The Trump administration has included a proposal in its budget for the upcoming federal fiscal year that seeks to eliminate the Denali Commission, a federal agency vital to the development of infrastructure in Alaska villages.
This move is part of the administration’s broader initiative to reduce what it deems taxpayer waste and minimize federal involvement in localized economic development.
Julie Kitka, who serves as the federal co-chair of the Denali Commission, expressed optimism despite the administration’s proposal, citing that previous administrations have attempted similar budget cuts without success.
“We take it seriously,” said Kitka, “But we’re very hopeful that we’ll be identified and funded in the appropriations process.”
The commission was created by Congress in 1998 to collaborate with various stakeholders, including the federal government, state entities, and tribes, to address pressing needs in rural Alaska.
Over the years, it has played a pivotal role in helping villages construct power generation facilities, improve transportation infrastructure, and develop water and sewer systems.
Additionally, the agency has been instrumental in delivering job training programs and funding approximately 170 rural health clinics, channeling over $2 billion to benefit rural communities throughout Alaska.
Kitka emphasized the commission’s focus on “small and distressed communities” that are often environmentally threatened, categorizing its efforts as essential rural infrastructure projects.
In a recent allocation, the commission was awarded around $100 million aimed at upgrading fuel tanks in ten villages across Alaska, marking its ongoing commitment to community needs.
Bill Stamm, the chief executive officer of the Alaska Village Electric Cooperative, highlighted the significance of the Denali Commission, particularly its ability to provide funding that persists beyond a single fiscal year.
“It can be used as match funding for other federal programs, which is often a big hindrance to smaller communities trying to get a project done,” Stamm explained.
The potential dismantling of the commission would have critical implications for rural Alaskan communities, according to Stamm.
The Trump administration has also proposed the elimination of five other regional commissions, reiterating its stance that states are best positioned to understand and tackle their local issues.
However, Alaska’s partnership with the Denali Commission, where the state serves as a co-chair, indicates a collaborative effort towards addressing regional concerns. Just last week, Alaska Governor Mike Dunleavy spoke favorably about the commission’s ongoing fuel tank project.
Nils Andreassen, executive director of the Alaska Municipal League and a representative on the Denali Commission, reaffirmed the effectiveness of the commission’s local engagement, stating, “It’s kind of federal government at its best. It’s close to the people, it’s working with local and regional partners, and it’s delivering results.”
The House Appropriations Subcommittee on Energy and Water Development is slated to consider funding for the Denali Commission, a development that Kitka believes is a positive indication of the agency’s potential to continue its operations.
As discussions progress, Kitka is determined to advocate for the commission’s role before both the House and Senate.
Should the commission’s funding be eliminated, plans are already in place for a shutdown lasting one year, during which remaining responsibilities and funds would be transferred to a different agency.
Kitka underscored Alaska’s growing national and international importance, expressing hope that the administration would recognize the critical infrastructure needs of a state of such strategic significance.
“There is really important work that needs to be done in our state for the resilience of our communities and our people to deal with the challenges that are just growing,” she asserted, referencing concerns about the warming Arctic, resource access, and trade opportunities.
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