Legislature(2025 - 2026)ANCH LIO DENALI Rm

07/22/2025 01:00 PM House TRANSPORTATION

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Audio Topic
01:08:37 PM Start
01:09:04 PM Overview(s): Summer Construction Outlook and Federal Match Funding Veto Update
01:22:34 PM Executive Session
02:00:09 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Location Change --
+ Overview: Summer Construction Outlook and TELECONFERENCED
Federal Match Funding Veto Update by the
Department of Transportation and Public
Facilities
Executive Session
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                         July 22, 2025                                                                                          
                           1:04 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Ashley Carrick, Co-Chair                                                                                         
Representative Ted Eischeid, Co-Chair                                                                                           
Representative Genevieve Mina                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Elexie Moore                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kevin McCabe                                                                                                     
Representative Cathy Tilton                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S): Summer Construction Outlook and Federal Match                                                                      
Funding Veto Update                                                                                                             
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
EXECUTIVE SESSION                                                                                                               
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
No witnesses to record                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:08:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  CARRICK  called   the  House  Transportation  Standing                                                                
Committee meeting to  order at 1:08 p.m.   Representatives Mina,                                                                
Stutes, Carrick, and Eischeid were present at the call to order.                                                                
                                                                                                                                
^OVERVIEW(S): Summer Construction Outlook and Federal Match                                                                     
Funding Veto Update                                                                                                             
                                                                                                                                
1:09:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR CARRICK announced that the only order of business would                                                                
be an  overview titled "Summer Construction  Outlook and Federal                                                                
Match Funding  Veto Update" by the  Department of Transportation                                                                
and Public Facilities.                                                                                                          
                                                                                                                                
[Commissioner Ryan Anderson and  other members of the Department                                                                
of Transportation and  Public Facilities, as invited testifiers,                                                                
were absent from the meeting and an executive session was held.]                                                                
                                                                                                                                
1:09:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  CARRICK  stated  that  the purpose  of  the  committee                                                                
meeting was  to discuss  the impacts of  the governor's  veto of                                                                
state matching  funds for  the Federal  Highway Program  and the                                                                
Federal Aviation  Program.   She noted  that  the amount  of the                                                                
matching funds totaled $62 million.  She stated that Amendment 2                                                                
to the Statewide Transportation Improvement Plan (STIP) was also                                                                
scheduled to be discussed, along with DOT&PF's redistribution of                                                                
funds.  She explained that the vetoed state funding would have a                                                                
90 percent federal match, or around $600 million.  She continued                                                                
that because of the veto,  the legislature would have to make up                                                                
around $70 million in its supplemental budget for projects.  She                                                                
added that this would just be  one of several budget issues with                                                                
the state.                                                                                                                      
                                                                                                                                
CO-CHAIR  CARRICK   stated  that  the   committee  has  received                                                                
conflicting  communication  from  the  commissioner  and  deputy                                                                
commissioner of  DOT&PF about  upcoming transportation projects.                                                                
She noted that an error  in the previous year's STIP has already                                                                
resulted in  a cut  in federal  funding.  She  further discussed                                                                
appropriated funds, expressing the understanding that the Juneau                                                                
Access Road project  had been put forward  without the necessary                                                                
feasibility  study.    She  stated that  because  of  this,  and                                                                
opposition   from    local   communities,   the    funding   was                                                                
reappropriated to other  transportation projects; however, these                                                                
funds have now been vetoed.                                                                                                     
                                                                                                                                
CO-CHAIR CARRICK  reiterated that there  were no representatives                                                                
from DOT&PF  at the  meeting.  She  stated that she  would quote                                                                
several questions  for the record directed  to DOT&PF.   For the                                                                
first question, she asked whether there  is a plan and timeframe                                                                
for the Federal Highway Program's review of Amendment 2 to STIP,                                                                
and whether this  timeline would be concurrent  with the Federal                                                                
Transit  Administration's  timeline,  so  the   funds  could  be                                                                
secured.    Next,  she  questioned the  difference  between  the                                                                
version of  Amendment 2  in  the public  notice and  the version                                                                
submitted to the Federal Highway Administration.  Concerning the                                                                
appropriation of Federal Aviation Program  funds for projects in                                                                
the northern region of the  state, she questioned which of these                                                                
projects  would  be  subject  to   the  veto.    She  continued,                                                                
questioning the  amount of funds  that would still  be available                                                                
for aviation and highway projects as of July 1, 2025.  Next, she                                                                
questioned whether  there would  be  funding shortfalls  for the                                                                
projects slated  for 2026.   She  asked about  the impact  if no                                                                
supplemental budget were made to cover the vetoed funds.                                                                        
                                                                                                                                
CO-CHAIR  CARRICK   questioned  the   reasoning  for   the  veto                                                                
concerning the  Juneau Access Road  project, as the  project was                                                                
under  the initial  bid process  at  the time.    She questioned                                                                
whether  a contract  has been  awarded  for this  project.   She                                                                
questioned whether this project is  more important than the gain                                                                
of $270 million in a  federal match.  She asked about the status                                                                
of the feasibility study and  whether there would be funding for                                                                
this.   She expressed the  understanding that the  department is                                                                
pursuing this  project regardless.  Without  an emergency action                                                                
by  the legislature,  she expressed  the understanding  that the                                                                
federal shortfalls  from the veto  would not be  made up  in the                                                                
current year's budget or for fiscal year 2026.                                                                                  
                                                                                                                                
CO-CHAIR  CARRICK   stated  that   DOT&PF  has   received  these                                                                
questions, with a timeline for  the response.  She expressed the                                                                
opinion  that this  has  significant impacts  for  all types  of                                                                
transportation across the state.                                                                                                
                                                                                                                                
1:19:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  EISCHEID  expressed  disappointment that  Commissioner                                                                
Ryan  Anderson was  not  able to  attend  the  current committee                                                                
meeting.   He added  that the  committee had  not been  given an                                                                
earlier notice of  his unavailability.  He  discussed a previous                                                                
meeting  he  had had  with  the  commissioner,  as it  had  been                                                                
productive.   He expressed the  hope that he  could continue the                                                                
conversation on  transportation issues  in East  Anchorage.   He                                                                
reiterated  the   reasons  for  calling   the  current  meeting,                                                                
explaining  that  the  legislature had  reallocated  funding  to                                                                
balance the state's budget, and this was so the state could meet                                                                
the   requirement   to   match   federal  funds   for   critical                                                                
transportation  projects.    He  noted that  this  concerns  the                                                                
required $60 million  match to receive the federal  funding.  He                                                                
argued that  the federal  funding, along  with the  state match,                                                                
would provide benefits to all Alaskans.   He spoke in support of                                                                
holding  an executive  session  to discuss  the  absence of  the                                                                
commissioner.                                                                                                                   
                                                                                                                                
^EXECUTIVE SESSION                                                                                                              
                                                                                                                                
                       EXECUTIVE SESSION                                                                                    
                                                                                                                                
1:22:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR EISCHEID  moved and  asked  unanimous consent  that the                                                                
House  Transportation  Standing  Committee   go  into  executive                                                                
session under  Uniform Rule  22(b)(2) for  matters that  may, by                                                                
law,  be  required  to  be  confidential.   He  asked  that  the                                                                
following  persons remain  in  the  room  or  online: the  House                                                                
Transportation   Standing   Committee  and   staff   and   other                                                                
legislators not on the committee.   There being no objection, it                                                                
was so ordered.                                                                                                                 
                                                                                                                                
1:23:06 PM                                                                                                                    
                                                                                                                                
The committee  took an at-ease from  1:23 p.m. to  1:59 p.m. for                                                                
the purpose of an executive session.                                                                                            
                                                                                                                                
1:59:03 PM                                                                                                                    
                                                                                                                                
CO-CHAIR CARRICK called the meeting  back to order and delivered                                                                
committee announcements.                                                                                                        
                                                                                                                                
2:00:09 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further  business before the committee, the House                                                                
Transportation Standing Committee meeting was  adjourned at 2:00                                                                
p.m.