Attorney General outlines statehood defense funding history and requests repeat increment for FY26

Attorney General Traig Taylor told the House Finance Committee on Feb. 21 that the Department of Law’s civil side represents most state agencies and has relied on a combination of appropriations and reimbursable receipts to fund litigation, including ‘‘statehood defense’’ cases defending Alaska’s resource and administrative authorities.

Deputy Attorney General Corey Mills said the Civil Division employs about 44 attorneys and roughly 250 total staff. She told the committee the division was recruiting for nine attorney positions, three law‑office assistants and one paralegal, down from a high vacancy period when the division had many more openings.

Statehood defense funding history and current request Mills outlined prior multiyear appropriations the department has used for federal‑court defense work: multi‑year pots (for example earlier $4,000,000 and $2,000,000 increments) and a $5,000,000 fiscal‑year 2024 appropriation the department is still spending against. She said about $1.7 million of the FY2024 $5,000,000 pot had been spent as of the department’s December accounting and that federal litigation spend trends have generally been $2–3 million a year. For FY26 the department asked the legislature to repeat a $500,000 temporary increment; the Governor’s proposal included a lesser amount.

Why it matters: The civil division represents nearly all state agencies in litigation, from consumer protection and antitrust to claims involving public‑lands development and federal agency actions. Changes in federal policy and the arrival of a new administration may change the mix and pace of litigation, but Mills cautioned that litigation often does not terminate immediately with a change in federal policy because existing cases and third‑party litigants remain active.

Other civil‑division points - The civil division bills many of its services to client agencies; roughly half of its budget is reimbursable from those agencies. - The department is projecting about 30 civil‑division employees eligible for retirement within five years and is focusing on building bench depth. - Mills described the special litigation section (complex, multistate and consumer‑protection litigation) as a concentrated resource that handles high‑discovery, high‑complexity matters.

Discussion vs. action: The Attorney General requested continued funding flexibility for statehood defense and asked for a repeat of the $500,000 increment for FY26. No formal vote occurred; the committee will review the department’s budget request during the normal FY26 appropriation process.

Ending: Taylor and Mills said they would return with more detailed spend projections and case lists as the litigation climate becomes clearer; Mills told members she expected some cases to persist for one to two years even if federal policy shifts reduced new filings.