Alaska Delegation Announces $249 Million Federal Grant to Complete Port MacKenzie Rail Extension

ANCHORAGE, ALASKA —U.S. Senators Dan Sullivan and Lisa Murkowski and Congressman Nick Begich (all R-Alaska), and Department of Transportation (DOT) Secretary Sean Duffy, announced today that the Alaska Railroad Corporation (ARRC) has been awarded $249 million in federal funding through the Federal Railroad Administration’s (FRA) Fiscal Year 2025–2026 Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program to complete the long-awaited Port MacKenzie Rail Extension. The funding will support completion of 32 miles of rail connecting Port MacKenzie’s deepwater port facilities to the Alaska Railroad’s 500-mile main line, creating a critical new transportation corridor between Southcentral and Interior Alaska, and enhancing connections between maritime shipping, rail transportation, and industrial development. “This is a major win for the Mat-Su Borough and our entire state, and another important step toward unlocking Alaska’s extraordinary resource potential,” said Senator Sullivan. “Alaska has enormous deposits of critical minerals, world-class energy resources, and a strategic location at the crossroads of the world. But having these resources isn’t enough. We need the infrastructure to develop them responsibly and get them to market. This $249 million investment will finally help complete a long-awaited connection between Port MacKenzie and the Alaska Railroad, opening new opportunities for mineral development, supporting major energy projects like Alaska LNG, and creating good-paying jobs for Alaska’s hard-working families. It will also strengthen our supply chains, improve transportation efficiency, and bolster America’s economic and national security. I want to thank the administration, especially Secretary Duffy, Governor Dunleavy, the Mat-Su Borough, the Alaska Railroad, AIDEA, and all the local, state, and federal partners who have worked for years to make this project a reality. This is how we build a stronger future for our great state and create new opportunities for the next generation of Alaskans.” “I’m thankful to Secretary Duffy and the administration for recognizing the importance of this project, which I have long supported,” said Senator Murkowski. “This new link will help move cargo, including from resource projects in the area, while improving system safety and reducing shipping times and costs. This is exactly what we envisioned when we included the CRISI program in our bipartisan infrastructure law, and it’s why I continue to push for additional funding through our annual appropriations process. Good things happen in Alaska when we help fund infrastructure investments at the federal level.” “For decades, Alaskans have recognized the tremendous opportunity at Port MacKenzie, but realizing that vision requires sustained investment and a commitment to building the infrastructure necessary to move our resources to market,” said Congressman Nick Begich. “As Vice-Chair of the Subcommittee on Railroads and Pipelines in the U.S. House, I have worked to ensure Alaska’s unique transportation needs remain a priority in Washington. Earlier this year, we helped secure $34 million to expand Port MacKenzie’s capabilities, and today’s announcement of and additional 250 million builds on that progress by advancing the critical rail connection needed to support Alaska’s mining, energy, and industrial development. I thank Secretary Duffy and the Alaska delegation for their partnership and look forward to continuing our work to see this project through to completion.” “Alaska is America’s natural resource powerhouse, but the state needs strong infrastructure to get those resources from point A to point B safely, reliably, and efficiently,” said U.S. Transportation Secretary Sean P. Duffy. “Thanks to President Trump, and Alaska’s congressional delegation—particularly Senator Sullivan—we’re building a massive new rail supply line that will power the energy and critical mineral projects of the future. This landmark investment will generate an economic boom for the region, unleash American energy dominance, and enhance our national security.” Background: On July 21, 2026, Senator Sullivan led a letter from Alaska’s congressional delegation supporting ARRC’s application for the full $249 million federal award. In August, FRA Administrator David Fink joined Alaska Railroad officials on an aerial tour of the Port MacKenzie right-of-way, viewing the extensive embankment work already completed and the port district’s potential for future industrial development. The $311 million project includes a $249 million federal CRISI award and a $62 million non-federal match consisting of in-kind contributions from the Mat-Su Borough and cash contributions from AIDEA and the Alaska Railroad Corporation (ARRC). The CRISI Program supports projects that improve the safety, efficiency, and reliability of freight and passenger rail transportation nationwide. # # #