Representative Karen (co-chair, House Transportation Committee) and Co-chair Representative Eisheide pressed the Department of Transportation and Public Facilities (DOT) for answers after the governor vetoed $70,000,000 in reappropriated capital matching funds, which committee members said could put roughly $500 million to $600 million in federal matching dollars at risk. The committee held the hearing with DOT officials absent and then moved into an executive session to continue discussion.

The reappropriated funds were explained by Representatives as intended to secure federal matches for Federal Highway and Federal Aviation programs. Representative Karen said, “Without the state's contribution of $70,000,000 in reappropriated funds, The state is not eligible for 600,000,000 in federal dollars.” She described the veto as having a direct impact on projects planned for the 2026 construction season and said the Legislature may need to appropriate the matching funds in a supplemental budget in January to secure the federal dollars.

Committee members described conflicting communications from DOT. Representative Karen summarized differing messages from DOT leadership: in a letter the DOT commissioner warned of issues in 2026 if funding were not restored, while Deputy Commissioner Catherine Keith has said DOT expects no delays in 2026 and 2027 projects. Representative Karen noted construction projects already face startup difficulties and cited last year’s statewide transportation improvement plan outcome, when the state received only $19,000,000 in STIP funds after a FAA/FHWA submission issue, compared with $108,000,000 in 2023.

The committee also raised questions about the Juneau access/Cascade Point project. Representative Karen said $37,000,000 of the originally appropriated dollars had been tied to that project and that DOT issued a request for proposals on May 23 for road, bridge and site-preparation work near Cascade Point. She said DOT had not provided evidence of feasibility studies or cost-benefit analysis for that project and that municipalities including Skagway and Haines had submitted letters of opposition. Representative Karen asked whether a contract had been awarded or signed and whether the Cascade Point work would proceed using other funds.

Representative Karen listed specific information the committee had requested but not yet received from DOT: a timeline for the Federal Highway Administration’s review of STIP amendment No. 2 (submitted to FHWA on 07/01/2025), clarification of differences between the publicly noticed STIP amendment and the version sent to FHWA, and a line-item list of federal aviation match projects and their dollar figures that were subject to the veto. She said the co-chairs’ offices had contacted DOT multiple times and had not received the requested responses.

Co-chair Representative Eisheide criticized DOT for not attending and for the late notice of the commissioner’s unavailability. “It’s disappointing that the Department of Transportation and Public Facilities commissioner Ryan Anderson did not join us today and that we were not given earlier notice of his unavailability,” Eisheide said, adding that she had recently met with Commissioner Anderson on district transportation issues and had expected continued dialogue at the hearing.

During the hearing the committee voted to go into executive session. A committee member moved “that the House Transportation Committee moves into executive session under uniform rules section 22(b)(2), discussion of subjects that tend to prejudice reputation and character of a person,” and the committee secured the room for the executive session. After returning to the public record, the committee adjourned; the record shows the meeting concluded at 2:00 p.m.

Discussion versus decision: the record documents committee questions, requests for information, and a motion to enter executive session; it does not record a formal legislative appropriation or a DOT commitment to restore funds. The committee’s outstanding requests for DOT responses were left unresolved in the public record.