Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

July 17, 2025

 

 

Dear friends and neighbors,

 

Tariffs Bad for Alaska!

Tim Bradner (Alaska Economic Report) reports steel prices are 60% higher than estimated for 10-mile segment of Kenai power transmission line upgrade, equaling $1.5 million increase cost. What will the remaining 31-mile segment cost (original estimate $55.3 million).

(My comment: All Railbelt Transmission system customers will see increase electric costs because of Trump Steel Tariffs!)

 

What do tariffs do to cost of Alaska LNG project? Estimate used to be $44 Billion. Now most experts estimate $70 Billion.

 

Imagine also what the High Voltage Direct Current (HVDC) subsea cable from Bradley Lake Hydro will cost. Federal funds of $62.6 million grant approved. Remember that Bradley Lake Hydro is least expensive power on the Alaska grid at 5 cents/KWH. If the cost to transmit it goes up, so does each KWH.

 

Your Questions

I try to attend all the Community Council meetings in our District E, or at least have staff present.

I'm also hosting "Catch Up with Cathy" informal meetings around the District. (see section for dates and locations)

Your questions are important. Probably others have similar questions! So I include those questions, and answers, in these newsletters.

This week, I'm responding to the question: Where's My "Full PFD" and some education questions.

 

Items in this Newsletter:

·     Catch Up With Cathy Events

·     PFD Question

·     Legislative Finance's Fiscal Newsletter

·     Behavioral Health

·     UAF Alaska Critical Mineral Accelerator Proposal Advances at NSF Competition

·     Girdwood Residents: Share Your Experience with Record Snowfall

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

·     Resource Values, Permanent Fund

 

 

 

 

Catch Up With Cathy

 

These are informal coffee conversations held on certain Saturdays from 9:00am-10:00am. The next few events are listed below. I hope to see you there!

 

July 26: 9-10am at the Kaladi Brothers Cafe on Industry Way (Huffman)

August 9: 9-10am at the Grind in Girdwood

September 13: 9-10am at the Kaladi Brothers Cafe on Industry Way (Huffman)

 

 

 

PFD Question

 

Question: Where's "my Full PFD"?

 

Answer:

Most Alaskans are beginning to realize that the police, who come when they are called, are paid for by state government. The K-12 public school that teaches their children, or educated their current employees, or educated themselves - is funded by state government. The roads that take them to their Alaska destinations are paid for by state government.

 

Alaska state government now depends for about 60% of budget funds from earnings of the Permanent Fund.

 

The Fund contains money saved by past Alaskans & invested for more than 45 years.

 

Here's a short video explaining the Permanent Fund Structure.

 

OIL TAXES DON'T PAY FOR STATE GOVERNMENT ANYMORE.

 

Here's a short video explaining how the Permanent Fund is invested.

 

The Earnings Reserve Account (ERA) grows through the receipt of Statutory Net Income (SNI), which results from investment activity—decisions to buy and sell assets—excluding unrealized gains and losses as outlined in state statute AS 37.13.145. This income, or SNI, is deposited into the ERA as it’s earned throughout the year.

However, the ERA is not just an account that accumulates funds; it is also drawn from each year to support the POMV draw and to inflation proof the Principal. The funds within the ERA are available for use by the Alaska State Legislature through its power of appropriation and a simple majority vote. (from Alaska Permanent Fund website)

 

This year's Dividend

Below:

Compare money spent last year, 2025 Mgmt Plan, in Red.

This year's budget is in Blue

The Dividend is the 3rd set of columns.

 

This year, in October 2025, the Dividend will be about $1000/person. The cost for that is about $682 Million (blue bar).

Last year Dividend cost above $900 Million (red bar).

The difference of about $270 Million could be paid for by deleting the nearly 8 departments on the right side of the chart.

 

The Governor has repeatedly proposed "Full Dividend" - cost of $2.5 Billion. That would be off the top of this chart below.

In order to hand out a "Full PFD", we would have to eliminate 18 entire departments in government. That would be from DOC (Corrections) to all the way across to the right, including the Capital budget.

The other option to pay a "Full PFD" would be to violate our spending cap on the Permanent Fund itself and take the entire $2.5 Billion from the earnings of the Fund.

That would nearly completely drain the Earnings Reserve Account of the Permanent Fund.

See 2nd graph from the April presentation of the Alaska Permanent Fund.

The $3.7 Billion "Spendable Earnings" is where the over-draw would come from.

 

 

 

 

 

Legislative Finance's Fiscal News

(Click on this first page for full newsletter)

 

 

 

Broad Based Categorical Eligibility Update

Great News!

 

Starting July 1, 2025, Alaskans can now apply for SNAP benefits under Broad-Based Categorical Eligibility (BBCE), a change made possible by legislation our office passed alongside Representative Genevieve Mina in 2024. BBCE helps more working families qualify for food assistance by raising income allowance and getting rid of the asset test, making it easier for people with high living costs to get help buying groceries. Eligible households may begin receiving benefits as early as August 1.

 

 

Behavioral Health

 

Beyond Screen Time—Addictive Screen Use Patterns and Adolescent Mental Health

 

Associated with higher risks of suicide-related outcomes

 

The investigators found that, beginning at age 11 years, nearly 1 in 3 participants had an increasing addictive use trajectory for social media or mobile phones. In adjusted models, increasing addictive use trajectories were associated with higher risks of suicide-related outcomes than low addictive use trajectories. Similarly, high addictive use trajectories across all screen types were associated with suicide-related outcomes. These findings underscore the growing concern around addictive screen use, particularly for social media, mobile phones, and video games, and its significant impact on mental health.

Full study here.

 

 

 

 

UAF Alaska Critical Mineral Accelerator proposal advances at NSF competition

 

The UAF Alaska Critical Mineral Accelerator program to reduce the United States’ dependency on foreign sources of minerals critical to the technology and defense industries has been named a semifinalist in a National Science Foundation competition. 29 semifinalists advanced from 71 entries and 294 applications.

 

Semifinalists will undergo a live virtual assessment, with winners expected to be announced in early 2026. 



UAF’s proposal would establish the Alaska Critical Mineral Accelerator at the UAF Geophysical

Institute and could bring over 10 years of funding through the NSF’s Regional Innovations

Engines program.

See NSF announcement here and UAF news bulletin here

 

 

 

Girdwood Residents: Share Your Experience with Record Snowfall

 

Were you impacted by the historic 2023–2024 snowfall? A research team at the University of Alaska Anchorage wants to hear from you. Their National Science Foundation–funded study is examining how heavy snow affected homes and roofs across the Municipality of Anchorage, and your input is especially needed.

 

So far, only a small number of responses have come from the Girdwood area. To ensure that Girdwood is accurately represented, we encourage residents to take a short (3–5 minute) survey.

 

The survey asks about:

·     Perceived risks of roof snow loads

·     Actions taken (or not taken) to manage snow buildup

·     Challenges or barriers you may have faced

 

Your responses will help shape future policies and programs to better support Alaskans facing extreme winter conditions.

 

Take the survey here: https://bit.ly/hhsnowloads

 

 

Current Topics

Under bankruptcy settlement, Alaskans can request 23andMe immediately delete their DNA data. Alaska Beacon

Alaskans can request that their DNA and personal genetic information be deleted immediately by bankrupt genetic testing company 23andMe, under the terms of a recent legal settlement.

 

Court affirms split federal-state salmon management system for Alaska's Cook Inlet. Alaska Beacon

The ruling is a win for the NMFS, an agency of the National Oceanic and Atmospheric Administration, and a loss for fishers who sought federal management of all Cook Inlet commercial salmon harvests because they were dissatisfied with state management.

 

Karelian bear dogs are protecting crews and lifting spirits at Interior Alaska fire camps. KUAC

"These are big game hunting dogs from Finland that were traditionally used to hunt brown bear and moose," he said.

 

 

Things That I Found Interesting

Greenland sled dog DNA is a window into the Arctic's archaeological past. Science News

The research also tells a story about the broader archaeological history of the Arctic. The Qimmit are closely related to a 3,700-year-old dog found in Alaska, suggesting a rapid Inuit migration from Alaska to Greenland, possibly within a few generations. “The tight genetic connection between these Greenlandic dogs and the Alaskan dogs just goes to show how tight the histories across the Arctic are,” Feuerborn says.

(My comment: I’m a “dog person”, so I’m interested in this article. I’d like to meet one of these dogs!)

 

Teens flock to companion bots. Axios

Nearly three-quarters of U.S. teens (72%) say they use AI for companionship, with more than half of those doing so every day.

 

 

Arctic Issues

Chinese container ships receive permission to sail Russia's Arctic Northern Sea route. G Captain

The same day Yemen’s Houthi militants resumed attacks against multiple vessels in the Red Sea after months of calm, several Chinese container ships received permits to transit the Arctic Ocean this summer.

 

U.S. nuclear submarine makes historic Iceland visit as Arctic security and allied patrols expand. Army Recognition

On July 9, 2025, a US nuclear-powered Navy submarine makes a historic port call in Iceland, marking the first time such a vessel has docked on Icelandic shores, as reported by U.S. Navy. The Los Angeles-class USS Newport News’ arrival at Grundartangi underscores the deepening US commitment to Arctic security and NATO’s collective defense posture, especially as Russia and China expand their activities in the region.

 

Behavioral responses of migratory caribou to semi-permeable roads in Arctic Alaska. Scientific Reports

We confirm prior findings of altered fall movements near the Red Dog road and demonstrate that movement behavior is also altered around other roads and in other seasons. Nonetheless, many collared caribou did not display altered movements in response to roads, emphasizing the need for further research to understand the mechanistic drivers of caribou movement responses.

 

U.S. Coast Guard's newest icebreaker "Storis" arrives in Seattle, prepares for first Arctic patrol. G Captain

The Coast Guard acquired the anchor handling icebreaking vessel from Edison Chouest Offshore’s subsidiary, Offshore Service Vessels LLC, in late 2024 for $125 million. The thirteen-year old vessel underwent initial conversion work at Tampa Ship LLC in Tampa, Florida this past winter.

 

 

Economy

"Big" bill shifts SNAP costs to states, saving federal dollars but causing fewer to get food aid. Alaska Beacon

 

Trade wars over everything. Axios

Economists at Bank of America called it "the game that never ends." "Tariffs on copper and the 50% tariffs on Brazil are worth watching, as they are not motivated by 'bilateral trade deficits' considerations," the economists wrote. "The next question is then how much re-escalation risky assets are willing to tolerate before correcting lower and how much pain Trump would tolerate until de-escalation occurs as it happened in April."

 

Fallout from the wild trade weekend. Axios

Trump posted a letter early Saturday threatening to impose 30% tariffs on European imports by Aug. 1. He also published a notice threatening the same levy on Mexican goods. "Thirty per cent or anything above 30 per cent — any additional counter-reaction from the United States — it has more or less the same effect. So practically, it prohibits trade," Šefčovič, who has led trade talks on behalf of Europe, added.

 

 

Energy

Budget reconciliation bill aids Alaska oil development, but also present near-term challenges with gas crisis. ADN

 

 

Education

States sue to force federal government to release $7 billion in education funding. ADN

A group of 24 states and the District of Columbia sued the Trump administration Monday over its withholding of nearly $7 billion in education funding for after-school care, English-language learning, teacher training and other programs, asking a federal judge to force the federal government to release the money.

 

Opinion: Alaska educators and school boards aren't the enemy. ADN

The real moral failure is ignoring what families are actually saying: they want a say in their children’s education, they want trusted educators in the room, and they want politics out of the classroom. That’s how you grow enrollment. That’s how you rebuild trust. Alaska’s students deserve better than this fight. They deserve collaboration, commitment and community solutions — not division.

 

Trump administration freeze of millions for adult education prompts layoffs, cuts for Alaska. Alaska Beacon

Federal funds for adult education services were among those blocked by the Trump administration on July 1, causing immediate cuts to Alaska adult education and workforce development programs and staff layoffs.

The Republican-led U.S. House voted in June to claw back $9.4 billion in federal funding, with U.S. Rep Nick Begich, R-Alaska, voting for the proposal. The cuts include $1.1 billion for public broadcasting, with more than $20 million in funding for Alaska public radio and television stations.

 

Dunleavy calls school leaders 'hysterical' as many districts submit deficit budgets. Alaska's News Source

Right as school district budgets are due to the state, Gov. Mike Dunleavy called education leaders “hysterical” as school leaders finalize budgets they characterize as including steep deficits and gouged reserves from several funding threats.

 

 

Politics

Bill requiring car rental apps to collect Alaska taxes avoids second veto. Alaska Public Media

 

Gov. Dunleavy allows tax cut for vehicle rentals to go into effect without his signature. ADN

 

Car rental tax bill, impacting apps like Turo, becomes law without governor's signature. Alaska's News Source

Earlier this year, the state Legislature passed a bill mandating that the car-rental platforms collect the tax on the vehicle owners’ behalf. On Thursday, the bill became law without Gov. Mike Dunleavy’s signature. Bills that the governor fails to sign or veto within a set period of time automatically pass into law. Matt Claman, an Anchorage Democrat who sponsored last year’s vetoed bill, said the bill does not impose new taxes, it just changes who’s required to collect them.

 

SNAP cuts spook food banks. Axios

Feeding America estimates that provisions affecting the Supplemental Nutrition Assistance Program (SNAP) could eliminate the equivalent of some 6 to 9 billion meals annually.

 

Republicans are considering changes to Trump's request for $9.4 billion in spending cuts. ADN

 

Alaska public media stations warn of dangers as US Senate prepares to vote on funding clawback. ADN

More than $15 million in annual federal funding for Alaska’s 27 public media stations is at stake as the U.S. Senate this week is set to take up a Trump administration request to claw back federal funding. President Donald Trump has asked Congress to rescind billions of dollars in previously approved federal funding, including $1 billion for public broadcasting.



 

Health Care

Most U.S. adults say child care costs are a 'major problem,' new poll finds. ADN

Americans overwhelmingly view the cost of child care as a significant issue, and most support initiatives to offer free or low-cost day care and to require employers to provide paid family leave for parents of babies, according to a new poll.

 

Health care takes big toll in cost of living in Alaska's cities, report shows. Alaska Beacon

Alaska’s three biggest cities have the highest health care costs among the nation’s urban areas, with costs that are about 50% higher than the U.S. urban average, a state analysis shows. The findings, part of a broader analysis of Alaska’s cost of living that was released by the Alaska Department of Labor and Workforce Development, are the latest in a series of reports detailing Alaska’s extraordinarily high medical costs.

(My Comment: These 50% higher costs than US will go up as folks lose Medicaid coverage, delay treatment, get more sick, go to emergency room (highest cost healthcare), can’t pay=“charity care” by hospital, so hospital costs shifted to people with insurance, insurance policy price goes up.)

 

 

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (07/15/25): $72.42

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

forecast of $64/barrel of oil.

History of prices:

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 (07/15/25): 320,293 bpd

 

 

Why oil drillers are investing big in South America. The Wall Street Journal

U.S. oil companies are shifting investments south. Exxon Mobil and Chevron have piled into the Foz do Amazonas Basin — part of the Equatorial Margin, Brazil’s most promising offshore frontier. The shale boom made the U.S. the world’s top oil producer in recent years, ahead of Saudi Arabia and Russia. But with many of the richest shale basins from West Texas to North Dakota maturing and the quality of remaining drilling locations diminishing, companies are directing billions of dollars toward South America.

 

Canadian natural gas prices could climb 60% this year as LNG exports ramp up, Deloitte predicts. Yahoo Finance

Canadian natural gas prices are poised to jump nearly 60% this year — marking the end of yearslong discounts — as a new export terminal begins shipping to global markets, a forecast from Deloitte Canada predicts. A tanker carrying the first load from LNG Canada’s terminal sailed last week from British Columbia’s northern coast, giving Canadian producers access to global markets.

 

What they're saying: mining policy edition. Axios

Domestic mining and mineral security are White House priorities, especially amid Chinese dominance. But there's a catch: clean tech sectors losing incentives are among the demand drivers that support new projects.

(My comment: Double standard. You can’t have it both ways.)

 

1 big thing: Tailwinds for U.S. rare earths. Axios

The MP deal signals a Trump 2.0 appetite for aggressively using industrial policy to bolster rare earth access — even as trade talks with China include loosing its export restrictions.

 

Catch up quick on oil: markets and sanctions. Axios

Global oil demand growth this year will be the slowest since 2009 outside of the 2020 COVID crisis, with "emerging market consumption particularly lacklustre," the International Energy Agency said.

 

China adds export controls to protect EV battery technology. The Wall Street Journal

China on Tuesday added technologies for producing materials used in EV batteries onto its list of export restrictions. Those include technology linked to battery-cathode materials production as well as nonferrous metal-processing technology, associated with raw materials in batteries. 

(My comment: Why should you care? Because Alaska minerals, mined here, are usually sent to China for refining. Once they cross into Chinese territory, they become the possession of China. Some minerals, like zinc, gallium and germanium, are refined in Canada. Oh. Wait. Trump has levied tariffs on Canada, destroying that critical economic link for the US. This is what “shooting yourself in the foot” looks like.)

 

 

Precious Metal Prices

July 16, 2025

Gold - $3361.72

Silver - $38.14

Platinum - $1438.32

Palladium - $1263.25

Rhodium - $5700.00

 

Alaska Permanent Fund

website

 

Fund value July 7, 2025 - $84,487,800,000

PFD payout from ERA, Fiscal years 1982-2024: $31.3 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)

 

Copyright © 2025. All Rights Reserved.

 

 

 

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