The Municipality of Anchorage (Alaska) filed suit in U.S. District Court challenging the Federal Highway Administration’s approval of the Knik Arm Crossing. The Knik Arm Crossing project, along with the Gravina Island project (aka “Bridge to Nowhere”), received hundreds of millions of dollars from federal taxpayers in the 2005 transportation bill. Since that time, it has come to light that the project will cost far more than originally estimated and will likely carry far less traffic. Though tolls are expected to cover much of the cost of the project, there is doubt whether that will be enough to make up the funding gap. There is some interest among private companies about investing in the project.

Anchorage’s suit does not revolve around issues of funding, however, but contends that the project as proposed will have detrimental effects on the Port of Anchorage; the Municipality is in the midst of a $750 million expansion of the Port. A new bridge route that would avoid the Port will likely be far more expensive.

From the text of the suit as filed:

The Federal Highway Administration (FHWA or Defendant) and the Knik Arm Bridge and Toll Authority (KABATA) analyzed alternative routes for a new bridge crossing Knik Arm (the Knik Arm Crossing or KAC) and connections to the committed roadway networks on both sides of Knik Arm (Approach Corridors). Defendant's final action, memorialized in the ROD, together with the Final Environmental Impact Statement / Final Section 4(f) Evaluation (FEIS) dated December 18, 2007, failed to consider or objectively evaluate impacts to the expanding Port of Anchorage. Also, the Selected Alternative is not consistent with the Purpose and Needs statement of the FEIS and ROD because the Selected Alternative impairs newly constructed infrastructure at the Port of Anchorage rather than furthering regional transportation infrastructure and the movement of freight and goods through POA. This failure and inconsistency violate the National Environmental Policy Act (NEPA) and the Administrative Procedure Act (APA).