Alaska Seeks Higher Federal Funding for Western Storm Response

Governor appeals FEMA's denial of 100% cost coverage for initial 90-day recovery efforts

Jan. 30, 2026 at 9:31pm

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The federal government has denied Alaska's request to cover all initial expenses associated with the disaster response effort following a catastrophic Western Alaska storm last fall. Governor Mike Dunleavy is appealing the decision, revising his request for FEMA to pay 90% of the cost instead of the typical 75% federal share during the initial 90-day period.

Why it matters

The storm caused significant damage in the Yukon-Kuskokwim Delta region, leaving one person dead and two missing. The initial response was extremely costly and complex, involving extensive air operations. Alaska argues its limited tax base and high costs of operating in remote areas warrant the higher federal cost share to avoid cuts to essential local services and recovery efforts.

The details

In early October, the remnants of Typhoon Halong inundated numerous communities and destroyed parts of the Yup'ik villages of Kipnuk and Kwigillingok. After the storm, Dunleavy asked FEMA to cover 100% of costs incurred during the initial 90-day period, but FEMA denied the request. Dunleavy is now appealing for a 90% federal cost share instead of the typical 75%. The state has already incurred $20 million in expenses for debris removal and the largest mass airlift evacuation in Alaska history, and expects $12.5 million more for shelter and evacuee support in the first three months.

  • The storm occurred in early October 2025.
  • Dunleavy made the initial 100% cost share request to FEMA in October 2025.
  • FEMA denied the request in a letter dated December 20, 2025.
  • Dunleavy appealed the decision in a letter dated January 16, 2026.
  • A federal disaster declaration for the region was approved on October 22, 2025.

The players

Mike Dunleavy

The Governor of Alaska who appealed FEMA's denial of 100% cost coverage for the initial disaster response.

FEMA

The Federal Emergency Management Agency that denied Alaska's request for 100% cost coverage and is considering the state's appeal for a 90% federal share.

Donald Trump

The former U.S. President who approved a $25 million federal disaster declaration for the Western Alaska region in October 2025.

Lisa Murkowski

A U.S. Senator from Alaska who urged the Trump administration to authorize the 100% cost share.

Dan Sullivan

A U.S. Senator from Alaska who urged the Trump administration to authorize the 100% cost share.

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What they’re saying

“This limited, focused adjustment will allow Alaska and its partners to maintain essential public services, manage an extraordinarily complex and winter-constrained housing and lifeline mission, and continue investing State, local, and tribal resources into mitigation and stabilization. It represents not an expansion of government, but a targeted use of Federal authority to back a State that has acted decisively.”

— Mike Dunleavy, Governor of Alaska

What’s next

The federal government will decide on Alaska's appeal to increase the cost share from 75% to 90% for the initial 90-day disaster response period.

The takeaway

This case highlights the challenges Alaska faces in securing adequate federal disaster assistance due to its unique geographic and economic factors, and the importance of state and federal cooperation in responding to catastrophic events in remote regions.