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The Trump administration is continuing to make sweeping cuts nationwide to federal jobs, programs, and funding. Dozens of Alaskans have been fired - many working important jobs in our tourism industry with the Parks Service, Forest Service, and others. The layoffs from these agencies may impact the delivery of services in Alaska during tourist season in busy tourism hubs this summer.
In addition to the layoffs impacting Alaskans, the Federal cuts will reduce grants and programs that Alaskans depend on.
President Trump froze grants for energy projects under the January 20th Unleashing American Energy Order, which paused spending from the Bipartisan Infrastructure Act and the Inflation Reduction Act. A $500 million grant for a subsea transmission line is also on pause. Construction of the transmission line, which relies on matching state funds, would run between Kenai and the west side of Cook Inlet and would add additional resilience in Alaska's Railbelt. Other energy projects on hold include millions of dollars for the Alaska Village Electric Cooperative, hydropower projects in Old Harbor and Angoon, and community solar and battery storage projects in the Northwest Arctic Borough, and more.
Medicaid is also on the table for cuts. The U.S. House approved a resolution calling for up to $2 trillion in cuts, which could translate to as much as $1 billion in federal funding losses for Medicaid in Alaska. Representative Nick Begich voted to approve that resolution. A third of all Alaskans use Medicaid. Slashing federal funding for Medicaid programs will force the state to choose between letting thousands of Alaskans lose their healthcare or covering the loss with state funds. The potential need for the State to fund these programs is especially concerning in the face of our budget challenges.
Last week, the Legislature's presiding officers, Senate President Gary Stevens and Speaker of the House Bryce Edgmon sent a letter to Alaska's Congressional Delegation voicing concerns about the recent federal cuts and layoffs that have been impacting Alaska.
The letter warns that federal cuts “endanger the economic prosperity and social well-being of Alaskans.”
In a separate statement, Senate President Stevens wrote that ”Alaska already faces significant budget challenges, and these reckless federal actions put our state’s economy at risk. We can only do so much from a state’s perspective."
To read the full letter, click here.
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