Peltola unveils ‘affordability’ campaign as she challenges incumbent US Sen. Dan Sullivan

Democratic candidate proposes to eliminate income taxes for Alaskans earning less than the state’s median household income

Mary Peltola speaks to a crowd of supporters for her candidacy for U.S. Senate at a campaign kick-off event in Juneau on Jan. 23, 2026 (Corinne Smith/Alaska Beacon)

By James Brooks

Alaska Beacon

The leading challenger to Republican incumbent U.S. Sen. Dan Sullivan is proposing to eliminate income taxes for Alaskans earning less than $92,000 per year, the state’s median household income.

Democratic candidate Mary Peltola introduced the idea Monday as part of a newly expanded platform of campaign ideas.

Among some of the other ideas: a federally subsidized “Essential Freight Service” for air cargo to small communities, a renewal of the federal Expanded Child Tax Credit, tax credits for renters and child care facilities, and price controls and limits on corporate mergers.

There are relatively few seats in the U.S. Senate that could be won by either a Republican or a Democrat this year. In a recent analysis, NPR dubbed Alaska’s seat the “majority maker.” National Democrats are hoping that Peltola can beat Sullivan and help them take control of the Senate, which currently has a 54-46 Republican edge. 

To that end, they’ve donated millions of dollars to her campaign. 

Meanwhile, Sullivan has continued to strengthen a network of connections within the state. He’s already received endorsements from the United Fishermen of Alaska — the state’s largest commercial fishing organization — and last week was endorsed by the ANCSA Regional Association, a group representing the state’s largest Alaska Native corporations. 

Both groups represent constituencies that have previously favored Peltola. 

Statewide opinion polls have found economic issues are at the top of Alaskans’ minds, and many Alaskans have an extraordinarily pessimistic view of the state’s financial health and their own financial situation.

Many residents believe that any economic improvements won’t trickle down to them, said Matt Larkin, a leading pollster, in a recent interview.

That’s the environment in which Peltola is launching her new economic campaign.

“Affordability — it’s on everyone’s mind,” she said in an interview ahead of the launch.

Peltola, who lives part of the year in rural Alaska, said she believes the high cost of heating fuel and stove fuel has created a crisis.

“I feel like we’re in a dire situation that I have never experienced,” she said, explaining that her monthly fuel bill now exceeds her mortgage.

During a recent visit to St. Mary’s, on the Yukon River in southwest Alaska, she talked to people who are currently paying $10 per gallon for fuel. They’re expecting prices to go up by 40-50%, she said.

If they can’t afford fuel, “that means there’s no electricity, there’s no heat, there’s no gas for hunting and fishing. This is dire. And I, you know, I just think we’ve got to get really serious about how to bring down prices for everyday Alaskans, for everyday households.”

Peltola drew a direct line between the American war on Iran and those high prices. Sullivan has been a staunch supporter of the war. Peltola believes Congress needs to intervene, though she stopped short of outright opposing it.

“There is a need for the War Powers Act. I do not believe that any President should be making these kinds of substantive decisions unilaterally,” she said.

Peltola’s call for an “Essential Freight Service” mirrors her support for Bypass Mail and the Essential Air Service, two existing subsidy programs that support flights to rural Alaska and other parts of rural America.

She said the exact scope of the freight program still needs to be worked out. Alaska is essentially “six states within a state,” and “and every single region is so unique, and I think it would have to be unique approaches in every region and every community.”

Monday’s announcement is the second significant policy launch by Peltola since she announced in January that she would challenge Sullivan for Senate.

In late March, she announced her support for Congressional term limits, a ban on stock trading by members of Congress and her support for a Constitutional amendment to overturn the U.S. Supreme Court case known as Citizens United.

That case allows third-party groups to spend unlimited amounts of money on political campaigns as long as they do not coordinate with candidates.

Speaking Friday, Peltola said anti-corruption and affordability are complementary issues.

“I think we’re all going to be looking at where the price gouging is and where we can halt corporate greed and inflation,” she said.

• James Brooks Cascade is a longtime Alaska reporter who lives in Juneau. He previously worked at the Anchorage Daily News, Juneau Empire, Kodiak Mirror and Fairbanks Daily News-Miner. Alaska Beacon is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.