April 4, 2022 (Juneau) – The Dunleavy administration submitted legislation (SB 241 HB 414) to the Alaska Legislature this morning which appropriates the initial funding anticipated to be received by the State of Alaska from the federal Infrastructure Investment and Jobs Act (IIJA). The legislation appropriates capital and operating funds to state agencies and to some non-state organizations that will partner with the states, local governments and Alaska Native entities to implement IIJA funding and pursue future federal funding opportunities.
“While the federal infrastructure bill doesn’t provide the state with pots of unrestricted infrastructure funds that Alaska can spend as we see fit, it does contain substantial funding to improve our roads, airports and water infrastructure, and new investments in bringing broadband to the state. In addition, the bill provides competitive opportunities for Alaska to modernize our electric grid, pursue clean energy technology, to develop our substantial critical minerals and rare earth elements,” said Governor Dunleavy.
The Dunleavy administration bill is being introduced following the U.S. Congress passage of the IIJA in November followed by passage of the federal FY22 omnibus appropriation bill last month. It’s expected that 60 percent of the 5-year federal authorization will be allocated by formula with the remaining 40 percent expected to be awarded through competitive grants administered by federal agencies.
The bill distributes the funds into five categories.
Here are some highlights in the legislation:
- $560.2 million in additional federal funds for surface transportation, rural water and wastewater programs, veterans services and cybersecurity grants.
- $37.4 million for federal weatherization programs and the Alaska Low Income Home Energy Assistance Program
- $28 million for investments in modernizing the electric grid, developing clean hydrogen and a research demonstration facility for Alaska’s substantial reserves of critical and rare earth minerals
- $5 million to stand up the State of Alaska Infrastructure Office to coordinate and consolidate efforts with all recipients of IIJA funds
- $4 million to construct housing for teachers and public safety personnel in rural communities not connected to the road system
- $2.5 million to the Alaska Federation of Natives to continue the navigator program, a joint effort with the state on securing all funding available in the IIJA legislation
The Dunleavy administration is ready to engage with lawmakers, local governments and non-state organizations on maximizing the value of the IIJA bill for all Alaskans. Initial legislative hearings on HB 414 and Senate Bill 241 are expected to take place this week.
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