Enacted Budget – Fiscal Year 2026
Alaska Governor Mike Dunleavy signed the state’s fiscal 2026 budget into law on June 12, while announcing a series of line-item vetoes. Total appropriations from all fund sources, including both operating and capital, are $14.73 billion, a 4.0 percent decrease from fiscal 2025. The budget provides for total operating expenditures (excluding capital) of $11.85 billion in fiscal 2026, a 3.4 percent decrease from fiscal 2025. The enacted budget includes $5.10 billion in unrestricted general funds spending (a 1.8 percent decrease), $912.9 million in designated general fund spending (a 5.1 percent decrease), $1.99 billion in other spending (a 2.1 percent increase), and $3.85 billion in federal spending (a 7.7 percent decrease). The budget also calls for capital appropriations of $2.88 billion, a 20.4 percent decrease from fiscal 2025. Additionally, the budget includes a Permanent Fund Dividend of $1,000 for each eligible Alaskan. Total state revenue is estimated at $15.68 billion in fiscal 2026 (a 6.1 percent decrease from fiscal 2025), while unrestricted revenue is estimated at $2.33 billion (a 9.4 percent decrease from fiscal 2025).
In signing the budget, the governor announced line-item vetoes reducing the operating budget by $122 million. The governor noted the vetoes represent the reality of Alaska’s current fiscal situation, in that revenue projections have declined since the spring and oil price outlooks continue to fluctuate, calling into question if expenditures can be supported. The governor added difficult decisions were made as a result of thorough evaluation to prudently invest in agency operations including prioritizing increased funding for education.