A recent op-ed by U.S. Rep. Nick Begich and former Transportation Secretary Sean Duffy celebrating the Trump administration’s energy record fails to address the significant harm inflicted on Alaska’s construction industry and job market. The policies of Donald Trump, Nick Begich, and Governor Mike Dunleavy represent a sharp, detrimental break from Alaska’s tradition of non-partisan, technology-neutral support for energy development—a legacy championed by figures like Ted Stevens, Don Young, and Lisa Murkowski.
The contrast with recent bipartisan achievements is stark. In his final year, Representative Don Young, alongside Senators Lisa Murkowski and Dan Sullivan, secured a filibuster-proof majority for the Infrastructure Investment and Jobs Act, the largest infrastructure funding bill since the interstate highway system. Following Young’s passing, former Representative Mary Peltola was instrumental in passing the Inflation Reduction Act, which spurred significant energy investment. This same bipartisan cooperation led to the successful approval of the crucial Willow oil project.
At the state level, however, progress has been consistently undermined. The Dunleavy administration has impeded the development of Santos’ Pikka project by delaying permits for road access and an essential seawater treatment plant. Furthermore, the administration’s politicization of the data-driven State Transportation Improvement Program (STIP) led to the federal rejection of Alaska’s plan, forfeiting tens, if not hundreds, of millions in federal investment. In an unprecedented move, Governor Dunleavy vetoed state matching funds appropriated by the legislature, jeopardizing approximately $600 million in federal transportation dollars for the 2026 construction season. This action risks Alaska’s favorable 7% state to 93% federal match rate, leaving road builders facing potential bankruptcy.
Federal policies have compounded these challenges. The Trump administration and Congress canceled energy development projects across Alaska, including $40 million for vital rural energy initiatives in Kotzebue and other communities. The subsequent elimination of domestic energy tax incentives in a partisan budget reconciliation bill had immediate consequences, causing the Golden Valley Electric Association to halt progress on the Shovel Creek wind project. This project, along with Little Mount Susitna in the Mat-Su Valley, represented one of the most viable opportunities to reduce Alaska’s reliance on imported liquefied natural gas.
The economic damage extends beyond direct project funding. A recent budget bill passed by congressional Republicans will allow pharmaceutical companies to charge significantly more for prescriptions, with price increases expected to ripple from Medicare through private insurance rates. Concurrently, new administrative hurdles for Medicaid are projected to increase the number of uninsured Alaskans. This will raise uncompensated care costs, which in turn will drive up insurance rates for employers. For contractors, these rising operational costs make it harder to break even, let alone grow their businesses and create new jobs.
For generations, Alaska’s construction and energy industries benefited from stable, bipartisan support. That era has ended. The current leadership’s vendetta against renewable energy leaves Alaskans exposed to volatile foreign energy markets, while the state government’s mismanagement of transportation funding threatens the livelihood of every road builder in Alaska. The theme is clear: incompetence is devastating for business, and the state urgently needs leadership capable of restoring a climate of stability and job growth.
Source link