US to announce $150 million for Alaska power lines as Vance campaigns in Senate battleground

The U.S. Energy Department plans to allocate $150 million for power lines in Alaska, coinciding with Vice President JD Vance's visit to the state. This follows the Senate race where Republican Senator Dan Sullivan is battling Democrat Mary Peltola, both vying for the critical seat in the November midterm elections. Winning the seat is crucial for Democrats aiming to seize control of the U.S. Senate.

Recent polls suggest Peltola, a former House representative, is leading Sullivan by a narrow margin. The energy initiative is part of a series of economic and investment announcements by President Donald Trump and his administration to address voter concerns over the Iran war and rising gasoline prices. Through federal funds, the plan aims to build 223 miles (359 km) of new electrical transmission lines connecting the Beluga power station on Alaska’s southern coast to Healy in the state's interior.

This route traverses major ports and nearly three-quarters of Alaska's population of roughly 735,000 people. The total project cost stands at $400 million. In a recent New York Times poll, Peltola leads by 7 percentage points, though other polls indicate the race as being closely contested. Alaska's vast and rural landscape makes polling challenging.

President Trump announced plans for South Korea to invest $200 billion in U.S. projects, including an Alaska liquefied natural gas pipeline, but Seoul later stipulated certain conditions. Both Sullivan and Peltola have made affordability and energy central themes in their campaigns. Sullivan advocates for drilling for oil and gas in Alaska's protected wilderness and calls for a ban on diesel exports amid economic repercussions from conflicts with Iran and Russia's war in Ukraine.

Peltola supports refining more oil and natural gas in Alaska but opposes drilling in environmentally sensitive areas. She has also pushed for federal tax credits for solar, wind, and hydropower projects.