Members of the Alaska House of Representatives and Alaska Senate watch as the final vote on Gov. Mike Dunleavy’s veto of Senate Bill 113 is displayed on the voting board in the House on Thursday, Jan. 22, 2026. (Photo by James Brooks/Alaska Beacon)

Members of the Alaska House of Representatives and Alaska Senate watch as the final vote on Gov. Mike Dunleavy’s veto of Senate Bill 113 is displayed on the voting board in the House on Thursday, Jan. 22, 2026. (Photo by James Brooks/Alaska Beacon)

Alaska Legislature fails to override Dunleavy’s veto of a tax bill intended to help education

Senate Bill 113 would have transferred corporate income taxes from other states and channeled some money into public school programs.

  • By James Brooks States Newsroom
  • Thursday, January 22, 2026 1:31pm
  • News

Republicans in the Alaska Legislature voted down a new funding source for public school programs Thursday as they sustained Gov. Mike Dunleavy’s veto of Senate Bill 113.

The vote on overriding the governor was 35-25, 10 votes short of the 45 needed for an override. All of the “no” votes came from Republicans in the House and Senate minority caucuses. Those voting no included some legislators, such as Sen. Rob Yundt, R-Wasilla, who had strongly supported the bill last year.

If SB 113 had been enacted, the bill would have shifted some corporate income tax payments from other states to Alaska.

The result was expected to be between $25 million and $65 million per year in new revenue for the state treasury, and the bill called for much of that money to go to programs that help young children learn how to read and to career-technical education programs that teach Alaskans non-college trades.

Dunleavy vetoed the bill last fall, saying he was unwilling to approve any tax measure that was not part of a comprehensive, long-term plan intended to balance state revenue and expenses.

Under the Alaska Constitution, the veto needed to be taken up during the first five days of the regular session if lawmakers wanted to override it.

This article will be updated.

This article originally appeared online at alaskabeacon.com. Alaska Beacon, an affiliate of States Newsroom, is an independent, nonpartisan news organization focused on connecting Alaskans to their state government.

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