter Alaska at the port before being distributed across the Railbelt and into rural Alaska.
“This is a win-win-win. The Don Young Port of Alaska is a vital piece of infrastructure for our state and the nation. This settlement lets us turn the page and puts real resources toward rebuilding the Port,” Gov. Dunleavy said. “This is another example of what happens when President Trump’s administration, the State of Alaska, and local leaders pursue partnership over conflict. President Trump has made it clear that he knows Alaska is strategically important to the country. I’m grateful for everyone who helped to get this done.”
The $180 million will go to the Port of Alaska Modernization Program, a roughly $2.7 billion effort to replace the Port’s aging terminals with facilities built to withstand a major seismic event and accommodate modern shipping operations. The State budget Gov. Dunleavy signed for this year provides $15 million for the project, and another $10 million contingent on the price of oil averaging $80 or higher on December 31, 2026.
