“Rural Infrastructure Accelerator”- Working for Rural and Remote Alaska
In this month’s blog, our Alaska-based partner organization — Alaska Municipal League — shares how innovative finance can help address some of the challenges unique to transportation infrastructure projects in Alaska.
In rural and remote Alaska, infrastructure isn’t only a “nice to have,” but it is how communities buy and store fuel in winter, keep food shelves stocked, access healthcare, and stay connected for work, school, and emergency response. Many projects that matter most—dock repairs, port access, barge landing upgrades, airport/road connectors, and intermodal yards—are essential, but often the projects are too small, too complex, or too logistically challenging for traditional funding.
Initial Federal investments in Alaska's transportation infrastructure through the Infrastructure Investment and Jobs Act (IIJA) exceeded $6 billion, primarily focusing on maritime, port, and rural aviation safety and reliability. Specific allocations include $285 million for the Alaska Marine Highway System (ferries) in support of coastal rural communities, and approximately $572.3 million in specific grant opportunities for small port and harbor planning studies, development and construction. Add to that $5.7 million for port planning and development, over $65.8 million for small port and harbor construction, $205.1 million for major port and maritime infrastructure, and $10.7 million for tribal and borough maritime projects. These funds are crucial to addressing the state's significant infrastructure challenges, and still not enough. Alaska faces considerable transportation infrastructure needs, highlighted by a deferred maintenance backlog of approximately $2.1 billion as of 2023. This highlights a substantial need for investment, which the state addresses through various funding mechanisms, including a record-setting $1 billion construction program for Federal Fiscal Year 2025 alone.
That’s where federal credit programs can help. TIFIA and RRIF are often viewed as tools for big metropolitan megaprojects, but both programs have pathways that can support smaller sponsors – especially when projects are bundled and paired with strong technical assistance. This has the potential to help address the Alaska project reality of high material and construction costs, thin margins, and limited capacity.
Rural Alaska projects face constraints that are rarely found elsewhere in the US:
Geography and weather drive short construction seasons and extremely high mobilization costs.
Intermodal dependence is the norm (marine + aviation + local roads) not the exception.
Small tax bases make local match and long-term maintenance harder to structure.
Limited staff capacity means communities may need help with scoping, procurement, environmental preparation, and financial readiness.
The expanded tools and outreach offered by the USDOT Build America Bureau (BAB) means that credit assistance is more accessible. The biggest hurdle for many Alaska sponsors is not interest - it’s project readiness. While we want to focus here on financing, it’s worth noting BAB’s investment in the Thriving Communities Program, which AML and DOT&PF are delivering in Alaska, in support of a cohort of 19 communities and regional organizations, where together we help to address that capacity building.
How TIFIA and RRIF Innovative Financing bolsters Alaska project readiness
The headline benefit of both the TIFIA and RRIF programs is the same; federal credit assistance can help move a project forward more expediently, particularly when grants alone do not fit the timeline or cover the total cost. Supporting projects that unlock reliability, safety, and supply chain stability are critical, especially when the benefits extend beyond one locale.
Examples of “Alaska-fit” project types include:
Port access and freight reliability: dock upgrades, port approach improvements, cargo staging areas, and intermodal yards that strengthen the marine-to-road/airport handoff.
Surface access to essential services: road segments or connectors that improve access to clinics, schools, barge landings, and evacuation routes.
Intermodal “pinch point” fixes: small but critical links (access roads, drainage, loading areas, safety improvements) that reduce delays and improve year-round operations.
The key is framing these projects in terms federal partners recognize: system performance, resilience, safety, reliability, dual use, and economic access and opportunity. It’s not just a matter of local convenience.
Through PNWER’s Regional Infrastructure Accelerator (RIA), in partnership with AML (Alaska Municipal League) and other Alaska partners, communities can access technical assistance to:
Identify finance-ready projects and right-size them for credit eligibility
Bundle related projects to reach scale and reduce transaction costs
Strengthen project narratives (economic, safety, resilience, equity)
Build sponsor readiness (delivery approach, governance, procurement, maintenance planning)
Connect with federal expertise early—before an application is “too far along” to adjust
This finance support is particularly important in rural Alaska, where local staff are often wearing multiple hats, and each project carries outsized operational risk when delivered without an achievable long-term plan. It is how PNWER’s Regional Infrastructure Accelerator and AML prepare remote cities, villages and boroughs to support projects. In Alaska, the challenge is rarely “Is this project needed?”—it’s “How do we get it structured and financed?” That is where a regional accelerator adds value.
The Bottom Line
The TIFIA and RRIF programs are designed to offer funding to supplement and leverage local, state and private funding for large and sometimes diverse rural projects. For rural and remote Alaska, credit assistance can be a powerful tool to close timing and funding gaps, accelerate delivery, and strengthen system reliability—especially when paired with technical assistance and smart project packaging. With PNWER RIA and AML support, Alaska communities can move from “we need this” to “we’re ready.” Ultimately, Alaska benefits from this access to financing that delivers critical high-impact infrastructure.
