Fairbanks, AK — One of Alaska’s largest contractor associations is raising the alarm over the 2026 construction season, urging the state legislature to approve a $70 million supplemental appropriation once lawmakers convene Tuesday. Officials warn that failing to secure these funds could result in hundreds of millions in federal highway dollars going unused, jeopardizing critical infrastructure projects statewide.
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“The state needs to meet the match,” said Alicia Kresl, executive director of the Associated General Contractors (AGC) of Alaska, during a Tuesday presentation at the Greater Fairbanks Chamber of Commerce.
AGC leaders emphasized that timely legislative action is crucial to ensure the flow of federal funds, particularly for road repair and maintenance programs that support both safety and economic activity. “Without this appropriation, the state risks stalling projects that communities rely on for connectivity, commerce, and public safety,” Kresl added.
The supplemental appropriation is intended to provide the state share required to access matching federal highway dollars, which are allocated annually through programs such as the Federal Highway Administration’s Surface Transportation Block Grant. These funds help finance road construction, bridge repairs, and other critical transportation projects across Alaska’s vast and often challenging terrain.
State officials have noted that Alaska has a history of leveraging federal funds efficiently, but delays in passing necessary state-level appropriations have, in some years, limited the ability to maximize federal support. “Every dollar we don’t appropriate now could mean fewer improvements for Alaskan communities later this year,” Kresl said.
The AGC of Alaska represents hundreds of construction firms across the state, covering sectors from heavy civil work to building construction. Members report that early planning and funding certainty are essential to ensure contractors can mobilize crews, order materials, and meet seasonal work windows in Alaska’s often extreme weather conditions.
“The construction season in Alaska is already short due to winter conditions. Securing this funding now is vital for us to plan and execute projects effectively,” Kresl said.
Lawmakers are expected to debate the supplemental appropriation during the upcoming legislative session. The AGC and its partners will continue outreach efforts to highlight the economic and safety consequences of leaving federal highway funds unused.
Originally reported by Jack Barnwell in News Miner.
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