State of the State: 2025 vs 2026
Governor Mike Dunleavy -- comparing priorities year over year
From Optimistic Agenda-Setting to Legacy Defense and Final Push
Governor Dunleavy's 2026 State of the State is markedly different in tone and structure from his 2025 address. While the 2025 speech was forward-looking and focused on laying out an ambitious policy agenda across energy, education, public safety, and resource development, the 2026 speech is overwhelmingly a retrospective defense of his administration's record — a legacy address from a term-limited governor determined to cement his accomplishments before leaving office on December 7, 2026. The 2025 speech was roughly balanced between celebrating progress and proposing new initiatives; the 2026 speech devotes the majority of its length to cataloguing achievements across every department and agency.
The most significant new policy thrust in 2026 is the introduction of a comprehensive fiscal stabilization plan. This was entirely absent from 2025. Dunleavy frames Alaska's budget volatility — driven by dependence on oil prices — as the state's "greatest challenge" and proposes a rules-based fiscal package that would protect the Permanent Fund Dividend, grow savings, and stabilize revenue. He explicitly acknowledges that "current revenues may not be enough to fund government" over the next five years before new North Slope production and LNG exports come online around 2032. He also signals openness to discussing tax policy related to the cost of natural gas for Alaskans, a notable shift from 2025 where he firmly rejected new revenue from "pick-pocketing cash from each other's pockets."
The Alaska LNG Project received dramatically expanded attention in 2026, moving from aspirational language about "signed agreements on the near horizon" to concrete milestones: Glenfarne Group formally taking over from AGDC, executed Gas Sales Precedent Agreements with Hilcorp and ExxonMobil, $10 billion in announced in-state labor and materials contracts with Alaska-based companies (ASRC, Doyon, Cruz Construction), letters of intent from ENSTAR and Donlin Gold, and a shipping partnership with Danaos for six LNG container ships. Glenfarne's CEO was invited as a gallery guest, underscoring the project's centrality to the governor's final-year agenda.
Public safety messaging shifted from statewide progress to a sharp focus on Anchorage specifically. In 2025, Dunleavy cited statewide crime reductions (overall down 37%, property crime down 42%). In 2026, while touting even larger statewide declines (overall down 41.8%, property crime down 48%), he pivoted to a pointed critique of Anchorage, noting its violent crime rate is "nearly three times the national average" — higher than Washington DC, Los Angeles, New York, and Chicago — and announcing a new State-Municipality partnership with a phased "Quality of Life" initiative targeting retail theft, drug activity, and violent crime. The fentanyl discussion shifted from enforcement statistics to a deeply personal narrative featuring Sandy Snodgrass and Bruce's Law, signed by President Trump.
Education received less policy specificity in 2026 despite continued emphasis. The 2025 speech included detailed proposals for charter school expansion, workforce training, and a "comprehensive education bill," along with pointed rhetoric about school choice and opposition to special interests. In 2026, Dunleavy updated READS Act data (third-grade proficiency rising from 44% to 60% during the school year) and mentioned still-pending legislation on charter schools, open enrollment, teacher retention incentives, and Tribal education compacting, but framed these as carryover items rather than fresh proposals. Notably, the combative pro-charter-school advocacy and anti-special-interest rhetoric around education was significantly toned down. New in 2026 were explicit proposals around child care, job training and workforce development for the anticipated building boom, and a more detailed affordable housing partnership between the State, AHFC, and municipalities.
New Priorities in 2026
- +Comprehensive fiscal stabilization plan to address Alaska's budget volatility, including a rules-based budget process, Permanent Fund and PFD protections, savings growth mechanisms, and new revenue elements — framed as the state's 'greatest challenge' requiring resolution before new oil and LNG revenue arrives around 2032.
- +Targeted Anchorage crime partnership with the Municipality, featuring a phased 'Quality of Life' initiative addressing retail theft, public nuisance crimes, drug interdiction, and violent crime, with detailed statistics showing Anchorage's violent crime rate is nearly three times the national average.
- +Workforce development legislation for an anticipated 10-15 year building boom, supporting apprenticeships, internships, and 'earn-as-you-learn' programs for trades including electricians, carpenters, plumbers, and iron workers.
- +New affordable housing partnership initiative between the State, AHFC, and willing municipalities, offering buildable land, competitive mortgage rates, lower down payments, and down payment assistance in exchange for municipal long-term tax breaks for first-time buyers.
- +Child care legislation introduced as a standalone priority tied to workforce readiness for major construction projects.
- +Discussion of tax policy related to the cost of natural gas for Alaskan residents, signaling willingness to address energy affordability through the tax code in connection with Alaska LNG.
- +Government IT modernization highlighted as a major accomplishment, including migration of 1,100 applications to Microsoft cloud, the MyAlaska mobile app with 50+ state services, mobile driver's licenses approved by TSA, and dramatic reductions in licensing processing times (nursing licenses from 13 weeks to 2.5 weeks).
- +Emphasis on artificial intelligence and emerging technology as opportunities Alaska should lead on rather than fear, with specific mentions of data centers, fiber connectivity, and Alaska's potential as a global information hub.
- +Detailed recognition of disaster response capabilities, including the Typhoon Halong response involving rescue of 51 Alaskans and evacuation of 1,000 people from Kuskokwim Delta communities.
- +Tribal education compacting mentioned as a specific legislative priority, expanding the existing Tribal Child Welfare Compact (now covering 167 tribal governments) to include education.
Dropped from 2025
- −The Alaska Department of Agriculture executive order, which was a signature 2025 initiative with detailed rhetoric about 'Alaska Grown' branding, received only a brief retrospective mention in 2026 with no new proposals or updates.
- −Specific North Slope production targets and project-by-project breakdowns (Pikka Phase 1 and 2 at 80,000 bpd each, Willow at 180,000 bpd, Nuna at 20,000 bpd, and the goal of 650,000 bpd total) were not repeated in 2026.
- −Detailed Alaska Energy Authority project descriptions — the Dixon Diversion ($342 million), Sterling to Quartz Creek Transmission Upgrade, and HVDC Nikiski-to-Beluga submarine line — with their specific job creation numbers (5,180 jobs) and economic output figures ($1 billion+) were largely absent in 2026.
- −Carbon markets and carbon capture as new revenue sources for the Permanent Fund, specifically mentioned in 2025 as future deposit sources, received no attention in 2026.
- −The competitive professional licensing reform legislation promised in 2025 to attract talent was not mentioned in 2026.
- −Sustainable forest management legislation to develop 'vast untapped timber resources' and prevent wealth from 'going up in smoke every summer' was a specific 2025 legislative proposal that disappeared in 2026.
- −The land transfer program to 'get more Alaska lands into Alaskan hands' and give every Alaskan 'a piece of the Last Frontier' was a highlighted 2025 re-introduction that was not mentioned in 2026.
- −The combative rhetoric about school choice, charter school waiting lists, and court battles against those trying to 'limit student options' was significantly reduced in 2026.
- −The Southcentral natural gas shortage, described in 2025 as requiring potentially 'painful' short-term solutions, was reframed in 2026 purely through the lens of Alaska LNG progress rather than as a standalone crisis requiring interim measures.
- −The Railbelt transmission reform to eliminate 'market-distorting wheeling charges' and create new financing tools for grid modernization received only passing retrospective mention in 2026.
Shifted Emphasis
- ↔Alaska LNG shifted from aspirational to concrete: in 2025 it was described as having 'sellers and buyers in negotiations' with 'signed agreements on the near horizon'; in 2026, Glenfarne had executed gas supply agreements with Hilcorp and ExxonMobil, signed $10 billion in construction contracts, secured LNG offtake negotiations with Japan, Taiwan, Korea, and Thailand, and announced advancement from development into execution phase.
- ↔Public safety messaging shifted from celebrating statewide crime statistics to an aggressive focus on Anchorage as an outlier, with the governor revealing that excluding Anchorage puts the rest of Alaska below national crime averages, and launching a formal State-Municipality enforcement partnership.
- ↔The Trump administration relationship evolved from enthusiastic celebration of executive orders and restored opportunities in 2025 to a more transactional accounting of specific deliverables: $183 million in highway funds, the FAST-41 permitting MOU, $272 million per year for healthcare transformation, and direct presidential promotion of Alaska LNG in congressional addresses.
- ↔READS Act coverage shifted from early-stage enthusiasm in 2025 (41% to 57% meeting benchmarks, Alaska outpacing national growth) to more mature data in 2026 (third graders going from 44% to 60% during the school year, kindergartners from 23% to 62%), with less celebratory rhetoric and more emphasis on the work still needed.
- ↔Education reform proposals went from aggressive advocacy for charter schools and school choice with pointed attacks on special interests in 2025 to a more measured 2026 framing that listed pending legislation (charter access, open enrollment, teacher retention incentives, Tribal compacting) without the confrontational tone.
- ↔Budget and fiscal discipline shifted from a proud but brief mention of 8% operating spending growth over six years in 2025 to a central policy proposal in 2026, with the governor acknowledging that oil-dependent revenue volatility is the state's greatest challenge and introducing a comprehensive fiscal stabilization package.
- ↔The Permanent Fund Dividend discussion shifted from a 2025 framing as 'our people's rightful share of resource wealth' to a 2026 acknowledgment that the PFD was the 'smallest in history adjusted for inflation' and that using it to fund government 'hurts young families, the poor, and the elderly the most.'
- ↔AIDEA went from detailed 2025 coverage of its $66 million record net income and role in resource development to a briefer 2026 mention noting a second consecutive year of record net income and cumulative dividends exceeding half a billion dollars.
- ↔Housing policy expanded from a brief 2025 mention of affordability as a goal to detailed 2026 coverage of AHFC achievements (1,900 households in Housing Stabilization Program, 592 rural professional housing units, 600 acres acquired, $300 million in dividends returned) plus a new State-municipal housing partnership initiative.
- ↔The overall speech structure shifted from a balanced 2025 agenda-setting address to a 2026 legacy speech that spent roughly two-thirds of its length defending the administration's record before pivoting to final-year priorities, reflecting the reality of a term-limited governor in his last year.
Policy Topics Addressed
Affordability
Governor Dunleavy framed affordability through the lens of energy costs and fiscal stabilization. He championed the Alaska LNG project as transformative for delivering "abundant, affordable energy that will benefit every Alaskan" and discussed tax policy conversations to ensure "the lowest cost of natural gas possible for Alaskans." He also proposed a comprehensive fiscal plan to address budget volatility driven by oil price dependence, noting that using the PFD to pay for government "hurts young families, the poor, and the elderly the most."
Agriculture
Governor Dunleavy highlighted establishing a Department of Agriculture, building infrastructure like roads and power to farm and ranch lands, and funding research at the University of Alaska Fairbanks to lay a foundation for greater food independence and food security.
Economy & Jobs
Governor Dunleavy highlighted six straight years of job growth with unemployment at 4.7%, down from 6.3% in 2018, and wages growing at 7.7% versus the national 4.8%. He touted the Alaska LNG Project as potentially the most transformative project since the Trans-Alaska Pipeline, with Glenfarne announcing Phase One execution and $10 billion in labor and materials. He also emphasized AIDEA posting record net income and the Ted Stevens Anchorage International Airport becoming the fourth-busiest cargo airport in the world.
Education
Governor Dunleavy highlighted the READS Act, noting that after two years, third-grade reading proficiency improved from 44% to 60% during the school year, with kindergartners seeing the biggest jump. He called for increased access to public charter schools, open enrollment, teacher retention incentive payments, and Tribal compacting for Native education, while criticizing the Legislature for passing only 33 bills in 120 days compared to other states' far higher totals.
Environment & Energy
Governor Dunleavy devoted a major portion of his address to energy development, celebrating the Alaska LNG Project as "the single most transformative project in Alaska since the Trans-Alaska Pipeline." He announced that Glenfarne is advancing Phase One from development into execution, with gas sales agreements from Hilcorp and ExxonMobil, representing $10 billion in labor and materials. He praised President Trump's executive order reopening NPR-A, ANWR, and offshore areas for oil and gas, and highlighted the state's positioning for advanced nuclear power, carbon capture, data centers, tidal energy, and sustainable aviation fuels.
Government Reform
Governor Dunleavy highlighted extensive government modernization including migrating over 1,100 state applications to Microsoft's cloud system, launching the MyAlaska mobile app with 50 state services, introducing mobile driver's licenses, and dramatically reducing licensing processing times (nursing licenses from 13 weeks to 2.5 weeks). He also emphasized holding budget growth to less than 1% per year, paying down debts, improving credit ratings, and proposed a comprehensive fiscal stabilization package to end budget volatility.
Healthcare
Governor Dunleavy announced Alaska will receive up to $272 million per year for five years to 'completely transform our health care system' through the federal Rural Health Transformation Program. He also highlighted the expansion of the Alaska Psychiatric Institute from 20 to 80 beds and the reopening of the Chilkat adolescent unit, noting API was previously in danger of losing federal certification.
Housing
Governor Dunleavy highlighted AHFC's work building senior housing in Fairbanks and family housing in Valdez, acquiring 600 acres from the University of Alaska for future development, and completing 592 rural professional housing units through a public-private partnership. He announced a new initiative partnering the State, AHFC, and willing municipalities to increase housing supply, offering buildable land, competitive mortgage rates, lower down payments, and technical expertise, with partner municipalities providing long-term tax breaks for first-time buyers.
Immigration
Governor Dunleavy praised President Trump's immigration enforcement, contrasting it with the Biden administration's policies. He celebrated Trump's "Unleashing Alaska" executive order and the broader shift toward enforcement, though immigration was not a primary focus of the address.
Infrastructure
Governor Dunleavy highlighted a record $183 million in federal highway funds, advancing port infrastructure in Kotzebue and Nome for Arctic shipping and national security, and celebrating Anchorage airport becoming the fourth-busiest cargo airport in the world. He detailed major progress on the Alaska LNG pipeline — calling it the most transformative infrastructure project since the Trans-Alaska Pipeline — with Glenfarne announcing Phase One advancement and $10 billion in in-state labor and materials. The state also expanded ice road maintenance to 40 rural communities and invested in broadband and ferry system improvements.
Public Safety
Governor Dunleavy made public safety his stated No. 1 priority, reporting a 41.8% overall crime reduction since taking office. He highlighted increases in State Troopers, nearly doubling Village Public Safety Officers to 84, establishing child abuse investigative units, and dedicating four Missing and Murdered Indigenous Persons investigators. He reported 42 million fatal doses of fentanyl seized in 2024 and a nearly 19% decline in overdose deaths. He also announced a new partnership with the Municipality of Anchorage to combat crime in the state's largest city, noting Anchorage's violent crime rate is nearly three times the national average.
Social Services
Governor Dunleavy highlighted the Alaska Housing Finance Corporation's work addressing affordability, noting its Housing Stabilization Program has helped more than 1,900 households representing nearly 3,700 Alaskans achieve self-sufficiency. He also emphasized rural professional housing with 592 units completed and the growth of the Tribal Child Welfare Compact to include 167 Tribal governments. He proposed initiatives focused on child care, job training, and affordable housing for the upcoming building boom.
Tax & Budget
Governor Dunleavy announced plans to introduce a comprehensive fiscal package to stabilize Alaska's volatile budget process, which relies heavily on oil prices. He emphasized holding budget growth to less than 1% annually, paying down debts, achieving four credit rating upgrades, and protecting the Permanent Fund and Dividend. He noted the state's revenue volatility is its greatest challenge to investment and called for a stable, rules-based budget process while opposing a 'tax-and-spend plan.'
Technology
Governor Dunleavy extensively discussed technology modernization of state government, including migration of over 1,100 applications to Microsoft cloud (with Alaska on track to be among the first states to operate primarily in the cloud), the MyAlaska mobile app offering 50+ state services, and mobile driver's licenses approved for TSA use. He also emphasized positioning Alaska for data centers, advanced nuclear power, carbon capture, and tidal energy, and spoke broadly about embracing AI and robotics rather than fearing technological change.
Veterans & Military
Governor Dunleavy extensively praised the Alaska National Guard, Coast Guard, and State Defense Forces for disaster response, particularly during Typhoon Halong. He recognized military leaders including Major General Torrence Saxe and highlighted Alaska's strategic importance for national defense under the Trump administration, including the INL's role in supporting the U.S. Navy. He also honored John Sturgeon, a Navy veteran who runs a Wounded Warrior hunt program on Afognak Island.