Trump Administration Activates Defense Production Act to Fund Alaska Power Grid Expansion

U.S. Interior Secretary Doug Burgum discussed President Donald Trump’s executive order to construct the Alaska LNG pipeline, noting how the initiative strengthens energy supply chains for U.S. Pacific allies.

Vice President JD Vance announced on Monday a significant federal investment in Alaska’s power grid, allocating $150 million from the Defense Production Act to develop a new major transmission line.

He made the announcement alongside the Department of Energy and the Alaska Energy Authority, with officials stating the project will lower energy costs for roughly 75% of Alaska residents.

Officials said the Beluga-Healy Transmission Project will establish a second high-voltage link between south‑central and interior Alaska.

Trump’s ambitious energy strategy could prove advantageous as global oil and gas consumption rises.

Vice President JD Vance speaks during a Congressional Tribute to the late Sen. Lindsey Graham, R-S.C., in the Rotunda of the U.S. Capitol on July 28, 2026. (im Lo Scalzo-Pool/Getty Images / Getty Images)

Vance said, “Today we take another major step toward realizing our promise of energy dominance, which is why I am pleased to announce the Alaska Rail Belt Transmission Project, committing $400 million to expand the state’s power grid.”

He added, “Through this initiative, the Trump administration will construct over 200 miles of new transmission lines, reducing costs and enhancing grid reliability for about 75% of the state’s population.”

Senate Republicans advocate an overhaul to cut red tape and accelerate American energy projects.

A general view of the Brooks Range as seen from the Dalton Highway on May 10, 2024, in North Slope Borough, Alaska. (Lance King/Getty Images / Getty Images)

The DPA contributes $150 million in funding, supplementing the existing $268 million from non‑federal sources.

Energy Secretary Chris Wright thanked Alaska Senator Dan Sullivan, a Republican, for his role in facilitating the agreement on Tuesday.

Governor Mike Dunleavy warned that China is holding critical minerals hostage, adding that Alaska could help mitigate the threat.

Wright said in a statement, “This project will support both the ongoing U.S. military expansion in Alaska and mining and other resource development vital to national security.”

Energy Secretary Chris Wright attends a working lunch at the “Shield of the Americas” Summit at Trump National Doral in Miami, Florida, on March 7, 2026. (Rebecca Blackwell / POOL / AFP via Getty Images / Getty Images)

The Trump administration has invoked the Defense Production Act numerous times during both of President Trump’s terms.

Earlier this year, the administration used the act to compel an oil company to resume offshore operations off California that had been shut down, citing the need to mitigate oil‑supply disruptions and lessen dependence on foreign crude.

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