The Don Young Port of Alaska will receive $180 million dollars from a longstanding lawsuit against the federal government, Governor Mike Dunleavy announced Tuesday at a press conference with Anchorage Mayor Suzanne LaFrance.
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Dunleavy said the settlement will help offset construction costs for the Port Modernization Program, which got underway this spring and is projected to cost $2.7 billion. The upgrade will address the port’s aging and corroding terminals, allowing for larger vessels while adhering to the latest seismic design standards. It’s the largest capital project since Anchorage became a municipality in 1975.
As a state that relies on imports and exports, Dunleavy said, Alaska needs this infrastructure.
“We’re going to have a lot of funding to be able to fix this port, upgrade this port, and really do away with a lot of worries as to whether this port is going to be able to handle the cargo that we need for the state of Alaska,” he said.
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The settlement stems from a lawsuit over botched construction at the port by the federal Department of Transportation’s Maritime Administration, known as MARAD. The work began in the early 2000s and led to years of setbacks, with sinkholes and navigational hazards at the port.
The legal back-and-forth dates to 2014. In 2024, a federal appeals court awarded the port $11.3 million. That money hasn’t been paid yet, bringing the total owed to $191.3 million.
The port handles imports that reach 90% of Alaskans. LaFrance said the settlement money will help keep the cost of imported goods down for many in the state.
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