Gov. Mike Dunleavy speaks to reporters during a press conference at the Alaska State Capitol on Thursday, April 17, 2025. (Mark Sabbatini / Juneau Empire file photo)

Dunleavy orders freeze on state employee hiring, travel and new regulations due to fiscal crunch

Exemptions allowed for certain occupations and “mission-critical” purposes.

This is a developing story.

A freeze on state employee hiring and travel, as well as development of new regulations, was ordered by Gov. Mike Dunleavy on Friday in what he called cost-control measures due to the state’s increasingly perilous fiscal situation.

Exemptions are being allowed for certain professions such as law enforcement employees and situations such as “essential public safety or mission-critical duties,” according to a press release issued by the governor’s office.

“In light of the extensive drop in market oil prices and the projected impact on the State’s budget, there is a need to take immediate and responsible action to control spending,” the administrative order states. “The actions set forth in this Order are being taken to reduce the impact on available funds, to focus operations on core government services, and to streamline processes and the State’s workforce towards core mission objectives.”

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“The purpose of this Order is to announce an immediate freeze on all out-of-state travel, hiring, and new regulations packages. These actions are being taken to reduce the impact on available funds, streamline processes, and focus operations and the State’s workforce on the fulfillment of the State’s core mission and services. If these actions are not taken now, the State could suffer dire consequences in the future.”

Provisions of the order include:

• A freeze on all out-of-state travel by state employees and individuals traveling on behalf of the state regardless of funding source.

• A statewide hiring freeze except for “public safety or essential services” such as law enforcement, 24-hour care facilities, and “frontline positions at agencies like OCS and the Division of Public Assistance.”

• A freeze on new regulations not already sent out for public notice.

The state is facing an increasingly dire economic forecast, due largely to a drop in oil prices and other economic uncertainty that has occurred during the first months of President Donald Trump’s return to office.

• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.

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