Transportation

A state plan to build a new ferry terminal north of Juneau is hard to justify on its financial merits but could pose long-term benefits, including more flexible regional travel and a boost to the mining industry.

That’s the conclusion of an economic analysis released by the Alaska Department of Transportation in mid-October. It weighs the agency’s plan to shorten the ferry route between Juneau, Haines and Skagway by routing passengers through a new terminal located 40 miles outside the capital city.

For months, local officials and members of a key advisory board have called on the state to provide an economic analysis or feasibility study of how the project might help – or hurt – travelers. At least so far, they’re unimpressed with the resulting document.

“It’s not convincing me,” said Haines Mayor Tom Morphet. “And it’s certainly not, even in their own words, a slam dunk.”

Bob Horchover of the Alaska Marine Highway Oversight Board echoed that point during a meeting last week. He said the analysis, which was first reported by the Juneau Independent, read “like a timeshare brochure.”

“I don’t think it was realistic, and I’m not sure where they got some of their numbers,” he said.

Report calls proposed terminal “a strategic investment”

At issue is the so-called Cascade Point ferry terminal project. The state says it’s been working on the idea for several years. But DOT recently kickstarted the effort by signing a $28 million contract for the first phase of the project.

The site is located on land owned by Goldbelt, Inc., a Juneau-based Alaska Native Corporation. News of the initial contract was welcomed by Canadian mining company Grande Portage, which plans to develop an ore terminal at the site – in partnership with Goldbelt.

DOT, for its part, argues the project would reduce operating costs and ease passenger travel by moving the ferry terminal significantly closer to Haines and Skagway, shortening the ferry route.

The new economic analysis assesses those claims plus concerns raised by critics. It was written by a contractor, Ed King, who formerly served as chief economist and economic advisor for the state of Alaska.

On the whole, the report acknowledges that the project’s “extensive capital costs” are “difficult to justify based on savings alone.” Still, it paints a picture of the so-called Cascade Point ferry terminal as a project with more pros than cons – especially in the long term.

“In conclusion, although the Cascade Point Ferry Terminal presents challenges as an independent initiative,” the report reads, “it may prove valuable as a strategic investment that facilitates resource development and improves access to the Capital.”

A skeptical ferry board 

That framing drew sharp criticism from members of the Alaska Marine Highway Oversight Board during a meeting last week.

Board Chair Wanetta Ayers said it seems like the analysis aims to “build a case for Cascade Point,” as opposed to evaluating it against alternative options.

“I don’t believe it makes a strong case, certainly from a customer service standpoint, and very marginally from an economic standpoint, that the project is justifiable,” Ayers added in a follow-up interview.

That’s concerning, she said, given that dollars are already being allocated to it — and that there’s a long list of other ferry-related projects in desperate need of funding. The nearly 45-page report explores potential impacts from the terminal, which would shorten the ferry ride between Juneau, Haines and Skagway.

The analysis acknowledges that the terminal would create new infrastructure and maintenance responsibilities for the state. It also finds that “construction costs are unlikely to be recovered in a meaningful timeline without additional changes.”

Another con is that passengers would have to make up for the shorter ferry route by traveling 28 more miles outside Juneau. That would make regional travel more expensive, given extra gas, vehicle wear and tear, and ferry fares that would stay the same.

Goldbelt has committed to running a bus service to transport passengers between Cascade Point and Juneau. But uncertainty remains about the reliability and cost of that shuttle for those traveling without a vehicle – and about what the longer drive would mean for those who do bring a car.

“My guess – and obviously, I’m not an economist – is that for the average user, it’s not a clear cut win, to put it most lightly,” said Morphet, the Haines mayor. “And certainly, to a lot of people, I think would be a loss” of access.

DOT spokesperson Danielle Tessen did not directly address those concerns during an interview Wednesday morning. She said shortening the ferry route ultimately comes down to saving money for the chronically underfunded ferry system.

“That is what we’re focused on, is creating these shortened ferry distances, because that’s how we’re able to continue reducing the cost of operations,” Tessen said.

Cascade Point “not an on-its-own project,” DOT says 

The analysis concludes that the new terminal would reduce planet-warming emissions and operating costs. Shorter ferry runs would result in “modest reliability gains” and an estimated 5% bump in ridership, it says.

But the real value comes from other long-term factors.

“Cascade Point, and this terminal, it’s not an on-its-own project,” said Tessen, of DOT. “And what I mean by that is, there is a bigger plan.”

That bigger plan has two main prongs. The first is another DOT effort, known as the Chilkat Connector Feasibility Study, which has also faced fierce opposition in the Upper Lynn Canal.

The agency is assessing what it would take to build a road aimed at easing travel between Skagway, Haines and Juneau. Cascade Point, the analysis notes, would be a “foundational” component of that effort.

The second prong is regional economic development by way of mining. The analysis says the new terminal would serve as a major boon for Grande Portage Resources’ proposed New Amalga Gold Project, which would likely use Cascade Point as its logistical base.

Morphet took issue with that logic.

“It’s kind of based on this trickle-down view of the economy, that if there’s commercial or industrial development at Cascade Point, there’s a greater benefit to the public,” he said.

“But is there a greater benefit to the traveling public?” he added. “That’s what this question is about: transportation.”

Horchover, the operations board member, echoed that point.

“I don’t know exactly what the motivation is, but it sure isn’t for the good of the Alaska Marine Highway service,” he said. “That’s my two cents.”

The board has previously raised concerns that the Cascade Point planning process deviated from the ferry system’s long-range planning process. During last week’s meeting, the board voted to write a so-called “corrective action” letter to the agency and state legislature saying as much.

The state announced on Wednesday that it is soliciting public comment on phase one of the project through Nov. 28.

The federal government is proceeding with efforts to expand drilling in the Arctic National Wildlife Refuge, mining in northwest Alaska, and construction of a road between King Cove and Cold Bay on the Alaska Peninsula, US Interior Secretary Doug Burgum announced Thursday.

At an event in Washington, D.C. that was dubbed “Alaska Day” by the federal department, Burgum signed a series of documents pertaining to all three projects as well as an ongoing effort by the federal government to give land to the families of Alaska Native Vietnam War veterans.

“This is our first, this won’t be our last, Alaska Day. We have a lot more things to accomplish, a lot more things to celebrate going forward,” said Burgum, flanked by Gov. Mike Dunleavy and all three members of the state’s congressional delegation.

“I told the president, it’s like Christmas every morning,” said Dunleavy. “I wake up, I go to look at what’s under the proverbial Christmas tree to see what’s happening. And here’s another example of more presents for not just Alaska, but for this country.”

Tribal and environmental groups opposed to the three development projects saw Thursday’s action differently, with Defenders of Wildlife, a national group, dubbing the event “Alaska Sellout Day.”

“Today’s announcements are the latest step in Donald Trump’s plan to sell out our wildest landscape and natural heritage to corporate polluters,” said Dan Ritzman, director of conservation for the Sierra Club.

What was done on Thursday

Burgum signed previously announced permits for the 211-mile Ambler Road, which is intended to connect the Dalton Highway with a series of potential mine sites in the Brooks Range of northern Alaska.

He also signed a record of decision for the federal government’s oil and gas drilling program in the coastal plain of the Arctic National Wildlife Refuge of northeast Alaska.

That re-establishes a program that had been in place during the first term of President Donald Trump but which was subsequently reversed by President Joe Biden.

Burgum also reversed the Biden administration’s decision to suspend oil and gas leases issued by the federal government in 2020 to the Alaska Industrial Development and Export Authority.

Barring further litigation, that move clears the way for AIDEA — Alaska’s state-owned development bank — to begin seismic surveys that could reveal the amount of oil available within parts of the Arctic refuge’s coastal plain.

While the Ambler and ANWR actions effectively took the projects back to where they stood in 2020, the King Cove road is now closer to construction at any point in its decades-long development process.

Envisioned as a gravel road between King Cove and an all-weather airport at Cold Bay, the road would pass through the Izembek National Wildlife Refuge, a nationally important bird sanctuary.

Eleven miles of new road are needed to link existing roads to the two towns, but those 11 miles would pass through a wilderness area.

On Thursday, Burgum signed documents that complete a land exchange between King Cove Corp., the local Alaska Native corporation, and the federal government. King Cove Corp. gives up about 31,200 acres to expand the refuge, and in return, it receives the 490 acres of refuge land needed to complete the road.

In a move with more limited statewide impact, Burgum signed paperwork awarding three Alaska Native Vietnam War veterans with 160-acre plots of land under a federal allotment program. As of March, 453 veterans and their families had requested plots authorized under legislation authored by Alaska Sens. Lisa Murkowski and Dan Sullivan.

For King Cove, a medevac-avoiding road moves forward

King Cove’s airport is frequently closed by bad weather, and since 2014, there have been more than 100 Coast Guard medevacs from the community because regular air ambulance service was unavailable.

Murkowski, who has previously vowed to complete the road, noted that this is the third time that the federal government has embarked on a land exchange for the road, with the prior two attempts blocked and reversed by litigation.

“We’ve reached a point with the King Cove exchange that we haven’t yet before, and that’s actually the official patent being issued to KCC, so we’re one step further. I think that’s important,” she said.

The road, though supported by local residents, is opposed by some Yukon-Kuskokwim river delta tribal leaders and subsistence bird hunters who fear its effects on wildlife.

“Surely, the people of King Cove can see the value of leaving the habitat for so many species intact would be far more valuable than any road could be,” said  Angutekaraq Estelle Thomson, Traditional Council President of the Native Village of Paimiut, one of several communities that have supported lawsuits seeking to prevent road construction.

Rebecca Noblin, an attorney with the Center for Biological Diversity who has fought the road on behalf of several area villages, said Thursday that “we have significant questions about the legality of the exchange. We, along with the Native Villages of Hooper Bay and Paimiut, expect to bring those issues to court soon. Road construction will also require additional permits, including an Army Corps 404 permit and Endangered Species Act consultation, so this is far from a done deal.”

With Ambler and ANWR, a triumph of economics over environment

On the first day of his second term in office, Trump issued an executive order seeking to encourage oil and gas development, mining and logging in Alaska.

Elected officials said they see Thursday’s actions in line with that decision.

Alaska Republican Rep. Nick Begich said projects like the Ambler Road and ANWR drilling matter because they create jobs.

“We need the jobs. We need high-paying, good jobs, and these resource industry jobs fit that bill completely. And so whether it’s mining, timber, oil and gas development or other resources, these are necessary for the functioning of Alaska’s economy,” he said.

The coastal plain of the Arctic National Wildlife Refuge is believed to contain billions of barrels of recoverable oil that could be sold on global markets.

Sullivan noted that previous North Slope oil development has been good for the region’s residents.

“The life expectancy, mostly of the Native people in our state, has increased in the North Slope and the Northwest Arctic Borough and by dramatic numbers … and a lot of that is due to the benefits that come from responsible resource development: jobs, revenues, water and sewer, gymnasiums, health clinics. So it’s a real life and death issue,” he said.

The predominantly Alaska Native town of Kaktovik is located on Barter Island, within the refuge.

“Developing ANWR’s Coastal Plain is vital for Kaktovik’s future,” said the town’s mayor, Nathan Gordon Jr., in a written statement. “Taxation of development infrastructure in our region funds essential services across the North Slope, including water and sewer systems to clinics, roads, and first responders. Today’s actions by the federal government create the conditions for these services to remain available and for continued progress for our communities.”

To date, no oil companies have shown interest in drilling within the refuge, leaving only Alaska’s state-owned development bank, which won leases in a 2020 sale, to work there.

So far, no actual work has taken place because of repeated lawsuits seeking to overturn the sale.

The bank, which has filed several lawsuits over federal restrictions on drilling within the refuge, did not respond to a request for comment on Thursday.

Several legal challenges to the 2020 ANWR plan of development — which was restored Thursday — are still pending in federal court.

Some of those challenges revolve around the possible effects that ANWR development and the burning of those fossil fuels will have on climate change.

Thursday’s announcement came just a week after the remnants of Typhoon Halong devastated coastal communities in southwestern Alaska. Experts say that storm was worsened by climate change.

Murkowski said she does not shy away “from the fact that the impact of that typhoon was made more fierce and more destructive because it was able to travel over a large body of what is now warmer, open ocean with lack of ice. I get that, and I call it climate change.”

At the same time, people worldwide are continuing to consume fossil fuels. Murkowski said that for her, the choice is straightforward: Will they get those fossil fuels from Alaska or some place with worse environmental standards?

“I’d much rather be producing in Alaska, than just across the Bering Strait there, over in Russia, where I don’t think that they respect the same level of environmental standards and safeguards,” she said. “So is it complicated? Yes. But am I proud of how Alaska has led in terms of meeting environmental standards that are amongst the highest in the world? I am.”

What comes next for Ambler, King Cove and ANWR?

All three development projects boosted by the federal government on Thursday are a long way from construction, both supporters and detractors say.

In all three cases, proponents need to obtain additional federal permits and will have to cope with lawsuits brought by opponents.

The environmental law firm Earthjustice has repeatedly been involved in lawsuits against the federal government over the issue of arctic refuge drilling.

“Interior has re-adopted the maximally destructive plan from President Trump’s first term,” said Earthjustice attorney Erik Grafe, by email on Thursday. “That plan was unlawful in 2020 and is still unlawful today. The bedrock environmental laws that protect the Arctic Refuge’s irreplaceable natural resources remain despite Congress passing reconciliation bills on leasing in the refuge.”

The Gwich’in Steering Committee, represented by attorneys from Trustees for Alaska, is among the organizations that have repeatedly sued to block drilling in ANWR.

The committee is concerned about the effect that refuge development would have on local caribou herds used by subsistence hunters. In a statement, the committee’s executive director, Kristen Moreland, implied that further litigation will come.

“This action by the Trump administration is a direct attack on the Gwich’in, who have for decades been a voice for the caribou and stood against the destruction of the Arctic Refuge. A leasing program that would open the entire Coastal Plain completely ignores the impacts that oil and gas development would have on the land, on wildlife, and on our communities,” she said.

“We condemn these efforts by the Trump administration to exploit the calving grounds of the Porcupine Caribou herd for short-term gain, and we know that we are not alone. We will continue to raise our voices and fight for the protection of this sacred land and for our way of life.”

This is the second story in a four-part series from the Alaska Desk called Shelf Life, which looks at food security in Alaska.

In the very back corner of Skagway’s only grocery store, a laminated sign boasts: “LOCAL GROWN.” Above it sits a container with bundles of radishes. Next to them, a few boxes of greens.

But that’s all there is. Everything else in the store is shipped in from very far away – and it shows. While walking the aisles of the AC Fairway Market earlier this month, resident Katie Auer picked up a bag of partially wilted and bruised mini peppers.

“You’re telling me I’m going to pay 9 dollars and 29 cents for a bag of peppers, that I’d have to throw away over half of them?” she said, shrugging.

Grocery chain Alaska Commercial Company bought the store in 2021 from long-time local owners. And Auer is among those who contend that the store is expensive, the shelves aren’t well stocked and the produce rots quickly.

Locals say that’s particularly true during summer – and that things are better in Haines, Skagway’s closest neighbor.

“Why is our produce so much more expensive?” Auer asked. “Why is our food in general so much more expensive than Haines, when it’s 13 extra nautical miles to get here? Why is it so much more rotten?”

A few factors drive those challenges, including shipping costs and the drastic seasonal population swings that come with hosting cruise ships in the summer.

Both make it harder to keep the store well stocked and profitable.

In response, some residents seem to be doing what they can to avoid the store entirely – including getting same-day grocery deliveries by small planes.

A catch-22 

Skagway’s supermarket woes are not unique in Alaska, where communities across the state struggle to access affordable, fresh food.

But Skagway has some advantages other remote communities don’t. For starters, it’s connected to an international highway. And like much of Southeast, it’s on the barge route, which is perhaps the most efficient way to transport food.

“Certainly, within the data I see, as Southeast compares to the rest of the state and off-road Alaska, it’s a significantly lower quantity of food that actually spoils in transit to a store,” said Mike Jones, a food systems economist at the University of Alaska Anchorage.

But different communities face different challenges. In Skagway, they largely revolve around one main issue. The town’s wintertime population hovers around 900 people. Then, in the warmer months, it booms amid an influx of tourism workers and, on some days, more than 10,000 cruise ship passengers.

That sets the store up for a complicated guessing game: ordering, storing and stocking enough food to last through the week without shipping in so much that products rot in storage or on the shelves.

“In the summer, I don’t have enough space to maintain all the produce I could sell,” Lee McKinney, the Fairway manager, said. “But the other side of the coin is, if I do, a larger portion of that produce is going to go bad and have to be thrown out before I do sell it. It’s a catch-22.”

During the off-season, meanwhile, people complain that store shelves appear empty and that there are plenty of products the store doesn’t offer at all. Auer noted she prefers to drink skim milk, but that the store doesn’t carry it.

Brooke Jasky-Zuber, another local, said the store has limited organic products and few meat substitutes for her partner, who is vegetarian.

McKinney said he does what he can to meet folks’ needs, including ordering entire cases of certain products if a customer says they’ll buy all of it. But he added that he has to order specialty and more popular products based on what will actually sell.

“If I bring in that full shelf load, 90% of it’s going to date out before it sells and means I’ve got to write it off and throw it away,” he said.

“We got to make sure to make money with that space,” he added.

Quality and cost concerns

It’s less clear why the quality of food in Skagway would be worse than in Haines or Juneau. Jones, the food systems economist, said there could be a few factors at play.

He said stores could use different quality distributors. But they don’t. The Fairway in Skagway and the two Haines stores all use Rhode Island-based United Natural Foods Inc. for general grocery items. For produce, both the Fairway in Skagway and Olerud’s Market Center in Haines use a Seattle-based distributor called Charlie’s Produce.

Another factor could be the length of time food sits on the barge. But it doesn’t take that much longer for food to get to Skagway than it does to Haines or Juneau.

Product turnover could also help explain the problem. Consider a minimum shipment of lemons. It would likely take longer to sell those lemons in Skagway than in larger communities like Juneau or Haines.

“The big challenge is maintaining your product and not seeing everything date out on you because you don’t turn it fast enough,” McKinney said.

Then there’s the issue of prices, which fluctuate frequently and are determined by factors including freight costs, corporate pricing structures and more.

KHNS compared eight products at one store in Skagway to the same products at Howsers IGA Supermarket in Haines, including milk, various greens, and shelf-stable groceries. Everything was cheaper in Haines except spinach.

Jones, the economist, said that checks out.

“Skagway is on the high end within Southeast in terms of the prices that I can see for a couple products that happen to be right in front of me,” he said. “That’s not necessarily unreasonable, because they are farther up the barge away from Seattle.”

Grocery shopping by small plane

The challenges in Skagway underscore that even in communities with better access and infrastructure, struggles abound. And for some, the situation has reached a tipping point.

Auer, the Skagway local, said she hasn’t shopped at the Fairway in more than a year. Instead, she hits stores in Canada, Juneau and Haines when she can.

And she ships a lot of her food from out of town, including via Instacart — from Juneau.

Instacart is a service that allows people to order their groceries online and have someone pick them up at the store and deliver them to their doorstep.

In rural Alaska, it looks a little different. Customers can place their weekly orders from Skagway. Then, a driver in Juneau heads to Costco or Fred Meyer, shops, and delivers the food to the airport. From there, it’s loaded onto a flight and flown in – typically the same day.

“You can get two dozen free range organic eggs for $8 from Costco,” Auer said. “And they are $10.50 including shipping, including paying Instacart, tipping my driver and $1 per pound shipped here from Juneau.”

That day at the Fairway, there were two options for eggs: one cost $12 a dozen, the other about $9.

Flying food around southeast Alaska is far from new. But reliance on Instacart seems to be. Data provided by the company indicates that annual Instacart deliveries to the Juneau airport have more than doubled since 2019.

Jasky-Zuber is among those who said that relying on the local store to fill her fridge and pantry just doesn’t make sense any more. For the last four years, she’s managed the local tribe’s farm, which is where the locally grown radishes and greens in the store came from.

Jasky-Zuber said she sources most of her produce from the farm in the summertime. But otherwise, she stocks up on bulk items in Whitehorse, Canada – and ships plenty in from Juneau.

“Not because I don’t want to support our grocery store. I do,” Jasky-Zuber said. But ultimately, she added, “I find mostly other ways to get the bulk of what I need.”

The Aleut Community Store is the only shop for the Bering Sea village of St. Paul’s 300 or so residents, so most people just call it “the store.”

You can get everything you need there, from produce and cereal to kitchen appliances and fishing supplies — even a Yamaha four-wheeler.

But in June, the barge that was supposed to bring groceries canceled its trip because of rough weather. Meanwhile the cloud ceiling remained too low for planes to land. When planes can’t land and deliveries don’t make it in, shelves go bare.

“Eggs were shorted, and then milk, too. Stuff like that,” said Ben Bourdukofsky, the store’s manager.

In all, 20,000 pounds of groceries got stuck in Anchorage for over a month. When the planes finally did arrive, a lot of that food had spoiled. The tribal government, which runs the store, estimates it had to throw away about a quarter of it.

The food shortage this summer was uncommon, but it wasn’t unheard of. The Pribilofs are some of the most remote communities in the nation, and freight can be logistically difficult, expensive and unreliable.

In 2020, the Aleutian and Pribilof Islands Association partnered with the U.S. Department of Agriculture to survey community members across the region and assess their local food systems. They found that most residents rely on local stores, but that fresh, healthy options are often limited and expensive.

The survey also found that subsistence is the second most common source of food for families in the region.

The COVID-19 pandemic made things worse, exposing strains in Alaska’s food supply. A 2021 report from the National Oceanic and Atmospheric Administration found that Alaska Native communities felt the brunt of that.

In 2022, Gov. Mike Dunleavy created a food security task force to advise lawmakers on how to strengthen local production and distribution — most of what you find on grocery shelves throughout Alaska still comes in from the Lower 48.

The task force’s main recommendation was to establish a state Department of Agriculture, which it said would bolster private agriculture in the state and reduce Alaska’s reliance on imports. Farmers and agricultural groups backed the proposal, but lawmakers rejected it during this year’s legislative session, largely on procedural grounds.

A response to the pandemic

Nikolski is another island village, about 300 miles south of St. Paul. Roughly 20 to 30 people live in the village, which also has a single store. The community otherwise relies largely on subsistence.

Tribal Administrator Tanya Lestenkof says they have experienced situations similar to this summer’s food shortage in St. Paul, notably in 2007.

“Our weather was so bad that we didn’t see a plane for like, four months,” she said.

Nikolski’s subsistence practice revolves around salmon fishing and hunting the roughly 5,000 reindeer that live on the island.

“The only food that I had in the house was the reindeer that I had put up and the salmon, but I had dogs, so the dogs got all the salmon, and I ate all the reindeer. And now I can’t eat reindeer anymore,” Lestenkof said.

The community responded by building a geodesic dome for a community garden.

Lily Stamm is a project coordinator for the tribal government. She says the community ramped up their investment in greenhouses after the pandemic’s supply chain disruptions further exposed the community’s vulnerable food supply.

“We realized we were going to have a much greater need for food security out here,” she said.

Today, they have five greenhouses, housing everything from community gardens to a sauna and a small pool.

Stamm says Nikolski has made food security and food sovereignty a community project.

“In this village, they’ve really prioritized it and started some really neat projects,” she said.

Subsistence is still critical to food security

But not all community investments in food security work out. In the Aleutians and Pribilofs, high winds and poor soil make growing things very difficult.

St. Paul has tried greenhouse projects, too — including a hydroponic grow center the community built on the ground floor underneath the Aleut Community Store. It ran for several years but eventually shut down.

Today, there aren’t any large-scale growing efforts on the island.

The shelves are full in St. Paul’s store now. But Bourdukofsky says this summer’s food shortage wasn’t the first time something like this happened, and it might not be the last. The challenges of isolation and weather aren’t going away

People in St. Paul also rely on fur seals for food. Richard Zacharof has helped organize that subsistence harvest for 40 years. He says they’d be lost without it.

“It puts food in the freezers for the winter months for people to enjoy their subsistence foods that we live on,” he said. “You know, it’s all part of our DNA.”

Funding for a program subsidizing rural air travel is set to continue through early November despite the ongoing government shutdown, the U.S. Department of Transportation told airlines on Wednesday.

U.S. Transportation Secretary Sean Duffy said Monday that funding for the Essential Air Service program, the source of the subsidy, could lapse as soon as Oct. 12. That date has now been pushed back to Nov. 2, according to notice to air carriers from Principal Deputy Assistant Secretary Daniel Edwards.

“Air carriers must continue to fulfill their obligations under existing contracts unless or until the Department notifies air carriers otherwise,” the document reads.

Essential Air Service subsidies are meant to ensure small communities have access to air travel, even if commercial flights aren’t necessarily profitable. The program supports more than 170 routes in 34 states and Puerto Rico with grants that total nearly $600 million a year, according to an October report from the Transportation Department.

That includes 65 Alaska communities at a cost of $41.7 million per year, most of which are not connected to the road system.

“Of all of the Essential Air Service communities around the country, we are the ones that really define what it means when we say essential,” Sen. Lisa Murkowski said on the call-in program Talk of Alaska on Tuesday.

The extended deadline is a relief to airlines serving the state, Alaska Air Carriers Association head Will Day said in an interview.

“That’s hopeful, from an industry perspective. It gives time for the government to recover and appropriate those funds,” he said. “We’re cautiously hopeful that funding will be restored before Nov. 2, and business continues as usual.”

Even if funding does run out, some airlines serving Alaska communities say they’re not expecting disruptions, at least in the short term. But the impacts would be uneven, Day said.

Smaller airlines would face an especially difficult path forward. Day said a small carrier serving the Interior community of McGrath would be forced to nearly quadruple its fares for a one-way flight to or from Anchorage.

Alaska Airlines, which receives about 40% of the state’s total subsidy for routes serving Adak, Cordova, Yakutat, Gustavus, Petersburg and Wrangell, said Essential Air Service funding is “necessary to maintain this vital community service” in a statement from spokesperson Tim Thompson.

But flights would continue even if funding lapsed, he said.

“Despite this potential uncertainty, Alaska Airlines currently plans to continue operating reliable flights as scheduled while the federal government works to resolve the shutdown,” Thompson said.

In Southeast Alaska, Alaska Seaplanes Marketing Manager Andy Kline said the subsidies helped keep fares down but made up a relatively small portion of the smaller carrier’s overall revenue. The company receives some $2.1 million per year for routes from Juneau to Angoon, Kake, Tenakee Springs, Elfin Cove and Pelican.

“We are ‘steady as she goes’ with all of our regular deliveries and will be that way for the foreseeable future,” Kline said in an email.

Island Air Service, which receives $1.3 million yearly to operate 13 Essential Air Service routes from Kodiak, also plans to continue flying as scheduled through at least mid-November, co-owner and operations director Erik Howard said in an interview.

“We’re going to do our best to just kind of keep providing service to the Essential Air Service communities as best we can uninterrupted, and hopefully the government figures it out,” he said. “But if it does go more than a month, then we might have to reevaluate and see from there.”

The state’s second-largest Essential Air Service carrier, Grant Aviation, offered support for the program and said it was advocating for funding to be restored but did not say whether passengers should expect disruptions.

Day, with the Alaska Air Carriers Association, said he hoped the shutdown would be resolved ahead of the early November deadline.

“At this time, we’re just paying a lot of attention and hoping that things get resolved quickly,” he said. “Towards the end of the month, we’ll start to be more concerned.”

Democrats and Republicans each blame each other for the shutdown, which shows little sign of resolving anytime soon.

Republicans need 60 votes to pass a government funding bill through the Senate, which requires support from some Democrats. Democrats, meanwhile, have said they are not willing to end the shutdown without an extension to expiring health care subsidies, a rollback of some health care cuts included in President Donald Trump’s signature One Big Beautiful Bill Act, and limits on the president’s power.

Alaska’s lone U.S. House member, Republican Rep. Nick Begich III, said Democrats were holding programs like Essential Air Service “hostage” and that their demands amounted to a “$1.5 trillion-dollar partisan spending spree.”

“The stark reality here is that this shutdown didn’t have to happen,” Begich said in a statement. “Republicans passed a clean, responsible bill to keep the government open and ensure programs like EAS continue uninterrupted.”

Republican U.S. Sen. Dan Sullivan also blamed the shutdown on Democrats and said in a statement that he was “actively working with the Secretary of Transportation and his team to ensure funding disruptions are avoided if at all possible.”

“I’m also pressing more of my Senate Democratic colleagues to come to their senses and quickly pass our clean, bipartisan continuing resolution to reopen the government and safeguard these and other vital programs that millions of Americans rely upon,” he said.

Murkowski offered support for negotiations to end the shutdown.

“We’re trying to figure out, can we get this off of dead center? Because there is no win, in my view, for either side. There is no win for anybody in a government shutdown,” she said.

Alaska Desk reporter Avery Ellfeldt contributed reporting.

Editor’s note: The graphics in this story were generated using an AI tool and verified by an editor and reporter. Alaska Public Media’s news team follows NPR’s ethics policy. You can find their AI section here.

On a dreary evening late last week, dozens of people packed into the back of the Haines Public Library. Before long, two attendees broke into a chant.

“No road! No road! No road!” they shouted.

Their words captured the tenor of the gathering, which centered around a controversial effort by the state of Alaska to study what it would take to build a road that would – at least in theory – better connect Juneau, Haines and Skagway.

The Department of Transportation and Public Facilities announced the study last spring, indicating that the plan was to assess options for the route along the west side of the Lynn Canal.

The agency organized last week’s open house-style event to provide information to the community and get feedback.

“We’re trying to show people what this project looks like, what potential benefits there are. We also want to understand everybody’s concerns,” said Greg Lockwood, DOT’s Southcoast region project manager.

Some locals have expressed support for the idea, noting that the state ferry system is unreliable and that a road could open up access for recreation and other purposes. But others are opposed, for a long list of reasons.

Attendee Shannon Donahue, who initiated the “no road” chant, is among them. In an interview, she said that as she sees it, it’s clear the state’s central goal is to “create roads to resources.”

“It’s unlikely that this whole thing is going to come to fruition,” Donahue said. “Pieces may come to fruition. Roads to logging, roads to mines, and you know, that can do a lot of damage.”

Others at the open house raised the same concern, particularly given that state officials recently unveiled plans to remove longstanding logging restrictions in the Haines State Forest and open up the entire area to logging. The potential west-side road would run through that forest and could provide better access for timber sales.

In a phone interview following the open house, DOT’s Lockwood said finding ways to partner with and benefit industry is an important part of the process. He added that the potential project “is just not purely a ferry terminal, and road to a ferry terminal.”

“If we can find added value, a freight dock, if we can find a way for mining trucks coming from the Yukon to use [a west side road] and stay out of town, or if there’s timber to be harvested, that would all be value added that would help support this roadway,” Lockwood said.

Critics of the idea have also raised concerns including the rugged terrain along the canal, which would complicate building a road and maintaining it, particularly during winter.

Other worries include implications for people traveling by ferry without a vehicle – and potential environmental impacts of the road itself.

“The Marine Highway is an excellent alternative,” said Sky Skiles, another attendee. “I think putting money into that to keep it in good shape is a better alternative than to cause so much damage to our environment.”

A new ferry terminal, route options

The idea of building a road between Juneau and Haines has been around for decades. But it’s never come to fruition, despite a smattering of earlier feasibility studies. This time around, the study will cost at least $1 million and is being carried out by DOWL LLC, a Washington-based consulting firm.

Gov. Mike Dunleavy’s administration says a road would create more cost-effective and efficient transportation for the region. That idea is that the road in Haines would reduce the length of ferry service between the two locations.

The contractor is studying two main route possibilities, which were illustrated in detail on maps set up during the event last week. Both rely on a yet-to-be-built ferry terminal at Cascade Point, about 30 miles north of Juneau.

The state signed an initial contract for that project this summer, a move that sparked criticism in the upper Lynn Canal but was welcomed by a mining company planning an ore shipping facility in the same location.

Under the first route option, travelers starting in Juneau would need first to travel from town to Cascade Point. From there, they would take a ferry across the canal to William Henry Bay, at which point they would drive north until they hit a bridge back into Haines.

In the second option, travelers would still need to get to Cascade Point and board a ferry. But the ferry would take them further north to Pyramid Harbor, near Haines. From there, they’d drive a much shorter distance to a bridge and then cross back into Haines.

Notably, neither option, as illustrated on maps, indicates how people would get to Skagway.

Lockwood, of DOT, emphasized that it’s still early days, and the agency is still purely gathering information.

“People need to understand this, this isn’t a done deal.” he said. “We haven’t made any decisions.”

The agency plans to have a draft report in December and a final version in January, which will be used to inform next steps. The public can ask for more information and provide feedback by emailing ChilkatConnector@dowl.com.