2025 Legislative Report

AARP Alaska

by Marge Stoneking, Associate State Director for Advocacy

The 2025 legislative session in Juneau opened with optimism, as both chambers were led by bipartisan majority caucuses committed to shared priorities, including a balanced budget, sustainable education funding, long-term energy solutions, election reform, and public retirement systems. However, early momentum was dampened by the Spring Revenue Forecast, which introduced financial uncertainty by way of reduced oil prices and decreased oil tax revenue projections. Concerns over federal funding and the impact of market volatility further complicated the path forward, casting a shadow over legislative progress.

The House faced challenges in reaching consensus on a balanced budget, having committed to a 25/75 split of the annual 5% Percent of Market Value (POMV) draw from the Permanent Fund Earnings Reserve, resulting in an estimated $1,400 Permanent Fund Dividend (PFD) amount. However, their plan—which included select departmental increases and prioritized education funding—led to a deficit, which they addressed through an unallocated cut left to the governor’s discretion. Meanwhile, the Senate remained firm on strictly limiting budget increases outside of education and opted for a smaller PFD, securing a modest surplus. The Conference Committee, chaired by Rep. Andy Josephson and including Reps. Johnson, and Sen. Schrage alongside Sens. Hoffman, Kauffman, and Stedman, swiftly reconciled differences by agreeing to a $1,000 PFD while reducing or cutting many of the proposed line-item increases resulting in a small surplus.

AARP is deeply appreciative that Senior Community Grants, our top budget priority, received one of the few funding increases in the Legislature’s final passed budget. This past winter the Alaska Commission on Aging conducted an informal survey of senior centers, which deliver most non-Medicaid senior services funded through these grants. Findings revealed that food costs have surged more than 25%. Three-quarters of senior centers face critical staffing shortages, and nearly all (90%) are experiencing severe funding gaps.

In collaboration with the Alaska Commission on Aging and the AGENet senior services provider network, AARP advocated to ultimately secure a $2.5 million increase for senior community-based grants in the Legislature’s final passed budget. This funding would stabilize senior centers, ensuring continued operations, including essential meals and services that help older adults maintain independence at home. The budget is now in the hands of the governor. He has line-item veto authority with a deadline of June 19. Governor Dunleavy vetoed the senior community grants passed by the Legislature last year, so we are advocating for him to maintain this critical funding.

With the session dominated by budget and public education negotiations and debate, movement on other bills lagged. The Legislature passed 32 of the 431 bills filed, a passage rate of 7% somewhat lower than other first-year legislative session. Notably, the House passed the House Finance public employee retirement bill (HB78) and the Senate passed their Senate Rules Committee omnibus election reform bill (SB64), but the clock wound down before the other chamber finished their committee process.

AARP has made public and private-sector retirement legislation a top priority, recognizing that increased savings empower older Alaskans to maintain independence and avoid reliance on public assistance. For employers, retirement readiness enhances workforce stability.

HB78 Pensions for Public Service, sponsored by the House Finance Committee aims to provide public workers with a modest, stable, lifetime retirement benefit in exchange for public service while ensuring costs remain manageable for the state. With public workers earning 14% less than their private-sector counterparts on average, a defined benefit pension would bridge the wage gap over time, making state employment more attractive. Without such a program, Alaska struggles to hire and retain workers, weakening public services and access to benefits. HB78 has cleared the House and is now in the Senate Labor and Commerce Committee for review in the next legislative session, with a Finance Committee referral to follow.

SB21 Alaska Work & Save, sponsored by Sen. Wielechowski, seeks to establish a public-private partnership that would offer an auto-enrollment IRA retirement program for employees of private businesses lacking existing retirement plans. Without a workplace retirement savings plan, most workers fail to save and are more likely to require public assistance in later years. SB21 has successfully passed its initial committee of referral—Labor and Commerce—and now awaits review in the Finance Committee in the next legislative session.

Two AARP-supported bills were passed this session:

SB39 Payday Loan Reform, sponsored by Sen. Dunbar, repeals an exemption in the Alaska Loan Act for payday loans, capping interest APR+ fees at 36%. It would also add an anti-evasion provision for internet lenders to protect Alaskans from predatory online lending. AARP supported this bill because recent data estimates that two out of every five high-cost loan borrowers nationwide are in households headed by someone age 50 or older. This multi-year bill was also supported by Alaska Public Interest Research Group, Alaska Children’s Trust, Center for Responsible Lending, YWCA, Food Bank of Alaska, and faith community partners.

SB50 Municipal Comprehensive Plans: Housing, sponsored by Sen. Dunbar, adds housing development plans to the options that certain local governments can include in their required Municipal Comprehensive plans. This provision will elevate the priority of housing development and better integrate city planning processes.

AARP has also taken a position on the following bills, which will carry into the 2026 session:

HB26 Community Transit Plan, sponsored by Rep. Mina, makes public and community transportation planning a responsibility of the Department of Transportation and Public Facilities in state statute, codifying the federal requirement in the Statewide Transportation Improvement Plan and improving community transit and rural alternative transportation planning. This is a priority of the Alaska Mobility Coalition, a group of community and rural transit providers.

HB48 Civil Legal Services Fund revises the funding formula for the Alaska Civil Legal Services Fund (ALSC) so that up to 25% of Court System filing fees can be appropriated by the Legislature to provide access to free civil legal aid for low-income Alaskans with critical legal needs. Legislation allowing the legislature to appropriate filing fees for Alaska Legal Services Corporation was first passed in 2018. It was originally set at 25% but lowered to 10% with the intention to reassess. Increased appropriations are necessary to fully support clients in need. Over 40% of ALSC's clients are 50 years or older – with 35% over age 60 –and one out of every two families that apply for aid are denied because for lack of funding.

HB110 Social Work Compact Bill, sponsored by Rep. Gray, authorizes Alaska to join the Social Work Licensure Compact to reduce provider licensing barriers in recruiting social workers to Alaska. Interstate health professional compacts play an important role in workforce stability and increasing patient access to quality healthcare while reducing regulatory burdens that prevent health professionals from providing care in multiple states.

Alaska is currently experiencing a critical and worsening shortage of social workers with high turnover rates and increasing demand. Social workers are trained to take a client’s full range of needs into consideration as they develop a support plan. In addition to long-term or health-related needs, social workers can help clients address issues like housing, addiction, unemployment, grief, poverty, and loneliness. Addressing these needs helps older adults age safely and comfortably in the community.

HB 173 Occupational Therapy Licensure Compact, sponsored by Rep. Jimmie, authorizes Alaska to join the 32-state Occupational Therapy Licensure Compact to reduce provider licensing barriers and improve access to care. Alaska’s only occupational therapy education program can only graduate 12-15 therapists a year and the need is currently 77 new therapists each year to support Alaska’s aging population. Occupational therapy is a critical support for people of all ages requiring assistance with activities of daily living. Occupational therapists can assess individual needs and provide therapy to help them improve, relearn, or maintain their ability to perform daily tasks.

SB64 Elections Reform is a Rules Committee omnibus elections reform bill. AARP has taken a support position on voter access improvements only. Those provisions include preventing special needs ballots from being rejected due to poll worker errors, removing the witness signature requirement on absentee by mail ballots, creating a ballot curing process, extending absentee by mail registration indefinitely if voters return their ballot at least every four years, providing secure ballot drop boxes, and providing return postage paid on absentee by mail ballots.

SB99 CPA as Private Professional Conservators, sponsored by Sen. Myers, adds an alternative path to becoming a licensed professional conservator, allowing certified public accounts to qualify using their existing credential.

SB103 CNA Training sponsored by Sen. Gray-Jackson increases the dementia care training requirement for certified nursing assistants.

SB124/HB121 Nursing Licensure Compact, from the governor, would authorize Alaska to join the Nurse Licensure Compact made up of 41 states and jurisdictions.

SB190 Uniform Act: Guardianship/Conservatorship, sponsored by Sen. Kiehl, brings Alaska's guardianship and conservatorship laws in line with the Uniform Guardianship, Conservatorship, and Other Protective Arrangements Act. This modernization enhances transparency and notice, refines court disclosures and reporting, and clearly defines the roles of family members, guardians ad litem, attorneys, and court visitors. Most significantly, SB190 adds a new “Other Protective Arrangements” section that empowers courts to craft orders that meet the specific needs of the respondent when considering a guardianship or conservatorship petition. This change will prioritize individual rights and preferences while ensuring courts retain the flexibility to act in a person’s best interests.

AARP invites you to help us make Alaska a place where we can all choose how we live as we age. A simple way to do so is to sign up as an e-activist.

AARP sends legislative updates to e-activists to keep them informed and to urge them to get in touch with lawmakers on key pieces of legislation. Join the team today to help ensure your fellow Alaskans have access to the care, information and services they need to lead healthy lives and remain in their homes and communities. Sign up to become an e-activist at aarp.org/getinvolved.