Alaska legislator revives push to sell state-owned Alaska Railroad
A Big Lake Republican has reintroduced a bill that would require the state of Alaska to sell the Alaska Railroad.
Rep. Kevin McCabe, R-Big Lake, introduced House Bill 120 on Feb. 26. If enacted, the bill requires Gov. Mike Dunleavy to issue 'a request for proposals to purchase the Alaska Railroad and all other assets of the Alaska Railroad Corporation' necessary to operate the railroad.
The purchaser would have to continue operating the railroad for a minimum of 50 years, and the final sale agreement would be subject to legislative approval.
Originally built and operated by the federal government, the Alaska Railroad was transferred to the state of Alaska in 1985, and it remains a state-owned corporation today.
Under HB 120, before the sale, the governor shall commission an appraisal of the railroad, and the sale cannot be less than the appraised value.
As a condition of the sale, the state would have to set aside a portion of its sale proceeds for 'the construction of new railroad spurs and rail lines to access resource-rich areas of the state.'
McCabe has been a regular supporter of plans to extend the Alaska Railroad to Port MacKenzie, an alternative to the Port of Anchorage that is located on Mat-Su land at the northern end of Cook Inlet.
HB 120 follows the introduction of House Bill 332 by former Rep. Jesse Sumner, R-Wasilla, in 2024.
That bill, heard by the House Transportation Committee, drew support from Alaskans who felt that the railroad isn't doing enough to support resource development in the state. The railroad itself opposed the bill.
Because the bill failed to advance past the transportation committee, it died when the 33rd Legislature ended.
No hearings have yet been set for HB 120.
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