Alaska

Alaska

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FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)

Proposed Budget - Fiscal Year 2026

On December 12, 2024, Alaska Governor Mike Dunleavy released his proposed budget for fiscal 2026. Total appropriations from all fund sources for fiscal 2026 are $14.19 billion, a 7.6 percent decrease from fiscal 2025. Unrestricted general fund (UGF) appropriations are recommended at $4.93 billion, a 4.5 percent decrease from fiscal 2025. Additionally, the budget calls for a Permanent Fund dividend appropriation of $2.58 billion, an increase from $996.3 million in fiscal 2025. The proposed budget forecasts total revenues of $15.25 billion, a 6.3 percent decline from fiscal 2025, and unrestricted general fund revenue of $2.40 billion, a 6.7 percent decline from fiscal 2025. The state’s available reserve balance is estimated at $2.88 billion. 

Proposed Budget Highlights 

The governor’s proposed budget for fiscal 2026 reflects his continued priorities of reducing crime, improving educational outcomes, passing a balanced budget, and bringing outside investment into Alaska. In addition, the budget continues the governor’s efforts to make Alaska the best place to raise a family and includes a full statutory Permanent Fund Dividend, which is estimated to be $3,892 per eligible Alaskan. Highlights of the budget proposal include:

Public Safety

• Establishes a Talkeetna State Trooper Post to ensure timely law enforcement coverage
• Hires three new Alaska State Trooper Investigators to investigate child crimes
• Hires five additional Village Public Safety Officers
• Purchases a new aircraft for emergency rural response across Alaska
• Funds the Alaska Housing Finance Corporation (AHFC) Empowering Choice voucher program for victims of domestic violence
• Deposits general funds into the Disaster Relief Fund for timely responses to disasters

Education

• Total investments in K-12 education include fully funding K-12 Foundation Formula and pupil transportation at the statutory level
• Continued supports for career and technical education, teacher apprenticeships, and teacher recruitment and retention initiatives
• Supports electrician and plumber career pathway development for students
• Funding to help the University of Alaska Fairbanks achieve R1 status for research universities

Energy Development

• Advances the Alaska LNG Project Phase 1 to construction
• Completion of engineering, design, permitting, and geological studies for the Bradley Lake Hydropower Dixon Diversion Project
• Support for Alaska Energy Authority Renewable Energy Project Grants
• Funding for AHFC Energy Weatherization Programs (utilizing federal funds and funds from the AHFC Dividend)

Transportation

• Improvements along the Copper River Highway and development of the Wood River Canyon bridges and trails
• Funding for the Dalton Highway Heavy Maintenance milepost
• Support for Alaska West Coast Resiliency Projects for damage to infrastructure caused by Typhoon Merbok (combination of federal and state funds)
• Funding for Alaska Department of Transportation and Public Facilities right-of-way clearing of vacated homeless encampments

Resources

• Initiates a Gulf of Alaska Chinook salmon marine harvest study
• Continues the Alaska Marine Salmon Program to obtain critical marine research in the Bering Sea and Gulf of Alaska
• Develops forest infrastructure for increased timber sales in Southeast Alaska
• Funds for the Alaska Seafood Marketing Institute (ASMI) to invest in marketing Alaska seafood over three years

Affordability

• Support for the AHFC Rural Professional Housing Program and the AHFC Homeless Assistance Program
• Implements expanded eligibility of the Child Care Assistance Program implementing Senate Bill 189
• Funding for the Point Mackenzie Correctional Farm Produce Processing Plant
• Aid for the University of Alaska Fairbanks – Agriculture and Food Systems for Alaska’s Economic Sustainability

Proposed Budget Information
Fiscal Year 2026 Budget Proposal 

Fiscal Summary 

Department Summary  

10-Year Plan  

Budget at a Glance

Governor’s Press Release 

Revenue Forecast