LaFrance administration settles longstanding Don Young Port of Alaska lawsuit for $180 million, bringing total recovery to $191.3 million

Today, Mayor Suzanne LaFrance announced the Port of Alaska will receive a cash settlement of $180 million for the longstanding MARAD lawsuit. The agreement preserves the $11.3 million already awarded in 2024 but not yet paid, bringing the total recovery to $191.3 million. The funds will go directly toward construction costs for the Port Modernization Program.

"Securing these funds for the Port of Alaska means we are able to reduce the costs of goods for all Alaskans," said Mayor LaFrance. "This lawsuit has been ongoing since 2014, and I am thrilled to finally have it settled. I want to thank Senator Sullivan, Governor Dunleavy, and all the municipal employees who have worked on this over the years."

In addition to the settlement, Mayor LaFrance has already secured a $15 million capital grant from the State of Alaska this year-with a potential for an additional $10 million by the end of the year. Under the LaFrance administration, the Municipality has sought federal grant opportunities, securing an additional $61.5 million. Combined with the lawsuit settlement, these state and federal funds bring the total outside investment secured for the Port Modernization Program during the LaFrance administration to nearly $277.8 million.

"Today's settlement is an exciting development for Alaskans, for our incredible workers, for the Municipality of Anchorage, and for the future of our great state," said Senator Dan Sullivan. "This settlement has been a team effort over many years-mayors, assembly members, state legislators and officials, our congressional delegation, and the hard-working Alaskans who do great work on the port every day. I want to thank Attorney General Blanche for coming up to our state for this announcement and MARAD Administrator Carmel for his recent visit as well. The Port of Alaska is the single most important piece of infrastructure in our state and a critical strategic seaport for our country and military. Its importance will only grow with the historic $7 billion 'Fighter Town' recapitalization of JBER. This settlement will unlock $191 million to go directly toward construction and modernization of the Port, building on the hundreds of millions of federal dollars my congressional delegation colleagues and I have secured for the project over the years. This funding will keep our great Alaskan workers on the job building out this project, help lower the high cost of living for Alaska's families, and ensure the Port continues to serve the needs of Alaskans and our national security for decades to come."

Every federal or state dollar secured for the port reduces the total amount that must be raised through future shipping surcharges by about $2.50, meaning these funds will lessen the future impact on Alaskans by as much as $694 million.

The Don Young Port of Alaska handles goods that reach 90% of Alaskans and has been designated U.S Commercial Strategic Seaport by the Department of Defense. The Port also supplies fuel for Alaska's airports and military bases. Currently, construction is underway on the first of two new cargo terminals.

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Contact: Emily Goodykoontz [email protected] 1 (907) 205-6683

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