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Transport Sec Sean Duffy Announces $249 million for Alaskan Port McKenzie

Posted on October 23, 2026

PALMER, Alaska (KTUU) – U.S. Transportation Secretary Sean Duffy returned to Alaska Monday to announce $249 million in grant funds to connect Port MacKenzie to the Port of Alaska.

The announcement came the day early voting began in Alaska and after a slew of federal officials have visited the state, either appearing alongside or directly stumping for Sen. Dan Sullivan, R-Alaska.

Sullivan is in the midst of a contentious race against former Democratic Congresswoman Mary Peltola. In the primary election, Sullivan trailed behind Peltola by eight points.

When asked by a reporter if the funding came tied to Sullivan’s race, Duffy replied asking, “Is that really your question?”

“What you’re missing is since Donald Trump was running for office in Trump One, when he was running for Trump Two, the president has continually talked about American energy dominance.”

Duffy added his visit wasn’t his last stop, and he was doing a “West Coast tour.

“I’m going all over as we have a lot of projects going on around the country, not just where there might be a Republican. A lot of Democrat states I’m going to as well,” he said.”

Sullivan added that his “advocacy and ability to deliver and relentlessness for Alaska knows no season.

“I don’t stop during election season, during non-election season. I’m all go, all the time. That’s what this is a result of.”

Duffy is far from the last federal official who has visited the state in recent memory: both the President and Vice President stumped for Sullivan in the past two weeks and before that, DHS Secretary Markwayne Mullin visited Kodiak Island alongside the senator.

Whether local and federal leaders thought the funding was tied to the contentiousness of Alaska’s Senate race, and an administration who wants Sullivan to keep his seat, was mixed.

“I would say so,” Mat-Su Borough Mayor, Edna DeVries, R, said leaving the event. “Look at what has happened in not only the valley, but in the state of Alaska in this last month. I think elections have consequences, of course and Trump wants certain things done in Alaska.”

“It’s hard to speculate,” Rep. Nick Begich, R-Alaska, told Alaska’s News Source.

“I think what you’re seeing right now is completely consistent with what the President has done from day one, and that’s to make sure that Alaska is unlocked for the people of Alaska, but also for the entire nation.”

A spokesperson for Peltola called the investment “great news for Alaska” and she “appreciates the Administration listening to Alaskans and investing in the state.

“Throughout her time in the U.S. House Mary was proud to champion the fight for the Port MacKenzie Rail Extension, and in the U.S. Senate, she’ll work with anyone to deliver further investment in critical infrastructure projects that put Alaska first.”

Alaska’s News Source also reached out to the Hill campaign, who is running to unseat Begich, but comment was not returned by publication.

The investment is directed towards the Alaska Railroad Corporation and comes from federal Consolidated Rail Infrastructure and Safety Improvements program.

The DOT describes CRISI as a program which “provides funding for projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail.”

The funds will be delivered by Spring, Duffy told Alaska’s News Source, and will be used to connect Port MacKenzie to the rest of the Alaska Railroad’s line by 32 miles of rail. DeVries said the construction could take two and a half years.

Additionally, an added $34 million will be matched by the Alaska Industrial Development and Export Authority, or AIDEA, Engagement and Communications Specialist Robyn Reyes said in a statement.

In a press release sent out alongside the announcement, Sen. Lisa Murkowski, R-Alaska, commended the funds and said, “good things happen in Alaska when we help fund infrastructure investments at the federal level.”

Source

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