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Vice President JD Vance announced a major federal boost to Alaska’s power grid on Monday, granting $150 million in Defense Production Act (DPA) funding to develop a new major power line.
Vance announced the move in tandem with the Department of Energy and the Alaska Energy Authority, with officials saying the grid will reduce energy costs for 75% of Alaska residents.
The Beluga-Healy Transmission Project will create a second high-voltage connection between the south-central and interior of Alaska, officials say.
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“And today, we’re taking another major step towards making that promise of energy dominance a reality, which is why I am especially excited to announce the Alaska Rail Belt Transmission Project, which is going to devote $400 million to building out your state’s power grid,” Vance said.
“With this project, ladies and gentlemen, the Trump administration will help develop more than 200 miles of new transmission line, lowering costs and strengthening grid reliability for 75% of the population of this state,” he said.
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The DPA is providing $150 million in funding in addition to the existing $268 million in non-federal funding.
Energy Secretary Chris Wright thanked Alaska Sen. Dan Sullivan, a Republican, for his efforts to facilitate the deal on Tuesday.
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“This project will not only support the major U.S. military expansion currently underway in Alaska, but also mining and other resource development critical to our national security,” Wright said in a statement.
President Donald Trump’s administration has made many uses of the DPA during both Trump’s first and second terms.
Earlier this year, the administration invoked the act to order an oil company to restart shuttered offshore operations in California, saying the move was necessary to address oil supply disruption risks and reduce reliance on foreign crude.
