The United States and the municipality of Anchorage, Alaska, have reached a settlement agreement to conclude more than a decade-long lawsuit related to the modernization of the Don Young Port expansion project in Alaska. The municipality filed a lawsuit due to unsuccessful attempts made by the Maritime Administration to upgrade the port.
Under the terms of the agreement, the U.S. will pay Anchorage $180 million to resolve the lawsuit over allegations of deficiencies in the unfinished port expansion project. Although the amount is roughly half of what the municipality requested, officials noted that it is approximately equal to the cost of the original project. The Mayor of Anchorage called it a "huge victory".
In addition to the $180 million, the municipality also won an additional $11.3 million in a 2024 ruling, which will also be paid. State and federal authorities have also committed to providing an additional $86.5 million.
Anchorage and the federal government first agreed to begin improvements at the port in 2003, with subsequent agreements in 2011. However, the project was deemed faulty in 2010 when damage to installed pilings was discovered, leading to operational failures at the port. One subcontractor also claimed that they were not properly reimbursed for expenses.
The main cargo port in Alaska, operating in Anchorage, handles containers, liquid cargo, bulk cargo, as well as cruise ships. In 2025, it processed 5.5 million tons of fuel and cargo, about half of which was delivered to destinations outside of Anchorage — throughout the state, including Southeast Alaska.
"The fair and reasonable resolution reached allows both parties to put years of litigation behind them and focus on what matters most: the modernization and improvement of Alaska's port and reducing costs for consumers," said Acting Attorney General Todd Blanch.
The modernization project involves replacing two cargo docks, as well as the terminal used for unloading fuel and cement. It will replace the current corroding terminals with larger facilities that also meet seismic design standards for the earthquake-prone area.
After many years of delays and previous failures, the project is now expected to be completed in 2035. Construction of the new terminal began in late June and is scheduled for completion in 2029. Construction of the second terminal will begin in 2029 with a target completion date of 2032. The estimated cost of the project is now $2.75 billion.
