Governor Mike Dunleavy addressed 15 policy topics in the 2026 State of the State address.
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.
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.
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.
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.
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.
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.
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.
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.'
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.
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.
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.
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.
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.
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."
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.