Gov. Dunleavy threatens second special session if Senate doesn't pass bill supporting Alaska LNG

Alex DeMarban, Anchorage Daily News on Jun 18, 2026

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ANCHORAGE, Alaska — Gov. Mike Dunleavy on Thursday upped the stakes in his bid to pass a multibillion-dollar tax break for the state's long-sought Alaska LNG megaproject, saying on social media that he'll call a second special session if senators can't come to an agreement.

The statement came as the Senate considers a bill that passed the House last week, and as the first special session on the topic ends Friday after 30 days.

"Progress is happening, but time is running out in this special session," Dunleavy said in a social media post. "While the House of Representatives completed their work and passed over a bill with tremendous support last week, the Senate has a little under two days to complete their work."

"If the Senate does run out of time by Friday midnight, I will issue a call for a second special session to give them more time to quickly complete the work," he said.

"My hope is we can get the work done and a bill passed that works to help move this large gas line project forward before midnight Friday," he said in the post. "If not, we will begin the process again Saturday with another special session."

Dunleavy in March introduced legislation to eliminate property taxes for the project. He proposed replacing those taxes with a much smaller tax based on gas volumes.

The project cost is estimated at $45 billion to $55 billion, though critics say it will be much higher.

The House's bill would implement that tax system for 30 years, but some senators have expressed concern that the state and local communities would receive insufficient revenue to support increased demand on roads, emergency services, schools and other services associated with the giant project.

Supporters say that Alaska LNG, even with the tax change, would still bring billions of dollars to the state and communities in other revenue, create thousands of jobs and provide a stable source of natural gas to Alaskans.

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