Alaska secures $70M federal match, unlocking full 2026 construction season

Alaska's Department of Transportation and Public Facilities will deliver a full construction program this summer. The state legislature appropriated $70 million in matching funds, officials told contractors during a webinar.

The House and Senate passed the appropriation March 25. The match enables DOT to draw down federal highway dollars that would otherwise go unused. DOT is programming the funds into the 2026-2029 Statewide Transportation Improvement Program now.

"The House and Senate passed it on March 25th, so a couple weeks ago now, and we all will be able to utilize that full $70, roughly $70 million, to deliver a full construction program this summer," a DOT official said during the Tentative Advertise Schedule webinar. "Very good news on that front."

The official thanked stakeholders who contacted political leadership to advocate for the match. The official called it critical to the state's ability to obligate federal funds. The updated STIP is expected to be released for public review once programming is complete.

Background

Alaska must provide a state match to obligate its full allocation of federal highway funds under programs such as the Infrastructure Investment and Jobs Act. The match typically runs 9 to 10 percent of total project costs. In early 2026, the Associated General Contractors of Alaska publicly pressed the legislature to approve the $70 million supplemental. The group warned that without it the 2026 construction season could be curtailed and some federal highway funds left unused.

The Federal Highway Administration approved Alaska's 2024-2027 Statewide Transportation Improvement Program in March 2024. That approval established the current baseline program for federally funded surface transportation projects. The new match will be programmed into the next four-year cycle, which runs through 2029.

Without the match, DOT would have been forced to delay or scale back projects programmed in the STIP. That would have directly affected the volume of highway and bridge work available to contractors statewide. The Infrastructure Investment and Jobs Act, signed in November 2021, significantly increased Alaska's expected federal highway formula funding over a five-year period. The state must provide matching funds each year to take full advantage of those increases.

Several projects that had been on a shovel-ready list are now expected to be funded and are moving toward bidding. Central Region projects include Anchorage Area Drainage Preservation, Palmer Fishhook Road pavement preservation (milepost 7 to 17), and Sterling Highway reconstruction (mile 157 to 169, phase 1). Those projects are expected to advertise in June, according to the webinar. Northern Region projects include Parks Highway Nenana River Bridge reconstruction, anticipated for mid-to-late May, and Fairbanks-area systematic signal upgrades, on schedule for September.