Murkowski secures billions for Alaska as Democrats decry ‘polar payoff’

By Elías Thorsson July 2, 2025
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U.S. Senator Lisa Murkowski (R-AK) speaks to the press after the Senate passes U.S. President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., U.S., July 1, 2025. REUTERS/Elizabeth Frantz

At a critical moment for President Trump’s sprawling domestic policy package, Alaska Senator Lisa Murkowski emerged as the decisive vote—and used her leverage to win sweeping concessions for her home state, according to detailed reporting by The Wall Street Journal.

With two Republican senators opposed and another on the fence, Murkowski’s support was essential to the bill’s passage through budget reconciliation. Rather than adjust the bill for other GOP holdouts, Senate Majority Leader John Thune focused on winning over Murkowski—and it worked.

The final legislation includes $50 billion for rural hospitals, with $280 million reportedly earmarked for Alaska, as well as $25 billion for the Coast Guard—including funding for 16 new icebreakers and $300 million to home port one in Juneau. The bill also contains tax benefits for Alaska Native whaling captains and fishing-boat operators, and a last-minute removal of taxes on renewable energy projects that Murkowski opposed.

U.S. Senate Majority Leader John Thune (R-SD) and U.S. Sen. Lisa Murkowski (R-AK) walk to the Senate floor as Republican lawmakers struggle to pass U.S. President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., U.S., July 1, 2025. REUTERS/Nathan Howard

While Murkowski and fellow Alaska Senator Dan Sullivan were unsuccessful in securing a more favorable Medicaid matching rate for their state, they did win a temporary exemption from certain food assistance cuts and other state-specific provisions. The Alaska wins came after intense overnight negotiations involving both senators and Centers for Medicare and Medicaid Services Administrator Mehmet Oz.

After casting her vote, Murkowski told reporters she hoped the House would revise the bill, calling it “not good enough for the rest of our nation,” even as she defended her work on behalf of Alaskans.

Senate Democrats criticized the targeted benefits as a “polar payoff.” Minority Leader Chuck Schumer’s jab prompted a sharp reply from Sullivan: “If he’s calling it the polar payoff, I’d call it the New York nothingburger.”

Murkowski’s influence stood out in a chamber where she has often positioned herself as an independent voice. But critics say her latest maneuvering reveals a more transactional side—one willing to back a massive, hastily written bill in exchange for earmarks and special treatment for her state. While she publicly criticized the process and the bill’s overall quality, she nonetheless provided the crucial 50th vote that allowed it to pass.

Her vote also highlights a recurring pattern: Murkowski distances herself from Trump rhetorically, but ultimately enables key parts of his agenda when the stakes are high. Despite casting herself as a centrist, she has shown a readiness to extract concessions in exchange for compliance—leveraging Alaska’s unique needs not just for support, but political cover. For a senator who once defied her party to survive a write-in campaign, this latest deal suggests a shift from defiant independence to pragmatic bargaining—to the benefit of Trump.