House Finance cuts West Susitna road funding from capital budget

The House Finance Committee voted 6-5 Monday to adopt a $2.5 billion capital budget that strips federal funding authority for the West Susitna Access Road project, a decision that split members along partisan lines.

The committee substitute totals $347.2 million in unrestricted general funds and $1.81 billion in federal receipts. If oil prices average $80 per barrel or higher through the fiscal year, an additional $26 million in state funds would flow to school maintenance, port infrastructure, and university projects under contingent language in the budget.

The budget removes $95 million in federal receipt authority for the West Susitna Access Road Stage 2 project, which the governor requested in an April amendment to the capital budget. The 78.5-mile road would improve connectivity in the Matanuska-Susitna Borough. Alaska Industrial Development and Export Authority submitted a federal permit application for the project in July 2025.

Co-Chair Calvin Schrage said the removal addresses concerns about the state transportation improvement program carrying more federal authorization than available federal dollars.

"If you look at the STIP for this year, there is a great deal more federal authorization than there are federal funds available to be distributed," Schrage said. "And there is some concern from members that I have spoken to that having such a large project with so much federal receipt authority when there are limited dollars will divert funds from other projects towards this one."

Schrage added that public testimony during the committee process raised questions about the project that warrant further review. The legislature heard divided testimony on the West Susitna road appropriation, with hundreds of callers split over the project.

Representative Will Stapp objected to the removal, arguing the road represents one of Alaska's few active resource development initiatives.

"The West Susitna Access Project is one of the few things that we have in Alaska that is going toward positive steps for resource development," Stapp said. "We are a resource development state. We should have policies, in my opinion, on the Finance Committee that are driven for the future development of resources."

Representative Jamie Allard pressed for Department of Transportation input before the vote, saying the removal deserved public discussion. Schrage said the committee would continue working on the bill over the next several days, allowing time for additional stakeholder consultation.