On May 20, the Alaska Legislature adjourned. 33 bills passed both chambers of the legislature and a veto was overturned for this first time in Alaska since 2009.
Budget
The Alaska budget was a contentious topic as falling oil prices necessitated cuts to various programs, mostly related to state operations. Governor Mike Dunleavy (R) was unwilling to raise taxes to bridge the shortfall in state revenue. The Governor vetoed $122 million worth of items in the budget bill, SB 53, which he signed on June 12. The General Budget in 2026 is worth $6.2 billion, this is down from $6.5 billion in 2025.
Education
Education reform and funding was a key issue in the 2025 session with the majority coalition in the House seeking to pass HB 69 to increase the state funding formula by $1,000 per student. HB 69 was vetoed by the Governor. “For years, I’ve been clear: I support increased education funding, but it must be tied to meaningful reforms that improve student outcomes and give families more choice,” said Governor Dunleavy in a press release on his veto.
The issue of base student allocation was addressed in another bill later in session. HB 57 increases the allocation by $700 to $6,660. The bill also adds a new provision requiring school districts to establish a target average class size, outlining eligibility for school districts to receive a reading proficiency incentive grant, and requiring school districts to adopt policies that regulate the possession of cell phones in schools. HB 57 passed both chambers but was vetoed by Governor Mike Dunleavy, with the note that there is no evidence that an increase in the base student allocation will improve educational outcomes. But the legislature overrode the Governor’s veto on May 20. Several provisions of this bill, including the reading proficiency incentive grants, are tied to passage of SB 113, which is still awaiting governor action.
Outlook
Looking out at 2026, the chamber’s majority coalitions have already identified some key issues they hope to address. The House majority coalition is seeking to return attention to education funding and further fund schools to the extent they had tried to in 2025. The Senate majority coalition has highlighted its interest in effecting energy reform, seeing as no significant energy reform was passed in 2025 amid a volatile energy market. Many questions in the 2026 session regarding development and program operations will continue to be determined by oil prices.