The United States and the Municipality of Anchorage have reached a settlement to conclude more than a decade of litigation over the troubled modernization of the Don Young Port of Alaska. The city had sued over failed expansion efforts led by the Maritime Administration.

Under the deal, the federal government will pay Anchorage $180 million — about half of what the municipality had sought, but roughly equal to the value of the original project. The city had already won an additional $11.3 million in a 2024 ruling, and state and federal governments have committed a further $86.5 million. Anchorage’s mayor called the outcome a “massive victory.”

Alaska’s primary inbound-cargo port handles containers, liquid and dry bulk, break bulk and cruise ships, moving 5.5 million tons of fuel and freight in 2025. The modernization program will replace corroding cargo and fuel terminals with larger, seismically resilient facilities. Construction on the first new terminal began in late June and is due for completion in 2029, with the full $2.75 billion project now projected to finish in 2035.

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