Trump claims the Alaska gas pipeline is now a ‘federal government project’
President Donald Trump is claiming the gas pipeline is “now a U.S. Federal Government project,” which may mean a giant federal subsidy could be in the offing—as the only thing that has ever stood between Alaska and a gas pipeline is a money pipeline.
Had Joe Biden said this, Sen. Dan Sullivan, Rep. Nick Begich the Third, and Gov. MIke Dunleavy would be pulling the federal overreach alarm. Instead they will applaud.
Lutnick claimed on October 29, 2025 that Trump would direct $200 billion from Korea into many projects in the U.S., including the Alaska LNG pipeline.
“The investments will be directed and approved by the president,” Lutnick claimed a year ago.
Lutnick invented a different story Tuesday for the crowd in Wasilla while repeating the lie that South Korea has committed to pay for the pipeline.
“So two months ago, I'm spending time with President Trump, and he says, we've got to build the greatest pipeline in the United States of America, in Alaska. So he says, Howard, go get it done. And what happened is the president has created the greatest trade deals in the history of economies, the history of the United States of America,” said Lutnick, a former visitor to Epstein’s island.
“And so the Koreans, because the president has federalized this project, the Koreans, the Republic of Korea has committed $50.1 billion to build the line in Alaska,” said Lutnick.
At this, Trump, Lutnick and others applauded and joined in a “Build the Line!” chant. People in the crowd waved the “Build the Line!” signs, among the only ones allowed in the campaign event.
Trump said Wednesday that Taiwan decided to invest $4.4 billion because this is now a federal project.
Perhaps “federalized” will mean nothing in this era of righteous Republicans attacking any government venture as “socialism.” Hypocrisy will never enter into the discussion.
Sullivan has claimed the Alaska LNG project will stand or fall based on private enterprise, but Trump did not say this is a private project.
Trump has championed the idea of using government money to intervene in private companies and take ownership on a whim.
Perhaps “federalized” means that Trump wants the U.S. government to turn the pipeline into a federal public works project on the grounds that it is a matter of national security. It wouldn’t be private enterprise anymore, but that would not stop Trump.
A federal government takeover would be the only way to make sure a pipeline gets built because unlike the private sector, the government never has to worry about turning a profit. An uneconomic project would proceed with a big enough government subsidy.
Making it a federal job may be the only way to “build the greatest pipeline in the United States of America,” as Lutnick claimed Trump told him.
Lutnick continued at the Trumpfest in Wasilla with his new version of events:
“So with Dan Sullivan, a couple of weeks ago, we announced that project in the Oval Office, which is, every time you go in the Oval Office with the President Trump, it is so cool. And he says to me, the president says to me, Howard, you got to make it better. So all week we were working with the Taiwanese government, and they agreed to buy 30 percent of everything produced on that line, and they will invest $4.4 billion on top of the Koreans to make sure this line gets built.”
“So thank you, Mr. President, for the greatest deal in the history of Alaska,” said Lutnick.
We’ll see.
Taiwan is in a delicate position because Trump has delayed a $14 billion arms sales package to Taiwan to appease China. That deal has become a bargaining chip and Taiwan will do what it can to appease Trump.
There is no signed binding agreement with Taiwan or South Korea. If it becomes a federal project, all sorts of obstacles will disappear.
“I was just in Alaska launching the largest energy infrastructure projects in Alaska History,” Trump claimed Wednesday. “This 50 Billion Dollars Infrastructure Investment from the Republic of Korea is part of their Trade and Investment Deal with me.”
“This is the GREATEST Project in Alaska History and this only happens with me in the White House,” Trump boasted.
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