Alaska raises unemployment benefits, updates travel insurance law

Alaska's maximum weekly unemployment benefit rose from $370 to $470 when Gov. Mike Dunleavy allowed HB 302 to become law without his signature. The bill also replaces travel insurance statutes that had not been updated since 2013.

The benefit increase is the first since 2009. The dependent allowance per child triples, from $24 to $72 per week. The Alaska Department of Labor and Workforce Development will now adjust the maximum benefit annually, tying it to the average taxable wage base.

Rep. Carolyn Hall, the bill's sponsor, said the changes are aimed at keeping skilled workers in Alaska. "Updating Alaska's UI maximum weekly benefit ensures Alaska retains its local talent, stabilizes our workforce, keeps our construction and natural resource sectors competitive, and helps Alaskans stay in the communities they love," Hall said.

The Senate added the unemployment provisions on the final day of the legislative session, folding in language from HB 193, a separate Hall bill. The Senate also incorporated insurance rebate language from SB 185, which clarifies permissible rebate and discount practices for insurers. Sen. Jesse Bjorkman, speaking at the May 21 Alaska State Senate floor session, said 42 other states had already adopted the travel insurance model legislation and called it "good policy."

Travel Insurance Changes

On travel insurance, HB 302 replaces a statute that Hall described in April House Transportation Committee testimony as fitting "neatly on one piece of paper." The new law aligns Alaska with model legislation from the National Association of Insurance Commissioners and the National Council of Insurance Legislators, giving the Division of Insurance clearer authority to approve policy forms and ensure claims are paid.

"HB302 strengthens consumer protections, supports regulators, and creates a clear and fair playing field for the travel insurance industry," Hall said. "With clear rules and regulations, travel insurance providers will be more willing to enter Alaska's market, and travelers can feel confident purchasing insurance when making their travel plans."

Opposition and Passage

Not everyone supported the unemployment changes. Republican senators in the minority caucus voted against the UI amendment and against the final bill, raising concerns about benefit levels and structure, according to reporting by Governing. Supporters countered that Alaska's previous $370 maximum left seasonal workers unable to bridge the gap between construction and pipeline seasons.

Dunleavy allowed the bill to become law without his signature. The law takes effect as Chapter 65 of the 2026 Session Laws of Alaska.