Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

January 15, 2026

 

 

Dear friends and neighbors,

 

As the New Year begins, we hope for calmer, more rational times.

But the challenges keep coming.

 

Federal Cuts in Healthcare and Behavioral Health.

Here in Alaska, our Behavioral Health Division has drastically reduced the grants to clinical services.

The Dept of Health has been assessing reimbursement rates for Medicaid, which haven't been reviewed in several years. It appears that a consultant report Is recommending reimbursement for services at rates less than clinicians' wages. This will probably result in a lot of services being cut, and clinicians leaving our state.

 

Now, the Federal government takes it another step.

Trump administration cuts up to $1.9 billion from mental health and addiction treatment programs. Stat Health

 

The Trump administration sent shockwaves through the U.S. mental health and drug addiction system late Tuesday, sending hundreds of termination letters, effective immediately, for federal grants supporting health services.

 

This is a very big deal for Alaska. In HB1, passed by Congress a few months ago, we lost a huge amount of Medicaid funding. Already we will struggle to make this up with State funds.

 

This new blow from the Federal government adds yet more of a gaping hole in Alaska's healthcare access and cost.

 

A look at the gaping budget hole

The Legislature passed the FY26 budget for this year with a surplus of $130 Million.

 

Deficit created of $50 Million by vetoes of fire suppression, $55 M more for disasters (not counting MatSu winds, Juneau snow/rain records).

$70 M was vetoed from Dept of Transportation to match $700 M Federal.

I'm told that DOT used $70 M from another fund to begin the Cascade Point harbor that the advisory board spoke against.

The Higher Education Fund was used ($130 M) to fund some things and needs those funds returned to it.

 

Summary: the $130 M surplus is now $350 M Deficit.

Add lost Medicaid funding from Feds, about $36 M.

Federal fine for failing the Education funding disparity test = $78 M

 

At this point the FY26 deficit is $450 M, but will be more when MatSu wind damage and Juneau snow/rain records are added in.

 

Revenue to pay for this:

Largest amount is POMV from Permanent Fund: $4 Billion is about 65%.

Oil taxes may equal about $400 M.

Santos' Pikka Oil field could bring in a very small amount. They will have deductions for capital expenses for several year that will keep their taxes low. Same is true for ConocoPhillips' Willow Oil field.

Corporate Tax on internet sales companies (SB 113) was vetoed by Governor, estimated to bring in about $60 M (paid by out-of-state companies, not Alaskans)

 

The Governor has told us that he is open to talking about new revenue this year. But we also have to have spending limits. (Our spending limit is the POMV limit, the CBR savings account depletion, and a lot on lost Federal money.)

 

It will be a challenging year.

 

 

Items in this Newsletter:

·     Alaska Municipal League Session Priorities

·     News from the Japanese Consul

·     Current Topics, Stuff I Found Interesting, Arctic Issues, Economy, Education, Politics, Healthcare

·     Holiday Tree Recycling

·     Free Legal Help - MLK Day

·     Alaska History in January

·     Resource Values, Permanent Fund

 

 

 

 

Alaska Municipal League Session Priorities

 

I really appreciate these priorities, identified by our local governments during their annual meeting in December. I support every one of these priorities.

 

My question: How do we pay for these great, community/business/economy building ideas? The local government officials know this question also.

 

I look forward to working together toward achieving the fiscal balance needed to accomplish these priorities.

 

1. Capital Budget - Local governments strongly value the state capital budget as a tool for addressing critical infrastructure needs. This is especially important as communities work to meet required local match, particularly for smaller and financially constrained communities. The capital budget is an important tool to leverage state investment while recognizing local capacity constraints.

 

2. Community Assistance Recapitalization - Community Assistance remains one of the most effective and predictable forms of state support for local governments, helping communities provide essential services and maintain basic operations. Recapitalizing the Community Assistance program restores stability and helps municipalities manage rising costs without shifting the burden to taxpayers.

 

3. School Construction and Major Maintenance - School facilities are critical public assets and central to community vitality. Municipalities continue to face substantial deferred maintenance and construction needs that exceed local capacity. Robust investment in school construction and major maintenance through the capital budget is essential to protect prior state investments, ensure student safety, and support local economies.

 

4. Continue to work on public education funding - Municipalities and school districts alike are struggling to keep pace with inflation and rising operating costs. Addressing costs or increasing resources is necessary to maintain educational quality, avoid program cuts, and reduce pressure on local governments to backfill education funding gaps.

 

(Tie) Full School Bond Debt Reimbursement - Honoring the state’s commitment to full school bond debt reimbursement is critical for municipal financial stability. Predictable reimbursement supports responsible local borrowing, protects local credit, and ensures that communities can plan and invest in school facilities without unexpected fiscal risk.

 

(Tie) Protect Local Property Taxes - Local property taxes are a cornerstone of municipal self-governance and fiscal responsibility. Our members strongly urge the Legislature to protect local authority over property taxation and avoid policies that would undermine local revenue without providing a reliable replacement. *Note that the majority of local governments don’t have a property tax, which makes its importance likely greater for those to whom it applies.

 

 

A Message from the Japanese Consul of Alaska

 

 

On January 9th, 2025, Head Consul Hamada hosted a visit from Alaska State Senator Cathy Giessel at the Consular Office in Anchorage.

 

Senator Giessel spoke about her priorities for the next legislative session, as well as her role leading Resources Committee and thoughts on the current state of Alaska LNG and mineral ventures. Discussion was also centered on nuclear and renewable energies, arctic security, and task of balancing the state’s budget during the upcoming legislative session.

 

The Consular Office of Japan looks forward to future cooperation with Senator Giessel.

 

 

Current Topics

 

Despite soaring demand, Enstar says natural gas supply is sufficient. Alaska public Media

Enstar pulled almost three times as much natural gas from storage as initially anticipated in December, when unseasonably cold temperatures moved into the region, but said it's confident the supply is sufficient to serve its more than 150,000 customers.

 

Alaska offers free rocks and dirt, helping big state-backed construction projects. Alaska Beacon

The state of Alaska is preparing to give away millions of dollars worth of gravel to public corporations, a move that would amount to millions of dollars in assistance to some of the state’s biggest construction projects. According to a Q&A posted by the Alaska Department of Natural Resources, the beneficiaries could include the proposed Ambler Access Project and the proposed trans-Alaska natural gas pipeline. If the state of Alaska provides that gravel for free, it would be a revenue loss of between $45 million and $66 million for construction alone. 

 

Hundreds warned to evacuate in downtown Juneau amid high avalanche risk. Alaska Beacon

“If you live in a slide path it’s time to grab your go bag and get out of your house and make other arrangements until the hazard has cleared,” he said at a news conference on Zoom that began late Friday morning. O’Shaughnessy pointed residents to an interactive map of avalanche zones in downtown Juneau. 

 

 

Things That I Found Interesting

Why Firefighters Have Greater Cancer Risk — and What Departments Are Doing About It. Governing

Plastic has crept into everything from furniture to building materials, and when it burns, the chemicals are dangerous to breathe. Sooty helmets were once a badge of honor. But research shows firefighters absorb carcinogenic particles through their skin from soot and dirty gear. Carefully cleaning suits and quickly showering are important health steps. Manufacturers are starting to remove PFAS from firefighters’ protective suits, though replacing the older-style gear comes with a big price tag for fire departments.

 

Wildlife encounter: A lynx with hungry kittens on the Anchorage Hillside. ADN

 

 

Arctic

Russia and Chine co-operating more often and more in the Arctic, says NORAD commander. CBC News

There's been a subtle but significant shift in what NORAD has been seeing over the last year when it comes to mostly Russian — but also Chinese — activity in the Arctic, says the top commander of the North American Aerospace Defence Command (NORAD). U.S. Gen. Gregory Guillot tells CBC News that air and sea incursions into the zones just outside North America have not only become more frequent, but also more co-ordinated. "Sometimes we'll have — instead of a ship — there might be four or five ships at the same time operating in various parts of the Arctic Ocean down into the Bering area," Guillot said. And then a few hours later, he said, there will be an air incursion in a different part of the region.

 

Greenland official calls it ‘unfathomable’ that the US is considering taking over the island - Anchorage Daily News

In perhaps their sharpest pushback to date, Denmark and Greenland’s prime ministers underscored that the territory is part of Denmark, and thus covered by the umbrella of the NATO military alliance. A U.S. attempt to take over or force the secession of the massive island would tear apart the transatlantic alliance, which has been a linchpin of post-World War II security.

 

Murkowski helps introduce bill to block U.S. takeover of Greenland. Alaska News Source

Sen. Lisa Murkowski, R-Alaska, is moving to block any U.S. effort to seize or force control of Greenland, warning that such actions would shatter NATO unity, alienate key allies and hand strategic victories to Russia and China.

 

 

Economy

New sign of labor market angst. Axios

Americans' outlook on employment darkened last month: Job-finding expectations fell to the lowest level on record. Survey participants' average response on the odds that they could land a new gig within three months in the event they are laid off fell 4 percentage points, to 43%, in December, according to the New York Fed's survey of consumer expectations — the lowest in its 13-year history. The drop was driven by survey respondents whose annual incomes were less than $100,000, with pessimism most pronounced for workers over 60 and those with a high school degree or less.

 

Trump's housing affordability bid: How it could impact investors. Axios

Right now, there's a lack of affordable housing. Increasing MBS purchases in an effort to lower rates could shave 10 to 15 basis points off a mortgage, according to strategists, but in return, there could be a swell of demand from buyers who are eager for lower rates. That demand swell could in turn lead to higher prices. The U.K. offers a cautionary tale: Efforts to make mortgages cheaper for first-time buyers there fueled demand, which inflated prices, leaving affordability worse off.

 

Charted: Independent muscle. Axios

A record 45% of American adults identified as independents last year — an increase driven by millennials and Gen Z.

 

 

Education

Opinion: The education numbers the governor does not talk about. ADN

Here are six results his education policies overlook.

 

 

Energy

Nuke industry pushes overhaul of Reagan-era law. Axios

Nuclear industry officials implored Congress yesterday to overhaul the 44-year-old law governing radioactive waste disposal if it's serious about helping the burgeoning industry.

(My comment: France has been recycling and reusing spent nuclear fuel for a long time. No issues.)

 

In 2025, U.S. natural gas spot prices increased from 2024. EIA

In the Northwest, the annual average natural gas spot price at Northwest Sumas fell by $0.24/MMBtu in 2025 as ample natural gas supply from Canada coincided with less demand for natural gas-fired electricity in the Pacific Northwest region. Natural gas production in Western Canada set record highs last year, led by the Montney, a shale basin in British Columbia and Alberta.

 

Connecting Donlin Gold to Alaska LNG. Mining News North

By leveraging the infrastructure, expertise, and labor force that Glenfarne would assemble to build the Alaska LNG pipeline, the collaboration could lower costs and accelerate the timeline for constructing what would effectively be a spur line to the Donlin project. Glenfarne's involvement could also facilitate future delivery of energy to communities and projects across Southwest Alaska.

 

Alaska antimony supply chain growing pains. Mining News North

While pinning America's antimony supply hopes on the high-grade occurrences across the 49th state is not without merit, Alaska's emerging antimony mining and refining sector enters 2026 facing the challenges that accompany rapid growth in a regulatory and social licensing environment not built for speed.

 

Hilcorp chairman: We're going to Venezuela. Northern Journal

 

Hilcorp owner pledging unknown amount of money for Venezuela. Reporting from Alaska

Hildebrand, a billionaire who donated more than $4 million to Trump and Trump groups over a couple of years, was there to shower compliments on Trump. He said that Trump, who recently appointed Hildebrand’s wife as ambassador to Costa Rica, a job she began this week, is a tremendous leader. “And finally Hilcorp is fully committed and ready to go to rebuilding the infrastructure in Venezuela,” Hildebrand said.

 

Short-term energy outlook. EIA

(My comment: Lower price point for oil means great things for consumers - lower cost for heating oil (rural Alaska) and gasoline at the pump. It means lower revenue for State treasury. Fortunately the State’s reliance on oil revenue has decreased over the last 5 years to less than 30% now. Our revenue comes from the Permanent Fund, created by Alaskan voters in 1976, and saving oil money, not spending it for themselves. Most of those Alaskans have died or are pretty old now. They deserve our thanks.)

 

Southcentral Alaska utilities move to expand gas storage, an insurance policy for severe cold and a bank for imports. ADN

The shift to more gas storage adds to the evolving role of the Cook Inlet basin, where once-mighty gas production has waned over the decades, requiring utilities to increasingly look at storage to help meet demand. 

 

 

Politics

Alaska judges will soon be bound by tighter ethics rules under a rewrite of court standards. Alaska Beacon

The changes, which stretch for dozens of dense, jargon-filled pages, prescribe things like what a judge can ethically do during an election, how to respond if someone’s life might be endangered by secrecy and even what happens if an attorney is drunk in the courtroom.

 

In US Supreme Court case over which absentee ballots count, Alaska doesn't pick a side. ADN

The Alaska brief was filed by Jenna Lorence, the first Alaska solicitor general after Attorney General Stephen Cox created the role and appointed the Indiana attorney in October to fill it. The 14-page brief says it does not support either party in the case. The state’s impartiality drew criticism from an elections attorney, Scott Kendall, one of the main architects of the state’s ranked choice voting and open primary system. “If you’re going to file something, take a position in favor of Alaska’s laws because they’re there for a very good reason,” Kendall said. 

(My comment: An Indiana attorney is representing Alaska’s position. Appointed by a new AG who just arrived. Its hard to identify which of those two facts are the most disturbing.)

 

1 big thing: Trump's limitless view of power. Axios

The Donroe Doctrine doesn't necessarily stop at adversaries, as the unfolding crisis over Greenland shows. Dangling the threat of military force, Trump and his team are openly discussing what a "purchase" or transfer of control would look like — an idea that has deeply unsettled Denmark and NATO.

 

1 big thing: The Powell pushback is working. Axios

There are plenty of complaints to be made about the Fed's policy decisions and the secretive way it makes them. But at the end of the day, there's a deep cross-partisan consensus that you want skilled technocrats in charge of the nation's money supply rather than overt politicization.

(My comment: I would love to see politicization of our own Permanent Fund Board go away by requiring skilled financial experts in those board seats.)

 

Anchorage mayor asks Assembly to set aside sales tax proposal in favor of plan to help fund schools. ADN

Anchorage Mayor Suzanne LaFrance on Monday announced a proposal to place a one-time, $12 million levy for the Anchorage School District on the April municipal ballot. In doing so, she asked the Assembly to set aside other revenue measures indefinitely, including her own 3% sales tax proposal, “for the time being.”

 

US Supreme Court rejects state petition to take up fight over Alaska subsistence. ADN

The U.S. Supreme Court has declined to review a lower court’s decision in a case involving subsistence fishing in Alaska, a decision that keeps in place a unique federal protection viewed as critical by Alaska Natives. 

 

Opinion: Alaska voters know this system — and they’ve backed it twiceADN

Alaskans in 2020 approved a citizens initiative to adopt what is called ranked choice voting and used it for the first time in 2022. It eliminated party primary elections and moved the state to a one-size-fits-all primary where the top four vote-getters advance to the general election, regardless of party affiliation. Opposition to the switch came mostly from conservative Republicans who did not like losing control over partisan primaries and did not like seeing moderates win elections by appealing to the middle.

 

Time for real leadership to outweigh reelection Alaska Beacon

We need leaders this year among the 60 legislators. They don’t have to be fearless leaders, just fearful of the damage caused by doing nothing. And if the governor vetoes their work, he’ll be gone in 11 months. It will be up to Alaskans to reelect legislators who did their job so that they can do it better next year with a new governor.

 

 

 

Health Care

Investigation of an Increase in Acute Rheumatic Fever and Rheumatic Heart Disease — Alaska, 2025

a concerning rise in acute rheumatic fever (ARF) and rheumatic heart disease (RHD) in Alaska, preventable conditions that can follow untreated strep throat infections and can cause lasting heart damage, especially in children. 

 

New bill would allow Alaska to use vaccine advice of medical experts outside of federal government Alaska Beacon

As the Trump administration chips away at longstanding childhood vaccine standards, a newly introduced bill in the Alaska Legislature would give state health officials the option of following vaccine advice of medical experts outside of the federal government. State health officials announced on Dec. 29 that the state still recommends universal Hepatitis B vaccinations for newborns. Alaska has a higher-risk status for the virus that warrants an exception from the new general recommendations, state health officials said. 

 

Alaska's Rep. Nick Begich votes against 3-year extension of federal health care subsidies. Alaska Beacon

House passes bill to extend health care subsidies in defiance of GOP leaders. ADN

The U.S. House of Representatives voted 230-196 on Thursday to extend Affordable Care Act subsidies for three years and reverse massive cost increases that went into effect with the new year. Alaska’s lone member of the House, Republican Rep. Nick Begich III, voted against the extension, as did 195 other Republicans.

(My comment: Interesting. Mr. Begich has been very clear in meetings I’ve attended with him: “Alaska has to get off Federal money”. Yet, he’s a big supporter of the Rural Health Transformation Project which brings potential $1.4 Billion to Alaska in one-time money.)

 

Investigation of an increase in acute rheumatic fever in Alaska. EPI (Alaska DOH)

A concerning rise in acute rheumatic fever (ARF) and rheumatic heart disease (RHD) in Alaska, preventable conditions that can follow untreated strep throat infections and can cause lasting heart damage, especially in children. 

 

 

 

 

 

 

Alaska History

·     1921 Jan 24 - Alaska's first pulp mill opened in Juneau

·     1925, Jan 27 - first dog team left Nenana with serum for Nome for deadly diphtheria outbreak (serum arrived in Nome 6 days later)

·     1959, Jan 18 - Direct Long Distance phone service to Alaska began

·     1971, Jan 23 - Coldest recorded temperature (-80 F) at Prospect Creek Camp

·     1989, Jan 31 - record North American high pressure of 31.85 inches of mercury in Northway, Alaska

·     1990, Jan 16 - record 47.5 inches snowfall, Valdez

·     2025, Jan 7 - Eastern Orthodox Christmas

·     2025, Jan 22 - First Sunrise in Utqiagvik (after 65 days of no sun)

 

 

Alaska Resource Values

 

Alaska North Slope crude oil price (1/9/26): $63.58

FY26 budget (beginning 7/1/25) is fully funded at

$64/barrel of oil.



History of prices:

12/17/25: $60.06

9/2024: $63.63

9/30/23: $87.99

9/30/22: $86.91

6/29/22: $116.84

3/08/22: $125.44

12/22/21: $75.55

March 2020: $12.29

7/3/2008: $144.00

ANS production (1/13/26): 472,500 bpd


 

Mine workers ready respirators and go-bags as Red Dog contends with hazardous gas buildup. Alaska Beacon

The chemical reaction between the rock and air naturally emits sulfur dioxide, which in low concentrations can cause irritation to the nose, eyes, throat and lungs and in high concentrations can cause permanent lung damage, Yesnik’s memo said. Low temperatures and low winds have “allowed emissions to settle in lower-lying areas,” where some buildings are located — including where employees sleep and eat, according to the memo. Sulfur dioxide emissions are a rarely discussed mining problem, but the issue at Red Dog is not unprecedented, said Dave Chambers, president of the Center for Science in Public Participation, a Montana-based nonprofit that analyzes the environmental impacts of mines.

 

Precious Metal Prices

January 14, 2026

Gold - $4595.80

Silver - $87.96

Platinum - $2311.00

Copper - $6.06

Palladium - $1766.00

Rhodium - $9850.00

 

Alaska Permanent Fund

website

The projected payment to the state General Fund for upcoming Fiscal Year 2027, under the Percent-of-Market-Value (POMV) formula, is to be $4 billion, up from $3.8 billion for FY 2025, the current year.

 

The Fund’s rate of return over five years has been 9.54%

• For the first three months of the FY 2026 fiscal year, or July 1 through September 30, the Fund had $2.21 billion in “statutory net income.” 

 

Fund value January 6, 2026 - $88,400,000,000

PFD payout from ERA, Fiscal years 1982-2025: about $33 billion

Over $100 billion total earnings over lifetime of the Permanent Fund

 

 

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

Past Newsletters on my website



My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

·     Legislation Aide: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Inti Harbison (from Anchorage)

·     Office Manager: Samantha Freeborn

·     Intern coming this session: Ben Goltz (from Anchorage, student at Dartmouth College)

 

Copyright © 2026. All Rights Reserved.

 

 

 

Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd | Anchorage, AK 99516 US