Associated General Contractors logo
That's a Wrap
34th Session of the Alaska State Legislature gavels out—for now
By Legislative Affairs Committee Co-Chairs Meg Nordale and Paul Swalling
Associated General Contractors logo
That's a Wrap
34th Session of the Alaska State Legislature gavels out—for now
By Legislative Affairs Committee Co-Chairs Meg Nordale and Paul Swalling
T

he second session of the 34th Alaska State Legislature demonstrated the power of advocacy and the value of membership in the Associated General Contractors (AGC) of Alaska.

When the executive branch and legislature failed to reach consensus in 2025 on appropriating state match dollars, millions in FY26 federal funding for transportation projects were left at risk. About 90 percent of Alaska’s transportation funding comes from the federal government. But to use that money, the state must add in the remaining 10 percent in match funding. When the effort to appropriate state match funding was vetoed, AGC launched the Meet the Match advocacy campaign to raise awareness about the critical role those dollars play in sustaining Alaska’s construction economy.

Beginning in fall 2025, the Meet the Match campaign engaged AGC members, constituents, affiliated industry organizations, and policy leaders in conversations about the significance of these federal highway dollars and the critical timing of a state commitment, given Alaska’s seasonal construction calendar. The campaign—while challenging and long in duration—was successful. Contractors doing business in Alaska are thankful for the support received from both the legislature and the governor this session to approve FY26 state matching dollars, ensuring eligibility for available federal transportation funds.

World events and consideration of significant resource development projects dominated the work of this legislative session. Rising oil prices due to the Iran conflict allowed for increased capital project funding across the state. At press time, the Legislature has been called into a special session by the governor to continue consideration of legislation in support of an in-state natural gas pipeline. AGC will continue to monitor this debate and advocate for Alaskan contractors; the impacts will be significant should such a major project move forward.

The final FY27 operating budget passed with a total price tag of $6.7 billion. It includes a $1,000 per person Permanent Fund Dividend, alongside an additional $200 per person allocated for energy relief sourced from a projected surplus in FY26. The state’s outlay for these payments will amount to $800 million, marking a substantial decrease from the $2.4 billion expenditure originally proposed by the governor.

Five people pose for a group photo inside a formal, wood-paneled room with flags and a golden seal in the background. Two individuals hold red folders with an "A" logo.
Six smiling people pose for a group portrait indoors. Several individuals hold bright red folders featuring a circular "A" logo, and some wear yellow event pins.
Five smiling people pose for a group photo indoors. Four of them hold bright red folders featuring a circular AGC logo.
Four smiling people pose in a carpeted hallway. Two standing men hold red folders with a circular logo, while two women sit in the foreground, one holding a tablet.
The Associated General Contractors (AGC) of Alaska Legislative Fly-In, held February 24 and 25, offered an opportunity for more than twenty AGC members to talk with Alaska Legislators and state officials to advocate for AGC’s legislative priorities, including its push for legislators to Meet the Match. AGC leaders say the group had productive dialogues with legislators and policymakers, advocating for a robust industry that moves Alaska forward and builds the economy.
Six smiling people pose for a group photo in front of a window with blinds. Several individuals wear yellow event pins, and two men hold red folders with a circular AGC logo.
Five people sit in a wood-paneled lounge area featuring a blue sofa and red armchairs around a coffee table. A woman on the right holds a red folder with a circular "A" logo.
A group of people sit around a large oval conference table during a meeting, reviewing documents and papers. Screens are mounted on the walls, and drinks and wrapped food are spread across the table.
In the FY27 capital budget, an allocation of $248 million in state funds is expected to leverage almost $2 billion in federal funds to enhance Alaska’s infrastructure. Key highlights of the FY27 capital budget, as transmitted to the governor for signature, include:

  • $57 million designated for major maintenance projects in K-12 schools, which will fully fund the top fifteen priority schools on the state’s deferred maintenance list, along with necessary repairs to tank farms at three rural schools.
  • $17 million allocated for the replacement of the Stebbins school, which was destroyed in a fire in 2024.
  • $14 million earmarked for repairs at Mt. Edgecumbe High School.
  • $17 million directed towards addressing deferred maintenance at the University of Alaska.
  • Continued funding for workforce development programs aimed at cultivating Alaska’s pipeline and construction workforce to support future economic growth.

AGC remains vigilant on legislation that could impact our industry. This includes a wide range of issues, from paid sick and parental leave programs to ongoing support for workforce development and remote equipment maintenance flexibility. AGC has and will continue to provide both oral and written testimonies on these key issues and legislative proposals that significantly affect member businesses.

The Legislative Affairs Committee (LAC) has been proactive, holding weekly meetings throughout the legislative session. During these meetings, members engaged in thorough discussions to evaluate the potential impacts of legislation under consideration related to the construction industry. The committee’s mission centers on developing AGC’s legislative priorities while assessing levels of support, opposition, or neutrality toward specific bills—a focus that is especially critical during the session.

In February, the LAC organized a dynamic fly-in event to Juneau, where twenty-two AGC members passionately advocated for crucial “Meet the Match” funding. This year’s fly-in event mirrored the success of last year’s initiative, allowing lawmakers to hear compelling messages that highlighted the vital role the construction industry plays in various aspects of Alaska’s economy.

Our messaging directly helped secure the critical highway match dollars in the supplemental budget that passed in March. However, this same level of effort is needed year after year to ensure a healthy, vibrant construction economy that supports the quality of life in our great state. AGC remains a champion for Alaska’s construction industry, advancing public policy which will sustain such opportunities for generations.

Photos provided by Associated General Contractors of Alaska.
Back to Issue