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Opinion: Begich, Trump and Dunleavy have been a disaster for Alaska’s construction industry

Opinion: Begich, Trump and Dunleavy have been a disaster for Alaska’s construction industry
(ADN archive)

U.S. Rep. Nick Begich and Donald Trump’s transportation secretary, Sean Duffy, recently wrote an op-ed in the ADN about the Trump administration’s energy record (“Alaska is building again.”) It stunk like the moldy carpets in one of Trump’s unmaintained hotels. In my opinion, Trump, Begich, and Gov. Mike Dunleavy will go down in history as the worst politicians in Alaska’s history from the perspective of the construction industry and jobs. Their job-killing policies and bizarre attacks on rural energy projects are completely at odds with the longstanding Alaska tradition of tech-neutral support for energy development, which was championed by Ted Stevens, Don Young and Lisa Murkowski.

In his last year in office, Don Young worked with Lisa Murkowski and Dan Sullivan to win a filibuster-proof margin for the Infrastructure Investment and Jobs Act, the largest infrastructure investment since the interstate highway system. After Rep. Young tragically passed away, former Rep. Mary Peltola helped pass the Inflation Reduction Act, super-charging energy investment. Peltola, Murkowski and Sullivan also worked successfully to win approval for the Willow project. Contrast that to the Dunleavy administration’s slow-rolling development of Santos’ Pikka project by holding up permits both for road access and an essential seawater treatment plant. Meanwhile, the Dunleavy administration so thoroughly politicized the State Transportation Improvement Program (STIP) — which is supposed to be data-driven — that Dunleavy lost tens if not hundreds of millions in federal investment.

Dunleavy bungling the STIP would have been bad enough for our industry, but then Trump and Congress canceled energy development projects across Alaska and eliminated domestic energy development tax incentives. Trump canceled rural energy projects in Kotzebue and numerous other rural communities, slashing $40 million. Even worse, when Congress passed this year’s partisan budget reconciliation bill, the elimination of energy tax credits immediately caused Golden Valley Electric Association to halt progress on the Shovel Creek wind project. Shovel Creek and Little Mount Susitna, in the Mat-Su region, were the most feasible projects to reduce Alaska dependence on imported LNG. Trump’s cabinet members have visited Alaska to glad-hand, but they haven’t brought back investment in critical projects their own administration has canceled.

Now our industry faces an even more dire threat: Mike Dunleavy vetoed state matching money, appropriated by the Legislature, that’s necessary to bring in federal transportation investment — highways, airports, bridges, etc. Dunleavy is the first governor in Alaska history to veto state match, and his totally reckless action now endangers Alaska’s match rate of 7% state to 93% federal money. We have the best match rate in the U.S., but unreliable state funding due to Dunleavy endangers that match. Road builders already are hurting because of Dunleavy’s incompetence with the STIP, and now are at risk of having to sell equipment just to avoid bankruptcy as Dunleavy endangers $600 million for the summer 2026 construction season.

I wish I could say that Trump’s cancellation of energy projects, anti-development tax policy and Dunleavy’s total incompetence with road policy were the only challenges created by this wrecking crew. Unfortunately, Trump and congressional Republicans’ recent budget bill will burden contractors with even more costs. The budget bill allows Big Pharma to charge billions more for the same prescriptions, which will lead to price increases starting with Medicare and rippling through private insurance rates as well. Kicking Alaskans off Medicaid, which will be the effect of intentionally Byzantine red tape, will increase uncompensated care and further drive up rates for employers with health coverage. All of this will make it harder for contractors to break even, much less grow their businesses and expand opportunities for Alaskans.

For generations, Alaskans were lucky to have stable, bipartisan support for our construction and energy industries. Not anymore. Trump and Begich’s bizarre vendetta against renewable energy leaves Alaskans dependent on foreign energy with volatile prices. Dunleavy’s appalling mismanagement of DOTPF and basic applications for federal funds endangers every road builder in the state. There’s a theme here: Incompetence is terrible for business, and Alaska desperately needs better leadership to restore a climate of job growth.

Frank Gwartney is a retired electrical worker and resident of Anchorage.

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