Social Work Interstate Licensure Compact Becomes Law!

Good news for Alaska social workers and other licensed health professionals! After passing both the House and Senate earlier this year, HB 110 (Rep. Gray) became law on June 23, 2026, without Governor Dunleavy's signature. Under Alaska law, the governor may sign, veto, or allow legislation to become law without a signature within 20 working days.

The new law authorizes Alaska to join the Social Work Interstate Licensure Compact, allowing licensed social workers to practice in other compact member states. The compact is expected to improve access to behavioral health services, increase workforce mobility, and support continuity of care for clients who relocate or travel. Although originally introduced to establish the Social Work Compact, the bill was amended to also authorize participation in interstate licensure compacts for qualified physicians, EMS personnel, physician assistants, and psychologists.

Click here to listen to a Compact update message from NASW-AK Executive Director, Duane Breijak.

End of the Term Legislative Recap

New Protections for Foster Youth in Psychiatric Facilities

In response to reports of foster youth remaining in psychiatric facilities for extended periods without timely judicial review, HB 36 (Rep. Gray) became law on June 22, 2026, without the governor's signature.

The legislation requires a court hearing within seven days of a youth's admission to a psychiatric facility, replacing the previous requirement for judicial review within 30 days. The change is intended to strengthen oversight and ensure timely review of placements involving foster youth.

More information about HB 36 is available here.

"Baby Box" Legislation Falls Short
Despite receiving bipartisan support and passing both legislative chambers, SB 9 (Sen. Myers) failed to reach the governor's desk because of a manifest error—a procedural issue, often clerical in nature, that prevented final transmission of the bill.

Alaska's Safe Haven law, enacted in 2008, allows parents to safely surrender infants to designated professionals without fear of prosecution. SB 9 would have expanded the law to permit infant surrender through secure safety devices, commonly known as "baby boxes," located at hospitals, police departments, health clinics, and other approved locations. Supporters argued the legislation would provide additional anonymity for parents while increasing opportunities for infant safety and prompt medical care.

Mental Health Curriculum Bill Veto Sustained
SB 41 (Sen. Gray-Jackson) would have required the Alaska Department of Education, in consultation with relevant stakeholders, to develop a K-12 mental health curriculum for use in school districts statewide, similar to existing physical health education requirements.

The proposal was introduced as Alaska continues to face significant youth mental health challenges and sought to equip students with the knowledge and resources to recognize mental health concerns and seek appropriate support.

Governor Dunleavy vetoed the bill on June 19. Although the Legislature attempted to override the veto, the effort failed on a 38-22 vote, falling short of the 40 votes required for an override.

Budget Update

This budget update comes from our partners at The Mohr Company

Governor Dunleavy signed the FY2027 operating and capital budgets at the end of June and returned them with approximately $90 million in line-item vetoes. He preserved the statutory Base Student Allocation and core K-12 formula funding while trimming discretionary additions approved by the Legislature. The vetoes came after the Legislature transmitted the bills on June 15.

The final operating budget spends roughly $1.4 billion less in Unrestricted General Funds than the Governor’s original proposal. Much of the reduction can be attributed to a steeply reduced PFD. The Governor’s proposed PFD came in at $3,650 per eligible Alaskan, at a cost north of $2.3 billion. Given that the PFD delta alone is in the $1.5–$1.67 billion range, the reduced dividend (plus the $200 energy relief instead of a full statutory payment) accounts for essentially all — or very nearly all — of the $1.4 billion reduction in UGF spending. The final budget funds a $1,000 Permanent Fund Dividend plus $200 per-person energy relief (combined cost ~$800 million), maintains the statutory BSA of $6,660 per adjusted average daily membership, and includes targeted restorations in health, corrections, and community assistance.

Detailed Veto Analysis and Program-Level Impacts

The Governor’s vetoes total nearly $90 million and primarily target discretionary expansions and rate increases. Key items include:

• $20 million for Community Assistance Payments — Reduces direct distributions to municipalities. Smaller communities may face tighter budgets for local services and operations.

• $6.4 million for early education workforce recruitment and retention — Impacts efforts to address shortages in child care and early learning programs, potentially slowing expansion and increasing turnover.

• $6.25 million to increase Medicaid reimbursement rates for in-home caregivers — Maintains existing rates for personal care attendants serving seniors and people with disabilities, which could affect provider participation and access to home-based care.

• $5 million to increase Medicaid reimbursement rates for direct support professionals — Affects rates for providers assisting individuals with intellectual, developmental, and physical disabilities, potentially constraining workforce stability and service capacity.

• $4.2 million for behavioral health grants — Reduces support for community mental health and substance use treatment providers, which may lead to scaled-back services or longer wait times in some areas.

• $3.7 million for Head Start grants (with $16.8 million remaining) — Partial reduction may require some programs to adjust enrollment or staffing while preserving the majority of funding.