Alaska runs on federal money, and a proposed rule change has people worried

Alaska nonprofits, municipalities and Tribal-finance groups warned that a proposed federal grant rewrite could make federal assistance less predictable for organizations that provide basic services across the state.

The Office of Management and Budget published the proposed rule May 29. It would revise government-wide rules for federal grants, cooperative agreements and other financial assistance.

More than almost any other state, Alaska runs on federal money. It's the funding behind the food bank, the village water plant, the domestic-violence shelter, the road repair, the emergency response.

The Foraker Group, which represents Alaska nonprofits, put it bluntly: "Alaska depends on federal funding, and it is all at risk with these proposed changes." The Alaska Municipal League warned it could ripple into the basics communities maintain with federal help — water and wastewater systems, ports and roads, public safety, broadband, disaster recovery. The government, for its part, says the rewrite is meant to improve oversight and accountability.

Many Alaska communities already run on thin staff and high costs, with short building seasons and access only by air or water, so any disruption to federal dollars lands harder.