All Roll Calls
Yes: 117 • No: 100
AlaskaHB 5334th Legislature - First Session (2025)HouseWALLET
APPROP: OPERATING BUDGET; CAP; SUPP
Sponsored By: HOUSE RULES BY REQUEST OF THE GOVERNOR
Became Law
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
48 provisions identified: 40 benefits, 1 costs, 7 mixed.
K-12 state aid funded for 2026
The state funds K–12 school aid for FY 2026. It adds about $1.1119 billion to the public education fund. About $35.07 million comes from the public school trust fund and about $1.0769 billion comes from the general fund.
More funding for schools and buses
The law funds K–12 state aid for FY 2026 using a base student allocation of $6,640 (about $172,176,800). It adds about $67,812,273 for student transportation and another $6,781,200 in transportation grants to districts. It provides $22,884,400 for regional and small districts. It also puts $34,882,150 into state aid for school construction.
$1,000 PFD and fund transfers
The law pays a $1,000 Permanent Fund Dividend to each eligible person in FY 2026. It sets aside about $685.3 million to cover the checks and admin costs. It also deposits $368.2 million into the Permanent Fund principal, plus an extra $79.5 million. It moves $3.798 billion from the Fund’s earnings reserve into the state’s general fund. About $26.525 million of FY 2026 income goes to the Alaska capital income fund.
Medicaid funding boost and service limits
Beginning July 1, 2025, the state funds $3,005,954,700 for Medicaid Services for FY 2026. A temporary increment in FY 2026-2027 raises clinic and rehab rates for behavioral health while rates are rebased. The Department of Health can also spend the federal Medicaid receipts it gets in FY 2026 on services that year. The law bars spending this appropriation on abortions unless they are mandatory under state law and limits spending to mandatory Title XIX and approved optional services.
Lower power bills in rural areas
The law funds Power Cost Equalization for FY 2026, up to about $48,049,800. If you qualify for this program, it helps lower your electric bill. Funds come from the program’s endowment and follow state rules.
More infants qualify for early help
The Infant Learning Program now serves more children. Grantees must serve kids with a 25% delay in one area, or a 20% delay in two areas. This replaces the old 50% delay rule. More infants and toddlers can get early intervention services.
Cut jail costs and seek federal payments
The state moves to stop fully paying for unsentenced federal inmates in state facilities and will seek federal daily payments or other housing. The Department of Corrections must also permanently close one housing unit at Spring Creek and report savings by December 20, 2025. For communities where unused jail beds averaged over 60% in FY 2024-2025, FY 2027 contracts must cut contracted beds by two-thirds and reduce costs; a status report is due December 20, 2025.
Support for insurance oversight and reinsurance
The state provides $1,000,000 from insurance program receipts for actuarial support in FY 2026 and FY 2027. It also lets the Division of Insurance use federal reinsurance receipts for the state reinsurance program in those years. This helps review rates and steady the individual market.
Funding for disasters and wildfires
The disaster relief fund gets about $32,344,800 for FY 2026 ($9,000,000 federal and $23,344,800 state). Fire suppression gets about $97,838,400 ($20,500,000 federal and $77,338,400 state sources). This pays for response and recovery when fires and disasters strike.
More loans for clean water systems
The state puts about $20,258,600 into the Alaska clean water fund and $32,666,100 into the drinking water fund for FY 2026. It also provides required matches (clean water ≈ $3,797,200; drinking water ≈ $5,622,500) using revenue bonds and limited general funds. This expands low-cost loans for community water and sewer projects.
Stronger public and teacher pensions
The state adds $79,807,000 to public employee pensions and $138,982,000 to teacher pensions for FY 2026. It also allows up to $500,000 to cover extra actuarial costs for retirement benefit calculations if needed. These payments strengthen pension funding and keep benefit calculations accurate.
Vaccine program funded by assessments
For the year ending June 30, 2026, about $25,000,000 in vaccine assessment receipts go into the vaccine assessment fund. This money pays for vaccines through the state program.
Budget reserves and backup transfers
If unrestricted general fund revenue in FY 2026 is over $6.3 billion, leftover money (up to $700 million) moves to the budget reserve. If FY 2025 revenue falls short, up to $100 million moves from AIDEA reserves first, then the rest from the higher education investment fund. If central services cost-allocation receipts fall short, up to $2,000,000 of lapsing balances moves to OMB for FY 2026–FY 2027. These safeguards help the state pay bills and keep services running.
State disaster and working reserves funded
The state keeps $50 million unobligated in the insurance catastrophe reserve for FY 2026. The Department of Administration can use the reserve as needed for legal purposes. The working reserve keeps a $5 million unobligated balance, funded from unspent salary and benefit appropriations that lapse.
State pays bond and lease debts
The law pays state debt for FY 2026. It covers general obligation bonds (for example, $18,398,750 for 2023A and $9,793,875 for 2015B), airport revenue bonds (about $22,935,675 plus $10,000,000 for early redemption, and $1,000,000 from passenger charges), and clean and drinking water bonds ($1,080,000 and $1,030,500). It also pays $2,893,500 for lease obligations on certificates of participation and $2,792,217 for listed project debts.
More money for job training schools
The law distributes Alaska technical and vocational education funds for FY 2026. About 66% (≈ $14,596,200) goes to the Labor Department for named training schools, such as AVTEC (17% ≈ $3,759,600). About 30% (≈ $6,634,600) goes to the University of Alaska system (25% ≈ $5,528,800; UA Southeast 5% ≈ $1,105,800). Another 4% (≈ $884,600) supports Galena Interior Learning Academy operations.
More state tax shares to local governments
The state pays the first seven cruise ports their 2025 passenger‑tax share in FY 2026 (about $28.71 million), cut proportionally if the account is short. It refunds local shares of the 2025 fisheries business tax ($17.908 million) and fishery resource landing tax ($5.994 million), plus 2026 electric/telephone cooperative tax ($4.436 million) and liquor license fees ($790,000). It refunds aviation fuel tax or surcharge to local governments in FY 2026 (about $150,000). It also distributes federal national forest income that would otherwise lapse on June 30, 2026 to eligible local governments and REAAs by law.
State worker pay raises and health fund
Starting July 1, 2025, the state funds salary and benefit adjustments for executive, court, legislative, and University of Alaska employees. It funds bonuses in letters of agreement and requires cost and payment reports on Feb 1, 2026 and Sept 30, 2026. If a listed agreement is not ratified (and for the university, not approved by the Board of Regents), the related funding is cut. The law also adds $10,000,000 to keep the AlaskaCare group health fund at a 1.5x claims reserve and allows up to $500,000 to shift among retirement and benefits funds.
Budget flexibility for health and family services
The Family and Community Services commissioner can move up to $7,500,000 among that department’s budgets and must report moves by September 30, 2026. The Health commissioner can move up to $10,000,000 among health budgets but cannot take money from the Medicaid Services line; a report is due the same date. These tools can shift money between programs during the year.
Retirement checks for former elected officials
The law provides $1,175,573 in FY 2026 to pay benefits owed to eligible members and survivors under the elected public officers’ retirement system.
Medical premiums for fallen officers' families
For FY 2026, the state pays medical insurance premiums for eligible surviving dependents of peace officers and firefighters. It also covers related Department of Public Safety administrative costs. The appropriation is about $50,000.
Pharmacy funding for Pioneers' Homes
For FY 2026, the state lets the department use up to $4,000,000 of pharmacy receipts to run the Pioneers' Homes pharmacy. The amount depends on actual receipts from residents’ prescriptions. This supports medicine access for Pioneers' Homes residents.
Backup funding for workers’ comp benefits
If initial money is not enough, the law adds the extra funds needed to pay workers’ compensation benefits. It covers the benefits guaranty fund, the second injury fund, and the fishermen’s fund in FY 2026. This protects injured workers’ payments.
Extra donations go to AVTEC operations
If donations to the Alaska Vocational Technical Center in FY 2026 are higher than the budget, the extra goes to AVTEC’s operating account. This keeps added support with the center and its students.
Teacher incentives and certification help
The law sets aside $554,000 for FY 2026. It reimburses national board certification first, then pays teacher incentive bonuses with the remaining funds. Incentive payments are first-come, first-served under state law.
Grants for regional seafood marketing
About $2,300,000 from the 2024 seafood development tax is paid in FY 2026 to regional seafood development associations. The grants fund promotion, infrastructure, education, research, and market development for seafood businesses.
Energy grants and community aid from PCE
The law moves $6,315,507 from the PCE endowment to the renewable energy grant fund. It also moves $13,333,300 to the community assistance fund for FY 2026.
Funds for central state administration
The state provides $107,238,000 for central administrative services in FY 2026. $12,488,200 is from the general fund and $94,749,800 is from other funds.
Funds for fisheries, hatcheries, and boating
The state pays regional salmon associations about $4.5 million from the 2024 salmon enhancement tax in FY 2026. It pays a regional dive fishery association about $455,000 from the FY 2025 assessment. About $1.273 million in range, print, permit, and access fees go to the fish and game fund in FY 2026. 60% of FY 2025 boat fees (about $272,819, capped at $300,000) fund the FY 2026 boating safety program. If fisheries disaster receipts are received in FY 2026 (now estimated at $0), they fund relief through FY 2028.
Plan to cut IT and AI costs
The IT office must deliver a plan by December 20, 2025 to slow growth in cloud and software costs. It must also provide a prioritized AI plan with project uses, costs, and expected benefits.
Small funds for veterans memorials
The law pays 5% of the veterans’ memorial endowment (about $8,859) for FY 2026 memorial needs. It also directs net fees from special veteran license plates (about $6,700 after costs) to memorial upkeep and projects.
Small funds for well and mine cleanup
The law funds land and well cleanup in FY 2026. It provides about $150,000 from a bond settlement to the oil and gas commission. It directs about $150,000 in bond interest, about $30,000 from the mine reclamation trust, and about $50,000 from a settlement to natural resources for reclamation.
State covers vendor and card fees
Agencies get money to pay collectors or trustees who bring in state fees and taxes in FY 2026. Agencies that take credit cards also get funds to cover card service fees. Payments come from the same accounts where the money was deposited.
Funds for children’s trust and derelict boats
About $16,000 from specified fees goes to the Alaska Children’s Trust grant account in FY 2026. About $44,500 from vessel fees, penalties, sales, and donations goes to the derelict vessel prevention fund. These small funds support children’s services and removal of abandoned boats.
Funds for prison costs and victim aid
The state pays about $16,170,163 to cover Goose Creek Correctional Center obligations in FY 2026. It also moves $1,682,500 from denied dividend payments into the crime victim compensation fund. These actions support prison operations and victim assistance.
Marine highway backstop and ship fund
If federal money for the Alaska Marine Highway falls short from Jan 1 to Dec 31, 2026, the state covers the gap up to $5,000,000. Money from any Alaska Marine Highway asset sales in FY 2026 goes into the vessel replacement fund. These steps help keep ferry service operating and plan for new vessels.
Money to run 2026 elections
The state provides $2,870,300 to the Division of Elections. This pays for costs of the statewide primary and general elections in FY 2026 and FY 2027. The funding supports voting operations across Alaska.
More time to use road funds
Highway and aviation funds from a 2024 law no longer expire on August 31, 2025. They stay available until June 30, 2026. This gives more time to use money on those projects.
State pays Anchorage garage obligation
The state pays $3,303,500 in FY 2026 to cover the Linny Pacillo Parking Garage obligation owed to Alaska Housing Finance Corporation.
Money set aside for child care, schools
The law sets aside $7,787,700 for bills assumed to pass in FY 2026. Examples include $494,600 for Mt. Edgecumbe High School, $313,300 for teacher housing, and about $5,642,000 for child care assistance and grants. If a listed bill fails or is vetoed, its money is reduced.
More support for higher education fund
WWAMI medical education loan repayments, about $575,000 in FY 2026, go into the Alaska higher education investment fund. This adds resources for higher education programs funded by that account.
Small grants for safety, arts, and youth
The law gives about $181,879 (capped at $200,000) to support marine safety education. It grants about $7,000 from NRA plate fees to youth clay target programs and about $10,000 from a trust fund to Arctic Winter Games Team Alaska. It also gives about $80,000 in arts plate fees to the State Council on the Arts to run the plate program.
Conditional bonuses and education fallback
Bonuses for executive branch employees only pay out if a union letter of agreement is signed and OMB meets set requirements. A SNAP-related appropriation activates only if USDA issues a notice setting a federal FY 2024 liability. Extra school funding in two items only activates if new bills to raise the base student allocation or student transportation funding do not pass. These are fallback payments tied to clear triggers.
End old rules and fix small deficits
Starting July 1, 2025, each department’s FY 2026 budget is reduced to clear prior-year negative account balances of $1,000 or less. The law also repeals several specific sections from past budget laws. These are technical clean-ups with small dollar effects.
Study possible prison closure and savings
Corrections must report by December 20, 2025 on closing a facility. The report must identify which closure saves the most money. It must include long‑term savings and transition and capital costs. This is a study, not a closure order.
School fund reports and donation grants
School districts must report fund balances twice, by the end of the count period and by February 1, 2026. The state compiles and sends the data by December 20, 2025 and February 15, 2026. The law also gives 50% of certain donations, about $461,000, to districts as grants based on adjusted average daily membership.
AIDEA dividend and gaming funds to budget
The law makes $20 million available from AIDEA for FY 2026; after capital deductions, the rest goes to the general fund. AIDEA keeps its unrestricted loan interest, fees, and income for its own funds in FY 2026. It also moves about $27.934 million left in the large passenger vessel gaming tax account to the general fund on June 30, 2026.
FY2026 budget timing and receipt rules
Program spending changes if federal or program receipts differ from what was assumed, and extra receipts are used only after a required review. Capitalization appropriations in the named sections do not lapse. Many sections take effect retroactively (some to March 31, 2025; others to June 30 or July 1, 2025), and some take effect immediately. Appropriations in Sec. 49(b) apply only if Sec. 50(a) is not enacted.
Sponsors & Cosponsors
Sponsor
HOUSE RULES BY REQUEST OF THE GOVERNOR
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/20/2025
EFFECTIVE DATE(S) ADOPTED Y27 N13
Yes: 27 • No: 13
Senate vote • 5/7/2025
PASSED Y16 N4
Yes: 16 • No: 4
House vote • 4/16/2025
EFFECTIVE DATE(S) FAILED Y25 N15
Yes: 25 • No: 15
House vote • 4/15/2025
AM NO 78 AS AMD FAILED Y19 N21
Yes: 19 • No: 21
House vote • 4/14/2025
AM NO 32 FAILED Y10 N30
Yes: 10 • No: 30
House vote • 4/11/2025
AM NO 1 ADOPTED Y20 N17 E3
Yes: 20 • No: 17
Actions Timeline
(S) DPS INTENT LANGUAGE REPORT
1/20/2026Senate(H) DPS INTENT LANGUAGE REPORT
1/20/2026House(H) FISCAL NOTE MEMO TRANSMITTED TO GOVERNOR 10/01/25
10/15/2025House(H) LEG FINANCE APPROPRIATION MESSAGE 9/30/25
10/15/2025House(S) LEG FINANCE APPROPRIATION MESSAGE 9/30/25
10/15/2025Senate(H) TO LEGAL SERVICES
8/2/2025House(H) GOVERNOR VETO OVERRIDDEN Y45 N14 E1
8/2/2025House(H) EFFECTIVE DATE(S) OF LAW SEE CHAPTER
7/30/2025House(H) LINE ITEM VETO AND REDUCTIONS
7/30/2025House(H) SIGNED INTO LAW 6/12 CHAPTER 10 SLA 25
7/30/2025House(H) FISCAL NOTE PACKET TRANSMITTED TO GOVERNOR 5/27/25
7/30/2025House(H) MANIFEST ERROR(S)
7/30/2025House(H) 11:30 A.M. 5/27/25 TRANSMITTED TO GOVERNOR
7/30/2025House(H) VERSION: CCS HB 53(BRF SUP MAJ FLD H)
5/20/2025House(H) EFFECTIVE DATE(S) ADOPTED Y27 N13
5/20/2025House(H) ...CHANGES TITLE OF LEGISLATION
5/20/2025House(H) CBRF SECTION(S) FAILED Y22 N18
5/20/2025House(H) CC RPT ADOPTED Y23 N17 CCS HB 53
5/20/2025House(H) CC REPORT TAKEN UP
5/20/2025House(S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/20/2025Senate(S) CBRF SECTION(S) ADP VOTE Y18 N2
5/20/2025Senate(S) CC RPT ADPTD Y17 N3 CCS HB 53
5/20/2025Senate(S) CC REPORT TAKEN UP
5/20/2025Senate(S) CC REPORT READ
5/19/2025Senate(S) TECHNICAL TITLE CHANGE
5/19/2025Senate
Bill Text
CCS HB 53(brf sup maj fld H)
5/20/2025
Enrolled HB 53
5/20/2025
CCS HB 53
5/19/2025
SCS CSHB 53(FIN) am S
5/7/2025
SCS CSHB 53(FIN)
5/5/2025
CSHB 53(FIN)
4/11/2025
CSHB 53(FIN) am(brf sup maj fld)(efd fld)
4/11/2025
HB 53
1/22/2025