DOT warns vetoes could jeopardize hundreds of millions in federal projects; committee hears Cascade Point timeline

Juneau — Department of Transportation officials warned the House Finance Committee on Jan. 26 that recent reappropriations and the governor’s vetoes could jeopardize hundreds of millions of dollars in federal transportation funds and disrupt the summer construction season.

Dom Pinone, director of program management administration at DOT, said legislative staff requested updated CASR balances and DOT provided new balances showing that some reappropriated funds had been incorporated into project delivery plans and used to meet anticipated federal match. "We provided updated balances, and then provided a letter advising that those match balances were needed for August redistribution," Pinone said, describing efforts to align balances with project schedules. Pinone and Commissioner Ryan Anderson presented a Cascade Point timeline showing $4,500,000 had already been spent on design and feasibility work before reappropriations.

Commissioner Ryan Anderson told lawmakers that the administration vetoed certain reappropriations because it believed some of the balances the legislature intended to reuse were already obligated and that using them for other state priorities could leave the state unable to meet federal-match obligations. Anderson said DOT projects currently have sufficient match to continue through July 1, but projects that are certified and advertised after that date could be jeopardized. "We have the match to get through July 1," Anderson said. "After July 1 is when we believe that most of the match will be used up." DOT staff estimated that $400,000,000–$500,000,000 in federal projects could be affected beyond that point, depending on certification and advertising schedules.

Legislators pushed back, asking whether agencies had been contacted for updated contract or obligation information before the legislature moved reappropriations. Pinone said DOT provided updated balances when asked by legislative finance and that some other projects were outside DOT’s appropriations so he could not speak to them. Committee members expressed concern about contractual obligations: DOT acknowledged that pulling funding after contracts are in place could constitute a breach and harm the state's contracting reputation, and said standard contract language and encumbrances usually ensure funds are available before award.

DOT said it will continue to advertise and certify projects as possible, and the administration signaled it will seek unrestricted general funds in supplemental requests to meet critical match obligations. The committee scheduled follow-up hearings and industry testimony for the next day to further probe contractor and industry concerns.

Provenance: committee hearing testimony and DOT slides presented Jan. 26, 2026.