NOTN- Governor Mike Dunleavy has vetoed a bipartisan bill that aimed to expand loan access for small commercial fishing businesses in Alaska, legislation that passed the Legislature by a vote of 59–1.

Senate Bill 156, sponsored by Senator Jesse Kiehl , would have enabled the Alaska Commercial Fishing and Agriculture Bank (CFAB) to offer low-interest loans for permit holders in the state’s fishing industry. It also authorized the Department of Commerce, Community, and Economic Development to invest in CFAB through the purchase of nonvoting, preferred shares, using funds left over from a now-defunct aviation loan program.

“That’s a weird move. First because it built on work I helped him do last year,” Sen. Kiehl said in a Facebook post Thursday. “I was glad to help Alaskans, and even took pains to share credit with the governor.”

The veto halts what advocates called a targeted solution to help permit-holding fishers refinance debt under more stable terms, a tool supporters say could have strengthened Alaska’s seafood economy and reduced the risk of permit loss in the face of rising interest rates.

“With our fisheries being dominated by outside special interests, this bill was designed to help struggling AK fishermen by providing competitive loans to help them buy permits, vessels and gear.” Senator Bill Wielechowski said in a post on X.

Kiehl expressed disappointment at the veto, noting the bill’s near-unanimous support across party lines. “Strange way to run a state,” he said.

The bill posed little to no costs to the state, according to legislative analysis.

The governor’s office has not yet released a public explanation for the veto.