In Alaska’s topsy-turvy House, legislators are at odds over how much to bank on the Iran war
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By Corinne Smith
Published on March 14, 2026.
Alaska legislators are at odds over how much to bank on the Iran war, with a potential $500 million windfall. The state's Department of Revenue predicts that the state of Alaska will collect hundreds of millions of dollars more oil revenue by June 30 than previously expected. This has led to an ongoing debate over whether or not to use savings to cover nearly $530 million in extra expenses, largely added by Gov. Mike Dunleavy, which has been included in the state budget since spring. The Senate has approved a proposal to pay for roughly three-quarters of these expenses, but the House has yet to agree. The majority wants to use the state’s Constitutional Budget Reserve, a savings account, to provide guaranteed funding. However, as currently written, the bill allows lawmakers to spend up to $373.6 million from the reserve regardless of whether the war-caused bonus becomes real. If oil prices stay high and the reserve money isn't needed, the majority could spend it on other things without further input from the minority.
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