The U.S. Department of Energy (DOE) has announced its intent to provide up to $150 million in Defense Production Act (DPA) funding for the Alaska Energy Authority’s Beluga-Healy Transmission Project. The project would develop a second high-voltage connection between Southcentral and Interior Alaska to support grid infrastructure considered essential to national defense.

The project combines up to $150 million in DPA funding with $268 million in non-federal funding, for a planned total investment of $418 million. Approximately 223 miles of new transmission line would connect Beluga and Healy.

Once completed, the transmission line would provide grid operators with an additional pathway to move power between Southcentral Alaska’s population centers and major military installations. The project is expected to improve grid reliability and lower electricity costs for approximately 75% of Alaska’s population.

Approximately $1 billion in federal funding has been appropriated for energy-related projects deemed critical to national security. Presidential Determination No. 2026-10 identifies transmission lines and conductors, substations, and power-control and protection equipment as essential to national defense.

“Supporting improvements to Alaska’s transmission infrastructure with Defense Production Act funds reflects the Trump Administration’s commitment to strengthening national security, improving grid reliability, and lowering electricity costs,” U.S. Secretary of Energy Chris Wright said. “Thanks to Senator Sullivan, I received an extensive briefing from the Alaska Energy Authority during my recent visit to Anchorage in August. This meeting, combined with briefings from Alaska Command, confirmed the need to support an expansion of Alaska’s energy infrastructure. 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.”

“Alaska’s weather is unforgiving, and its grid needs another way to keep power moving,” said Office of Electricity Assistant Secretary Katie Jereza. “Beluga-Healy will provide that critical second route, helping protect communities from disruptions and meet growing demand.”

The project has a preliminary planning estimate of approximately $418 million. The DOE said the project is part of the administration’s focus on developing critical energy infrastructure while protecting taxpayer dollars and ratepayers.