Source: United States Senator for Alaska Dan Sullivan
07.01.25
WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska) today voted to pass the One Big Beautiful Bill Act of 2025. This transformative legislation includes numerous provisions to unleash Alaska’s extraordinary resource potential, deliver tax relief for hard-working families and small businesses, make the largest investment for the U.S. Coast Guard in history, secure the southern border and halt the flow of deadly fentanyl, continue the build-up of Alaska-based military, upgrade Alaska’s aviation safety, strengthen Alaska’s health care and nutrition programs, protect Alaska’s most vulnerable communities, and achieve historic savings for future generations.
“This comprehensive legislation is the product of months of relentless, focused work on behalf of Alaskans—and it delivers significant wins for our state. I think it is safe to say, no state fared better from this bill,” said Sen. Sullivan. “From Day One of these negotiations, which have been going on for months, I fought to ensure that Alaska wasn’t just included, but prioritized. An overriding focus of mine in shaping this legislation was ensuring it helps to unleash Alaska’s private sector economy for the benefit of our hard-working families and more job creation. The One Big Beautiful Bill works in concert with President Trump’s Day One, Alaska-specific executive order to unleash Alaska’s vast natural resource potential, restoring and establishing in law the first Trump administration’s mandate to unlock ANWR, NPR-A, and Cook Inlet for responsible resource development. These provisions are focused on creating good-paying jobs, generating billions of dollars in new revenues for the state, and putting Alaskans back in the driver’s seat of our economic future. Importantly, the historic resource development provisions cement regular lease sales into law for Alaska to guard against attempts by future Democratic administrations and Senate leaders to use regulatory powers to lock up our state and shut down our economy, as was done with President Biden’s 70 executive orders and actions targeting Alaska, what I called the ‘Last Frontier Lock-Up.’
“A second overriding focus of mine in shaping this legislation was ensuring it benefits Alaska’s working families. On that front, this bill is a home-run. We prevented the largest tax hike in history—more than $4 trillion—and locked in permanent, lower tax rates, an enhanced Child Tax Credit for millions of families, an increased standard deduction used by over 90 percent of taxpayers, a small business deduction that drives job creation and local economic growth, and an enhanced Child and Dependent Care Tax Credit—which incorporates language from a standalone bill I cosponsored, in addition to other deductions that will help Alaskans keep more of what they earn.
“As Chairman of the Commerce Subcommittee overseeing the U.S. Coast Guard, I also fought to secure the largest investment in Coast Guard history—nearly $25 billion, which includes funding for 16 new icebreakers and $300 million to homeport the Coast Guard icebreaker Storis, in Juneau. And, with the Golden Dome initiative, we’re building the next generation of homeland missile defense—new interceptors, sensors, and radar systems to protect the entire country, with the cornerstone of this vital system continuing to reside in our great state. We’re also working to redevelop existing Arctic infrastructure, like the very strategically located Adak Naval Base in the Aleutians.
“With this bill, we are also securing our southern border with the most robust enforcement package in a generation—$46 billion for the wall, billions more for Border Patrol and law enforcement, and resources to crack down on the flow of deadly fentanyl into Alaska.
“Finally, contrary to the fear mongering from critics and naysayers for months on this legislation, I was able to secure significant funding—I am confident it will exceed about $200 million per year for five years—to modernize Alaska’s health system, stabilize our rural providers, improve patient outcomes, keep standalone hospitals open, and empower state leaders to maintain coverage for vulnerable Alaskans. The bill also includes commonsense work requirements for these benefits, ensuring able-bodied Americans utilizing these programs are contributing to our economy, and shoring up the social safety net program for those it was intended to support–struggling single parents, children and individuals with disabilities or mental health challenges. At the same time, Alaska faces challenges that no other state deals with, which is why we secured flexibility for our state government to implement the new Medicaid and SNAP work requirements, giving the state breathing room to fix program challenges without hurting Alaskans who rely on these benefits.
“From resource development to tax relief for small businesses and middle class families, to national defense, especially our Coast Guard, to securing our border, to strengthening our health care, this legislation reflects years of determined advocacy for Alaska. The final result is a transformative package full of historic wins for Alaska that will positively shape the future of our state for decades to come.”
- Growing Alaska’s Economy and Good-Paying Jobs Through Historic Legislation to Unleash Alaska’s Extraordinary Natural Resources
Senator Sullivan fought to ensure this legislation unleashes Alaska’s natural resource potential, with provisions mandating at least four new area-wide lease sales in the ANWR Coastal Plain over the next decade, directing the Secretary of the Interior to expeditiously resume at least five lease sales in the NPR-A, and mandating a minimum of six lease sales over 10 years in Cook Inlet. The bill reopens areas designated as available for oil and gas leasing during the first Trump administration, and directs more revenues from the NPR-A, ANWR, and Cook Inlet to the State of Alaska, increasing the state’s percentage of the share to 70 percent for future leases. The legislation restores the leasing rules implemented during the first Trump administration—key to unlocking federal revenues from resource development in both ANWR and the NPR-A. The bill streamlines environmental reviews under NEPA by allowing project sponsors to opt into expedited timelines through a fee-based system—cutting review periods in half. The bill also creates a new Energy Dominance Financing program at the Department of Energy that has the potential to accelerate the momentum of the Alaska LNG project.
Finally, the bill requires increased timber harvests and long-term contracts in national forests and on public lands, including in the Tongass National Forest.
The One Big Beautiful Bill Act of 2025:
- Requires BLM to hold at least 4 additional area-wide ANWR lease sales in the Coastal Plain over the next 10 years, with revenues divided 70 percent for the State of Alaska and 30 percent for the federal government starting in 2034—up from 50 percent;
- Requires the Secretary of the Interior to expeditiously restore and resume lease sales under the NPR–A oil and gas program as directed by federal law—5 lease sales within 10 years of enactment under terms, conditions, stipulations, and areas described in the first Trump administration’s 2020 NPR-A Integrated Activity Plan and Final Environmental Impact Statement and Record of Decision—and directs that the State of Alaska receive 70 percent of revenues generated from development activity on future leases starting in 2034–up from 50 percent;
- Requires a minimum of six lease sales over 10 years in Cook Inlet, with at least 1 million acres per sale and with revenues divided 70 percent for the State of Alaska and 30 percent for the federal government starting in 2034—up from 27 percent;
- Reverses the Biden-era royalty hike by reinstating a lower 12.5-16.67 percent on offshore and onshore federal oil and gas leases;
- Restores commonsense leasing rules that we saw under the first Trump administration that are a prerequisite to generating federal revenues from production in both the NPR-A and in ANWR—more lands, more leasing on a more prescriptive timeline;
- Streamlines the NEPA environmental review process by allowing project sponsors to opt in for faster timelines through a fee-based system, halving review periods;
- Includes a $5 billion increase for critical minerals supply chains, opening new opportunities for Alaska’s mining industry;
- Requires increased timber harvests and long-term contracts in national forests and public lands, including in the Tongass National Forest;
- Creates a new Energy Dominance Financing program within the Department of Energy to support enhancement and development of reliable energy infrastructure, providing another vehicle for the Alaska LNG project to accelerate development of the gasline;
- Places a 10-year moratorium on the methane tax; and
- Provides $1 billion for the Defense Production Act to conduct critical mineral mining operations, including in Alaska.
“This energy package is a huge victory for Alaska’s jobs and economy, and for America’s energy future,” Sen. Sullivan said. “It’s time to unleash Alaska’s extraordinary resource potential: This bill mandates lease sales—1.6 million acres in ANWR, 20 million acres in NPR-A, and millions of acres in Cook Inlet—so we can tap into the state’s vast resources and create good-paying jobs for thousands of Alaskans. Importantly, we were able to secure a strong 70-30 split for ANWR, Cook Inlet, and future NPRA-leases, which will deliver untold new revenues to the State of Alaska.
“Combined with President Trump’s Executive Order, ‘Unleashing Alaska’s Extraordinary Resource Potential,’ this is a huge opportunity to jump start natural resource development and create new jobs in Alaska. These Alaska-driven provisions will lower energy costs for American families, create good-paying jobs for Alaskans, and generate billions in new federal revenues to realize our energy potential and put Alaskans back in the driver’s seat of our state’s economy.”
- Delivering Tax Relief for Hard-Working Families and Small Businesses
In 2017, Sen. Sullivan voted for the Tax Cuts and Jobs Act, which included across-the-board tax cuts for small businesses and middle class families, and a doubling of the child tax credit to support working families and small businesses, and spur economic growth. Without Congress’ action, those tax cuts and tax credit increases were due to expire this year, which would amount to a $4.5 trillion tax hike on all Americans. It’s also important to note, contrary to what some critics of the legislation have said, under the One Big Beautiful Bill Act of 2025, millionaires and billionaires will be paying the exact same marginal tax rates as they do currently. There is no tax cut for them.
The One Big Beautiful Bill Act of 2025:
- Avoids a massive $4.5 trillion tax increase on Americans by extending the 2017 tax cuts;
- Institutes a permanent $2,200 child tax credit and tax relief amounting to an estimated annual take-home pay increase of $7,600-$10,900 for a family of four;
- Expands tax credits to make child care more affordable for the thousands of working families in Alaska that are in need of quality, affordable child care:
- Specifically, this bill enhances the Child and Dependent Care Tax Credit, the only tax credit that specifically helps working parents offset the cost of child care. This provision builds on stand-alone legislation that Sen. Sullivan cosponsored;
- Improves the Employer-Provided Child Care Credit which supports businesses that want to help locate or provide child care for employees;
- Expands the Dependent Care Assistance Plan which creates flexible spending accounts that allow working parents to set aside pre-tax dollars to pay for child care expenses;
- Eliminates taxes on tips and overtime for millions of workers, and taxes on auto loan interest for new American-made vehicles;
- Expands tax relief for small businesses, which constitute 99.1 percent of businesses in Alaska, benefiting the backbone of Alaska’s economy; and
- Makes permanent the opportunity zone, low-income housing, and new markets tax credits—key incentives for economic development and affordable housing, and adds greater emphasis on economically disadvantaged and rural areas.
“I have always fought to ensure hard-working Alaskans are able to keep more of their paycheck, and our small businesses are able to grow and hire more workers,” said Sen. Sullivan. “With this legislation, we are preserving the historic tax relief delivered for Alaskans in the 2017 Tax Cuts and Jobs Act and providing new relief for our workers and small businesses. Specifically, this bill prevents an average $2,380 tax hike on every Alaskan and a 25 percent tax increase on over 58,000 of Alaska’s small businesses. For Alaska’s working families, the bill permanently boosts the per-child tax credit to $2,200, preserves the doubling of the standard deduction we secured in 2017, and expands tax credits for paid family leave and child care—which I cosponsored in stand-alone legislation. The bill also eliminates taxes on tips, benefiting roughly one-in-ten Alaskans who work in our service and leisure industries. In sum, this bill will deliver a take-home pay increase of up to $10,900 for a family of four.
“The historic tax relief we are delivering in this bill, coupled with the legislation’s unprecedented provisions to unleash Alaska natural resources—working in concert with President Trump’s Day One, Alaska-specific executive order—bring together all of the elements needed to achieve strong growth in Alaska’s private sector economy. Importantly, that will mean more good-paying jobs for more of Alaska’s families.”
- Making the Largest Investment in U.S. Coast Guard History
As Chairman of the Senate Commerce Subcommittee on the Coast Guard, Sen. Sullivan has consistently championed robust investments in our Coast Guard. Sen. Sullivan’s strong advocacy in the negotiations of the One Big Beautiful Bill of Act 2025 resulted in nearly $25 billion for fiscal year 2026 to the U.S. Coast Guard, including:
- 16 new icebreakers—three Polar Security Cutters (heavy icebreakers), three Arctic Security Cutters (medium polar icebreakers), and 10 light and medium icebreaking cutters;
- 22 new cutters—nine Offshore Patrol Cutters, 10 Fast Response Cutters, and three Waterways Commerce Cutters;
- More than 40 new helicopters, six new C-130J aircraft, three new river cutters, and new maritime surveillance equipment (Many of these new Coast Guard aviation and ship assets will be coming to Alaska);
- $300 million for the homeporting of the Juneau icebreaker, the Storis; and
- $4.379 billion to repair docks, hangars, and shore facilities and replace aging infrastructure, funds that will help address the Coast Guard’s nationwide infrastructure backlog, as found in communities like Sitka, Seward, Kodiak and St. Paul.
“This historic investment of nearly $25 billion for the U.S. Coast Guard—the largest investment in Coast Guard history—is a game-changer for the men and women who protect our nation’s oceans and maritime communities, especially in Alaska,” Sen. Sullivan said. “With funding for 17 new icebreakers, 21 cutters, dozens of aircraft, and billions to modernize docks and shore facilities–particularly in Alaska, we’re strengthening America’s maritime presence in the Arctic and along our vast coastline. I’ve been working for years to get an icebreaker homeported in Alaska. This is the next critical step: $300 million to support icebreaker homeporting in Juneau—cementing Alaska’s role as the nation’s Arctic operations hub. This investment will create good-paying jobs throughout Southeast Alaska, bolster our national security, and ensure our Coast Guard has the tools it needs to protect our waters and our communities for decades to come.”
- Securing the Border and Fighting Fentanyl
Senator Sullivan has long advocated for stronger policies to secure the nation’s southern border, highlighting the negative impacts of President Biden’s four years of open border policies on all states, including those that are thousands of miles away, like Alaska. For two years in a row, Alaska experienced the largest annual increase in the rate of drug overdose deaths in the country, driven in large part by the flow of fentanyl across the porous border. In recognition of the havoc this crisis has wrought on Alaska’s communities, the Senator last year spearheaded the launch of a statewide “One Pill Can Kill” initiative to educate Alaskans about the dangers of the drug and raise awareness about the resources available for treatment, prevention and reporting criminal activity.
This legislation provides billions of dollars for our border security, funding and personnel to the immigration court system, materials and manpower to build the southern border wall, funding for Border Patrol and fleet vehicles, enhanced and upgraded Border Patrol technology, and additional law enforcement funding, including for DHS, DOJ, ICE, Secret Service, and federal courts.
The One Big Beautiful Bill Act of 2025 provides:
- $46 billion for a southern border wall, $8 billion for Border Patrol and fleet vehicles, $6 billion for border patrol technology;
- $47.8 billion in additional law enforcement funding, including for DHS, DOJ, ICE, and Secret Service, and federal courts and detention facilities; and
- $1.25 billion in funding for the immigration court system.
“This Homeland Security package is a critical step toward securing our borders and stopping the flow of deadly fentanyl into our country, a crisis that is even impacting Alaska,” Sen. Sullivan said. “Alaska’s communities, from our biggest cities to rural villages, have dealt with the deadly consequences of a porous southern border. For years, fentanyl poured into our state, surging overdose deaths by more than 40% between 2022 and 2023, and taking the lives of far too many young people. Thankfully, since President Trump came into office, illegal border crossings have dropped by 99%. These provisions will continue this enforcement of our border and stop this scourge of illegal aliens, drug cartels, and fentanyl from devastating communities across the country.”
- Building Up Our Alaska-based Military
Taking care of our troops and rebuilding our military guided by a policy of “Peace Through Strength” have been top priorities of Senator Sullivan since he joined the Senate Armed Services Committee. The strong military provisions in this bill include several major benefits for Alaska.
The bill allocates $9 billion to improve the quality of life for service members—enhancing housing, child care, and health care services at Alaska’s many military bases—building on the historic 14.5 percent military pay raise for junior enlisted warfighters that Senator Sullivan helped secure in last year’s National Defense Authorization Act. It also provides $115 million to support the exploration and development of existing Arctic infrastructure, like the critical Adak Naval Air Station in Alaska’s Aleutian Islands and invests $9 billion in air superiority efforts that will help sustain aircraft and operations at Eielson Air Force Base and Joint Base Elmendorf-Richardson (JBER).
The bill also invests heavily in missile defense systems—with $1.975 billion that could enhance radar sites like the Long Range Discrimination Radar at Clear Space Force Station, the COBRA DANE radar on Shemya, and other installations across the state. Alaska may also benefit from $800 million for next-generation interceptors at Fort Greely, and $500 million for national security space launch infrastructure that could include the Kodiak Pacific Spaceport. These investments are part of President Trump’s $25 billion “Golden Dome for America” initiative, which accelerates the development of a layered missile defense system to protect the homeland—cementing Alaska’s position at the forefront of national security. Senator Sullivan’s GOLDEN DOME Act would further add to the money appropriated by the One Big, Beautiful Bill Act to protect Alaska and the nation.
Additionally, Alaska stands to gain from the $12 billion Pacific Deterrence Initiative, which includes expanded military exercises involving Alaska Command, and from the $29 billion shipbuilding provision, which will likely strengthen U.S. Navy maritime presence to help safeguard Alaska’s waters.
The One Big Beautiful Bill Act of 2025 includes:
- A $25 billion down payment on President Trump’s “Golden Dome for America” initiative to build a layered missile defense system, positioning Alaska as the central pillar;
- $1.975 billion for improved missile defense radars, potentially benefiting LRDR at Clear Space Force Station, COBRA DANE on Shemya Island, and other Alaska radar sites;
- $800 million for next-generation interceptors going to Fort Greely;
- $500 million for space launch infrastructure, which could include the Kodiak Pacific Spaceport;
- $115 million for the exploration and development of existing Arctic infrastructure, like the shuttered Adak Naval Air Station in Alaska’s Aleutian Islands;
- $9 billion to improve military quality of life—including housing, childcare, and healthcare at Alaska military bases;
- $9 billion for air superiority, supporting aircraft operations at Eielson Air Force Base and JBER;
- $12 billion for the Pacific Deterrence Initiative, expanding military exercises involving Alaska Command; and
- $29 billion for shipbuilding.
“Taking care of our troops and achieving ‘Peace Through Strength’ are two of my top priorities. This legislation includes funding for Alaska’s air defense superiority, readiness missions, maritime fleet, as well as an investment in better housing, child care, and health care at bases across Alaska,” said Sen. Sullivan. “The escalating missile threats from the Iranian regime—and the rapidly advancing capabilities of Russia and China—make clear why we must build a robust, modernized missile defense system to protect the entire country. That’s exactly what the Golden Dome initiative will do. With President Trump’s leadership, a $25 billion down payment in this legislation, and the Golden Dome Act I introduced with my colleagues to cement this vision in law, we now have all three pillars of effective policy: presidential backing, appropriated funding, and authorizing legislation. This initiative will deploy space-based sensors and next-generation interceptors, and significantly enhance our all-domain awareness. Alaska will remain the cornerstone of America’s missile defense, and I look forward to advancing this historic effort to secure our homeland.”
- Upgrading Alaska’s Aviation Safety
Alaska faces an aviation accident rate 2.35 times higher than the national average, and this legislation delivers major, long-overdue investments to address that challenge head-on. The Alaska-specific aviation safety provisions in this legislation include the installation of Weather Observing Systems and weather camera sites, as well as a $40 million carve out for the FAA Alaska Aviation Safety Initiative. These provisions are in addition to a federal overhaul of aviation safety announced by President Trump earlier this year that includes the addition of 174 new weather stations specifically for Alaska.
Included in the One Big Beautiful Bill Act:
- $2.5 billion for nationwide air traffic control reform and upgrades;
- $80 million to install not less than 50 Automated Weather Observing Systems (AWOS), not less than 60 Visual Weather Observing Systems (VWOS), not less than 64 weather camera sites, and weather stations; and
- $40 million to carry out aviation safety projects in the FAA Alaska Aviation Safety Initiative, other than the activities funded from the set aside for weather observation systems.
“With dozens of communities off the road system and wholly reliant on aviation, and an air traffic control system responsible for the heavily-trafficked aviation routes between North America and Asia, no state is more aware of our country’s aviation safety challenges than Alaska,” said Sen. Sullivan. “This bill includes historic critical upgrades to Alaska’s aviation safety equipment and funding for the FAA Alaska Aviation Safety Initiative. These weather observing systems and camera sites will provide real-time weather data and visual confirmation in remote areas with harsh, rapidly changing conditions, ensuring that Alaska’s pilots have the technology they need to fly as safely as possible.”
- Strengthening Alaska’s Health Care
The One Big Beautiful Bill Act of 2025 does not touch Medicare or Social Security despite false ads running in Alaska saying the contrary. The major Medicaid reform in this bill centers around limitations and reductions of states’ use of provider taxes and state-directed payments to enhance their federal Medicaid payments. Many observers view the use of provider taxes and state-directed payments as a scheme to enhance a state’s share of federal Medicaid dollars. Because Alaska is the only state in the country that doesn’t use provider taxes or state-directed payments, and never has, its Medicaid program and federal funds that the state receives are not impacted by the provider tax reforms in the bill.
Senator Sullivan has been working for years on legislation to increase Alaska’s Federal Medical Assistance Percentage (FMAP) by 25 percent and Hawaii’s FMAP by 15 percent to better reflect the high cost of living and high cost of health care delivery in both states. This FMAP provision was included in the original budget reconciliation bill with White House and Senate Republican support. The Congressional Budget Office (CBO) estimated that this provision would have generated approximately an additional $180 million in increased annual Medicaid dollars for Alaska.
However, during the final stages of the budget reconciliation debate, Senate Minority Leader Chuck Schumer and Senate Democrats challenged Sen. Sullivan’s FMAP provision with the intent to strip it out of the budget reconciliation bill during a series of “Byrd baths.” Following this review, the Senate Parliamentarian advised that the provision violated the requirements of the Byrd Rule, resulting in its removal from the bill and costing Alaska potentially millions of dollars in additional annual Medicaid funding.
In response, Senator Sullivan pivoted and pursued an alternative solution. To address Alaska’s limited health care infrastructure, he successfully negotiated a $25 billion increase for the Rural Health Transformation Fund in the budget reconciliation bill, bringing it to $50 billion. Senator Sullivan helped shape the formula for this fund to allocate $100 million annually for Alaska for five years. He is confident that additional funding from this fund to Alaska will exceed another $100 million.
In total, this fund is anticipated to provide over $200 million annually for five years to help expand access and improve health care across Alaska, support providers in remote communities, and reduce the state’s Medicaid application backlog through the Alaska Division of Public Assistance.
The One Big Beautiful Bill Act of 2025:
- Creates a $50 billion fund over five years to help states modernize and stabilize rural health care, improve outcomes, and keep standalone hospitals open, of which Alaska will likely receive at least $200 million annually over five years;
- Institutes a 20-hour per week work requirement for able-bodied individuals to utilize Medicaid if they do not have children 14 years of age or younger (one-third less than the work requirements established by the bipartisan welfare reform in the 1990s under the Clinton administration);
- Allows states to delay implementation of Medicaid work requirements if showing “good faith” effort to create work requirement processes through 2028;
- Requires identity verification for ACA special enrollment to stop fraud targeting Alaska Native benefits.
“For months, I have worked relentlessly on every aspect of this reconciliation bill to make sure Alaska isn’t just included, but prioritized—including our health care and nutrition programs,” said Sen. Sullivan. “My team and I also fought hard to secure a $50 billion fund to help states, like Alaska, modernize health systems, stabilize rural providers, improve patient outcomes, and keep standalone hospitals open. Thanks to this provision and commitments I received from the Trump administration, I am confident that Alaska will receive over $200 million a year—for five years—to empower our state leaders to maintain coverage for vulnerable Alaskans and shore up our state’s social safety net.
“Additionally, the Medicaid provisions in this bill will make this critical safety net program stronger, more accountable, and more sustainable—especially for Alaskans. Our goal is simple: maintain strong safety nets, reduce barriers to care, and grow good-paying jobs across Alaska so more people can thrive and get covered through the private sector.
“I do support Medicaid work requirements for those who are able, but we made sure to include commonsense, tailored work exemptions, including for Alaska Native people, those who live in places with low employment opportunities, pregnant women, and people with mental health and substance use disorders.
“Many of Alaska’s hospitals operate on the financial edge while continuing to serve as the backbone of care in remote regions. They are critical to Alaska’s health care system, and this legislation—the result of months of work from me and my team—ensures our hospitals will receive the Alaska-specific plus-ups and protections they need to continue serving our communities.”
- Protecting Alaska’s Most Vulnerable Communities
Senator Sullivan worked to ensure the legislation included provisions directly aimed at protecting Alaska’s most vulnerable communities, especially seniors and those facing financial hardship. For seniors and elder Alaskans, the bill provides a $12,000 tax deduction to reduce Social Security taxes, with estimated average savings of between $9,000–$17,500 for seniors ages 60 and up. The legislation also allows telehealth copays to be covered by insurance outside of high-deductible thresholds—making virtual care more affordable for rural and senior populations, and exempts seniors over 65 from Medicaid and Supplemental Nutrition Assistance Program (SNAP) work requirements.
The One Big Beautiful Bill Act of 2025 also expands home-and community-based services for individuals with disabilities, repeals harmful Biden-era nursing home staffing mandates, and includes a 2.5 percent Medicare reimbursement increase for FY 2026—known as the “doc fix”—to ensure that seniors utilizing Medicare continue to have access to care.
The One Big Beautiful Bill Act of 2025:
- Provides a $12,000 tax deduction for seniors 65 and older to reduce Social Security taxes and help retirees keep more of their income;
- Maintains the existing 100 percent federal match for Alaska Native and American Indian people accessing Medicaid, and exempts them entirely from Medicaid work requirements;
- Estimates tax relief savings for seniors age 60 and older between $9,000-$17,500;
- Exempts seniors over 65 from Medicaid and SNAP work requirements;
- Provides additional time for the State of Alaska to resolve its SNAP distribution error rate and carves out SNAP work requirement exemptions for areas with high unemployment rates;
- Delays implementation of new SNAP work requirements if they are showing “good faith” effort through 2028;
- Permanently extends key tax-free savings provisions for Achieving a Better Life Experience (ABLE) accounts, allowing individuals with disabilities to save for their future without losing access to Medicaid and Social Security;
- Allows telehealth copays to be covered by insurance outside of overall health insurance deductibles, making it easier for seniors and Alaskans in rural areas to use telehealth; and
- Allows telehealth copays to be covered by insurance outside of overall health insurance deductibles, making it easier for seniors and Alaskans in rural areas to use telehealth;
- Expands home- and community-based care for people with disabilities;
- Includes a 2.5 percent Medicare reimbursement rate increase for FY 2026—known as the “doc fix”—to ensure that seniors utilizing Medicare continue to have access to care; and
- Repeals Biden-era nursing home staffing mandates that threatened to close Alaska nursing home facilities, a top priority of rural health care providers.
“My team and I worked hard to ensure the One Big Beautiful Bill protects Alaska’s most vulnerable communities, especially our seniors and those struggling to make ends meet,” said Sen. Sullivan. “We secured provisions that will provide real relief, like a $12,000 tax deduction that helps older Alaskans keep more of their hard-earned retirement income, and expanded telehealth access that makes care more affordable and accessible in our rural communities. We also were able to exempt seniors from burdensome work requirements and repeal a disastrous Biden-era federal nursing home mandate that threatened to close facilities across our state.
“Contrary to some of the fear-mongering by critics, this bill makes no changes to Medicare or Social Security. Programs like Medicare, Medicaid, and SNAP were created to protect our most vulnerable populations, and this legislation helps ensure that these social safety net programs are there for Americans and Alaskans who need them.
“My team and I also secured flexibility for implementing both the new Medicaid and Supplemental Nutrition Assistance Program (SNAP) work requirements for Alaska, including exemptions for all Alaska Native people, parents or guardians of children 14 and under, caregivers for elders and adults with disabilities, individuals who are medically frail or are dealing with a substance use disorder, veterans, pregnant women, and areas of high unemployment. With regard to SNAP, I helped secure a delay for Alaska to implement these work requirements until 2029 based on a good faith effort. These flexibilities will be crucial to ensuring our state’s most vulnerable continue to receive benefits while allowing the State breathing room to adjust to the new requirements under the bill.
“This bill provides good governance cost-sharing measures to ensure that states properly administer their programs and get SNAP benefits to people who need it most. However, the State of Alaska is working on modernizing their system to administer their program and will need extra time to complete the overhaul. I pushed intensely to secure up to a two-year delay before the cost-sharing measures come into play. This crucial delay will provide the State the time it needs to overhaul their system and improve their program—ultimately ensuring that people who need SNAP the most, are the ones who receive it.”
IX. Achieving Historic Savings for Our Children’s Future
Sen. Sullivan shares the serious concern many Alaskans have about the size and scope of federal spending, especially the risks posed by the country’s $36 trillion debt. According to the nonpartisan Congressional Budget Office (CBO), the One Big Beautiful Bill Act of 2025 represents one of the largest federal spending reductions in American history, roughly $1.6 trillion, and will reduce the federal budget deficit by $508 billion over ten years. According to the White House Council of Economic Advisers, the legislation will result in the debt-to-GDP ratio falling to between 88 and 99 percent, instead of rising to 117 percent without the bill.
“Our national debt of over $36 trillion has reached dangerous, unsustainable levels. Last year, we paid out more in interest on this debt—upwards of $950 billion—than we did to fund our military at about $870 billion,” said Sen. Sullivan. “When you look at history, great powers begin to fail when they hit this precarious inflection point—spending more in interest on the debt than they do to protect their own nation. These debt and spending levels also drive high inflation rates, as we’ve seen over the past few years, which remain the top concern of Alaskan families—the high cost of living. This bill includes one of largest spending reductions in history—$1.6 trillion, and will reduce the deficit by $508 billion over ten years. The bill accomplishes these reductions by eliminating waste, fraud, and abuse—not by cutting essential services.”
X. Fighting Back Against Senate Democrats and Minority Leader Schumer’s Relentless Attempts to Shut Down Alaska’s Economy and Harm Our Citizens
In the budget reconciliation process, the parliamentarian of the Senate only rules on provisions of the bill when they are challenged by Democrat or Republican party leaders, to see if those provisions violate the so-called “Byrd Rule,” which dictates that a provision in reconciliation legislation must be principally focused on the budget, spending and taxes. The Byrd rule and the parliamentarian’s role are not self-executing, meaning, the parliamentarian does not scrub budget reconciliation bills looking for violations of the Byrd rule. She only looks into these issues if those issues are challenged by the Republican or Democratic Senate leaders.
In this bill, Democrats in the Senate, led by Minority Leader Chuck Schumer, challenged nearly every single provision in the bill that would benefit Alaska. The most egregious was Sen. Sullivan’s provision, which he’s worked on for years, to increase the federal match for Medicaid in Alaska. Sen. Sullivan secured the provision in the bill, which was supported by all Senate Republicans and the White House, and would have provided Alaska with hundreds of millions of dollars more a year in federal Medicaid dollars.
The irony of this outcome is particularly strong given that far-left-wing Democrat-affiliated groups have been falsely attacking Senator Sullivan for weeks on cutting Medicaid. The only people objectively and factually trying to cut Medicaid for Alaskans are Chuck Schumer and Senate Democrats, who successfully did so when they stripped out Sen. Sullivan’s FMAP provision for Alaska that was already in the budget reconciliation bill.
Other provisions that would dramatically help Alaska, but were challenged by Sen. Schumer and the Senate Democratic leadership to strip out of the budget reconciliation bill, include:
- ANWR leases;
- NPR-A leases;
- Cook Inlet leases;
- Increased funding for rural Alaska hospitals;
- Coast Guard funding for Alaska, including facilities for the new icebreaker home-ported in Juneau;
- Funding for potential Arctic military bases;
- Border security;
- Charitable deductions for Alaska whaling communities; and
- Greater flexibility for SNAP requirements.
“Here is an undeniable fact: The only people who are advocating cutting Medicaid for Alaskans are Chuck Schumer and the Senate Democrats,” said Sen. Sullivan. “Worse, this is just one of a number of positive provisions for Alaska that Senate Democrats’ fought to strip out of the budget reconciliation bill. This is consistent with the long pattern of National Democrats’ attempts, for decades, to lock up our state, shut down our economy, and hurt our working families.”
