APPROP: OPERATING BUDGET; CAP; SUPP
Sponsored By: HOUSE RULES BY REQUEST OF THE GOVERNOR
Became Law
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Bill Overview
Analyzed Economic Effects
32 provisions identified: 26 benefits, 2 costs, 4 mixed.
More help with rural power bills
The state sets aside about $48,049,800 for Power Cost Equalization in FY 2026. The Alaska Energy Authority uses this money to lower power bills for eligible communities. Payments follow state law caps for that program.
Permanent Fund dividend pays $1,000
The law pays a $1,000 Permanent Fund dividend to each eligible person. It moves about $685.3 million from the general fund to the dividend fund to make these payments. It also deposits about $368.2 million plus $79.5 million from the general fund into the Permanent Fund principal. Another $3.798 billion moves from the earnings reserve to the general fund.
Medicaid funding for 2025 and 2026
The law provides $228,599,000 to pay Medicaid services for July 1, 2024 through June 30, 2025. It also directs that federal Medicaid money received in fiscal year 2026 is used to pay Medicaid services that year. If you are on Medicaid, this keeps your covered care funded in FY 2025 and FY 2026.
Funding keeps Alaska ferry service running
The state provides $170,780,100 to run the Alaska Marine Highway System for calendar year 2026. That includes $83.9 million from the general fund and $86.9 million from other funds. Major items include $125,959,000 for vessel operations and $21,968,400 for fuel.
More AHFC money for homes and energy
The law gives AHFC about $40,000,000 (designated receipts) to run housing and energy programs for fiscal years ending 2023–2026. It adds an estimated $131,000,000 in federal receipts for rental relief, homeless, and other housing programs for fiscal years ending 2021–2026. It also provides $800,000,000 in corporate receipts for FY 2026 housing loans, $30,000,000 from arbitrage earnings for housing programs, and $20,000,000 in federal funds for a green bank in FY 2026–2028. AHFC retains $3,185,000 for debt service before allocations.
More money for colleges and training
The University of Alaska gets $133,327,500 for July 1, 2024 to June 30, 2025, including Systemwide $15,520,000; Anchorage $2,790,000; Fairbanks $114,480,000; Juneau $220,000. The state adds $839,900 for the Alaska Vocational Technical Center. It also provides $975,000 for student aid ($650,000 Alaska Performance Scholarships and $325,000 Alaska Education Grants). Technical and vocational education funds are split this year: 4% to the education department (Galena Interior Learning Academy), 66% to the labor department for listed institutions, and 30% to the University of Alaska.
More school funding and teacher incentives
Public schools get state aid in FY 2026 using a $6,640 base per student (about $172.2 million). Districts also get about $6.78 million for student transportation and $554,000 for teacher incentives and certification reimbursements. Half of certain donations (about $461,000) go to districts as grants. Up to $30 million of lapsed funds can refill the school major maintenance grant fund. Mount Edgecumbe High School receives $494,600 in FY 2026 for devices, class size, and supports.
Builds reserves and emergency funds
The law fills the catastrophe reserve to $50 million and targets $5 million for the working reserve in FY 2026. It adds $29 million to the disaster relief fund and $13,141,700 to the fire suppression fund. It allows up to $10 million to hold a claims reserve for the state group health plan and up to $500,000 for retirement plan sponsor costs. If FY 2026 unrestricted revenue tops $6.3 billion, up to $700 million of the excess goes into the budget reserve. The FY 2026 operating budget totals about $9.385 billion, and $7.7877 million is set aside for new laws, adjusted if bills do not pass.
More child care funds in 2026
For July 1, 2025 to June 30, 2026, the state provides $6,092,200 for child care help. That includes $225,100 in federal money, a $225,100 state match, and $5,642,000 from the general fund. The funding applies as provided by the related child care law referenced in the act.
More help for treatment and energy
For July 1, 2024 to June 30, 2025, the law adds $3,100,000 for behavioral health treatment and recovery grants and $5,000,000 for the energy assistance program. It also gives $3,000,000 to the Alaska Psychiatric Institute to support care. Eligible people and households can receive grants, care, and help with home energy costs under program rules.
Pioneers' Homes pharmacy funded in 2026
Up to $4,000,000 in program receipts pays for the Alaska Pioneers' Homes pharmacy in fiscal year 2026. This money runs the pharmacy that serves Pioneers' Homes residents.
State worker raises, bonuses, and fixes
The budget funds pay and benefit terms for many state workers starting July 1, 2025, if their unions ratify the deals. It also funds negotiated bonuses under letters of agreement and requires cost reports on those payments. Up to $2,679,460 is provided in FY 2025 and FY 2026 to fix retirement account contribution issues.
Seafood marketing and farm support
The law gives $10,000,000 to the Alaska Seafood Marketing Institute for a plan covering fiscal years ending 2025, 2026, and 2027. It provides $3,200,000 for Agricultural Development in FY 2025. It also clarifies when fisheries disaster receipts received in FY 2025 can be used (across FY 2025–2027); those receipts are estimated at $0 for FY 2025.
ARPA money for COVID public health
The law provides $40,000,000 in federal ARPA State and Local Fiscal Recovery Funds to the Department of Health for COVID‑19 public health response. The money can be used across fiscal years ending 2023 through 2027 to support community health services.
AIDEA dollars support the general fund
$20,000,000 declared by AIDEA for FY 2026 is available as a dividend; after capital needs, any balance goes to the general fund. If FY 2025 revenue cannot cover general fund spending, up to $100,000,000 comes from AIDEA reserves first, and any remaining amount comes from the higher education investment fund.
Local and industry payouts from taxes
The state pays out dedicated tax and fee shares in FY 2026. Ports get about $28.71 million from the commercial vessel passenger tax collected in 2025. Regional groups get payments equal to the 2024 salmon enhancement tax (about $4.5 million) and the 2024 seafood development tax (about $2.3 million). Dive fishery areas receive about $455,000, and local governments get about $150,000 from aviation fuel tax refunds. Boat-fee funds from FY 2025 support safety: roughly 40% (up to $200,000) for marine safety education grants to schools and 60% (up to $300,000) for the boating safety program. Federal national forest money that would lapse on June 30, 2026 is instead paid to eligible local governments by law.
One-time FY25 funds for key programs
The law adds FY 2025 funds to keep operations running. Corrections receives several line items for prisons, supervision, and inmate health (for example, $3,547,400 for population management and $2,767,500 for health and rehab). Highways and Aviation get $620,400 for regional work. Subsistence research gets $50,000, and the Oil and Gas Conservation Commission gets $30,000. It also ratifies past agency spending and corrects accounts, including a $32,500,000 increase for the University of Alaska.
Funds to manage homeless services data
Up to $750,000 is reappropriated for homeless management information systems. $375,000 comes from designated program receipts and up to $375,000 from the general fund. Funds are available across fiscal years ending 2024, 2025, and 2026 to better manage services for people without housing.
SNAP systems upgrade and possible penalty
The law provides $5,954,328 to improve SNAP systems for fiscal years ending 2025 and 2026. It also sets money aside only if the U.S. Department of Agriculture re‑establishes a SNAP penalty liability for the state. These actions can improve service for SNAP households and keep the program in compliance.
Mount Edgecumbe teacher housing funds
For July 1, 2025 to June 30, 2026, the law provides $313,300 for Mount Edgecumbe teacher housing. This funding is contingent on the related teacher‑housing legislation described in the act.
Possible bonuses for union state employees
Beginning July 1, 2025, bonuses for executive‑branch employees in a bargaining unit can be paid only after two steps. The state and the union must sign a letter of agreement naming the bonus. The Governor’s Office of Management and Budget must also meet section 27(b)(1) requirements. Money is not available until both conditions are met.
Support for licensed pros and guides
For July 1, 2025 to June 30, 2026, $172,600 funds state work to implement licensing updates for architects, engineers, surveyors, and registered interior designers. Another $341,600 funds work to set up the big‑game guide permit program. Both amounts apply for FY 2026 and depend on the related laws referenced in the act.
Funds elections and judicial counsel needs
The law adds $327,272 to the HAVA election fund for election administration ($54,545 state and $272,727 federal). It also allows up to $75,000 from the general fund for special counsel costs for the Commission on Judicial Conduct in FY 2026.
Backup school and bus funding
Starting July 1, 2025, if no bill to raise the base student allocation is enacted, the fallback funding in section 30(e) becomes available. If HB 76 or a similar bill to increase student transportation funding does not become law, the fallback funding in section 30(f) becomes available. This keeps backup money ready for schools and student transportation if new laws do not pass.
Aerospace can spend extra receipts
For FY 2026, the Alaska Aerospace Corporation may keep and spend federal and corporate receipts above its base appropriation. The money must be used for operations.
Tax and PFD offices get funds
For July 1, 2024 to June 30, 2025, $536,200 goes to the Department of Revenue for administration, including $512,900 for the Alaska Retirement Management Board and $23,300 for the Permanent Fund Dividend Division. For FY 2026, $261,800 funds work to implement digital business income apportionment rules, contingent on the related law.
Smaller grant for Arctic Winter Games
The grant for Arctic Winter Games Team Alaska is set at $140,000 for fiscal years ending 2025 and 2026, down from $150,000. The program receives $10,000 less each year.
Possible cuts to cruise port payments
Starting July 1, 2025, if the 2025 commercial vessel passenger tax account is short, the state reduces payments to the first seven ports of call. The cut is proportional to the shortfall.
Removes some past budget clauses
The law repeals specific subsections from prior session laws: section 69(b), ch. 11, SLA 2022; section 64(a), ch. 1, FSSLA 2023; and section 36(j), ch. 7, SLA 2024. On June 30, 2025, it also repeals section 32(f), section 34(e), and section 44(b) of ch. 7, SLA 2024.
Funds lawsuits, judgments, and SNAP penalty
The budget provides $4,000,000 for special litigation, $3,102,700 for judgments and settlements, and $1,000,000 to support labor negotiations. It also pays an estimated $5,954,328 SNAP program penalty for federal FY 2023 across FY 2025 and FY 2026. These items fund legal costs and required payments.
Keep bonds paid and budgets steady
The law sets and funds state debt service and bond payments for the fiscal year ending June 30, 2025. Starting July 1, 2025, listed capitalization appropriations do not lapse, keeping money available for capital uses. The appropriations in section 49(b) apply only if section 50(a) is not enacted by June 30, 2025. Starting July 1, 2025, each department’s FY 2026 budget is reduced by any prior‑year negative balances of $1,000 or less.
Rules for moving agency funds in FY26
Agencies get limited authority to shift money in FY 2026. The Health Department may move up to $10 million but cannot move funds out of Medicaid Services. Family and Community Services may move up to $7.5 million within its budget. Retirement and benefits funds can shift up to $500,000 among listed accounts. Any unspent highways and aviation money lapses back to the general fund on August 31, 2026. If central service cost‑allocation receipts fall short, up to $5 million in lapsed balances can support central services for FY 2025 and FY 2026.
Sponsors & Cosponsors
Sponsor
HOUSE RULES BY REQUEST OF THE GOVERNOR
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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