House Finance Subcommittee reviews DMVA FY26 budget, including $175,000 request to expand organized militia

The House Finance Subcommittee for the Department of Military and Veterans Affairs heard an overview of the department’s FY26 governor’s budget request on Feb. 20, 2025. Deputy Commissioner Craig Christensen told the committee the department has three budget items: a $175,000 general fund request to expand the Alaska organized militia, a request to reclassify about $800,000 in federal receipts to capital/interagency receipts for Homeland Security and Emergency Management (HSEM), and a $200,000 interagency-receipt request to support the Alaska National Guard Counterdrug Program.

The requests were presented by Craig Christensen, deputy commissioner of the Department of Military and Veterans Affairs, and Bob Ernst, administrative services director. Christensen said the $175,000 general fund request would “allow us to increase outreach, training, response capabilities, things like ... recruitment efforts, training, travel, supplies, and other operational costs” for the organized militia. Ernst described the HSEM item as a funding classification change—reducing shown federal receipts by $800,000 while increasing interagency receipts by $500,000 and capital interagency receipts by $300,000—so payroll and capital charges related to declared disasters and federal grants are routed through the capital budget rather than shown as federal receipts in the operating budget.

Nut graf: The department said the funding changes and the organized militia expansion are intended to improve response capacity in remote communities and to align accounting for disaster-related payroll and grant activity. Committee members asked for more detail on how the militia funds would be apportioned and on the nature of recent incursions and disaster trends.

Most significant requests

- Organized militia expansion ($175,000 UGF): Christensen and staff said the majority of the requested general fund increase would support expansion of the Alaska State Defense Force and associated organized-militia capabilities (training, recruitment, equipment such as high-frequency radio networks, and travel). Christensen said the Alaska State Defense Force currently numbers about 225 members and that the department’s longer-term goal is to grow to roughly 500 members and increase detachments in smaller communities. He emphasized that the federal National Guard is primarily federally funded and that the requested state funds are aimed at state-organized components and shared capabilities across the organized militia.

- Homeland Security and Emergency Management accounting change (net zero UGF): Bob Ernst said the department is not requesting operating general funds for HSEM; instead, the proposal moves roughly $800,000 of federal receipts into capital grants and interagency receipts to better reflect payroll charges tied to declared disasters and capital grants. Ernst summarized: “it looks like there’s no state funds, no UGF. The federal receipts have reduced by $800,000, but it’s not that federal funds have actually decreased; they’re now going through the capital side.”

- Counterdrug program ( $200,000 interagency receipts): The department requested $200,000 in interagency receipts to support the Alaska National Guard Counterdrug Program, a federally funded program that places National Guard analysts and other personnel to support state and federal law enforcement when requested. Christensen described the Counterdrug Program as federally funded and operating at the request of partner agencies, and Bob Ernst said the interagency receipts would allow the state to accept funding from a requesting state agency (for example, Department of Public Safety) and place Guard personnel on state active duty to perform analytical or outreach tasks.

Program highlights and background provided to the committee

- Alaska Aerospace Corporation: Christensen noted Alaska Aerospace Corporation administratively falls under the department but is run by an independent board and has not taken state funds since 2014; the corporation operates a Kodiak launch facility that the deputy commissioner called “a strategic national asset.”

- Alaska Military Youth Academy: Christensen said the academy is tuition-free, runs two classes per year (about 22 weeks each with a 24-month post-residential phase), and serves youth ages roughly 15–18 at risk of not graduating high school. He said the academy’s last two classes graduated a combined 244 cadets and that those classes produced 94 GEDs, 8 high school diplomas, and 26 graduates who received both a GED and a high school diploma (as described by the department).

- Veterans services: Christensen said the Office of Veterans Affairs processed over 4,000 new disability claims during the reported period and that Alaska veterans receive more than $100,000,000 annually in disability payments. He also said the department expects a possible grant for the Fairbanks Veterans Cemetery and that, because of construction season constraints, the cemetery may not be operational until FY2028 if the grant is received.

- Emergency response and organized-militia operations: The department described recent disaster response work including 140 incidents, 12 state disasters, and 3 federal disasters in the cited period; National Guard search-and-rescue activity credited 99 saves across 48 missions; the air refueling squadron scrambled 47 alerts. The department also discussed Russian and Chinese military activity near Alaska airspace; Christensen told the committee that there have been two incursions so far this year and “in the 7-ish range” last year and that most incidents do not enter U.S. airspace but are used to test U.S. responses. Christensen offered to provide additional detail to members’ offices where appropriate.

- National Guard Counterdrug interdictions: Christensen reported interdiction figures during the presentation; the transcript records his summary as “over 800,000 doses of fentanyl, 20,000 of meth, and 419 of cocaine, 650 k of illicit currency,” and that counterdrug units helped distribute naloxone kits. (See clarifying details for notation of unclear or unspecified units.)

Personnel and vacancies

The department reported 15 current vacancies for a snapshot vacancy rate of about 5.5%. Christensen noted most departmental positions have some federal match and that the Alaska Aerospace Corporation is not included in the department vacancy count because it is a separate organization.

Committee questions and follow-up

Representative Fields asked whether the youth academy addresses social media addiction; Christensen said aspects of that education are “baked into the program” and delivered through a counseling staff that blends guidance and prevention instruction but does not provide clinical treatment. Representative Fields also asked for more detail about recent incursions and how the requested funds would be divided; Christensen said the bulk of the $175,000 would support the Alaska State Defense Force and that some funds would be used holistically across the organized militia to build capabilities such as high-frequency radio networks.

No formal votes were taken during the February 20 presentation; department staff told the subcommittee they would supply additional detail on incursions and on funding breakdowns if members’ offices requested it.

The subcommittee recessed with a reminder that the next scheduled meeting is 10:15 a.m. Tuesday, Feb. 25, 2025.