On July 9, 2025, the President signed into law the Alaska Native Village Municipal Lands Restoration Act of 2025 (“ANVMLRA”). This legislation will permit Alaska Native Village Corporations to recover from the State of Alaska land that has been conveyed to the Municipal Land Trust under Section 14(c)(3) of the Alaska Native Claims Settlement Act (“ANCSA”).

Section 14(c)(3) of ANCSA required Village Corporations to convey a minimum of 1,280 acres of land to any municipal corporation established in the native village. If there was no municipal corporation in a particular village, the Village Corporation had to convey that 1,280 acres to the State of Alaska, to be held in trust for a future municipal corporation.

Land held in trust by the State for this purpose is intended to be used for the establishment of first or second-class cities. But Alaska law requires that a community meet certain requirements to become such a city. For a second-class city, the boundaries must include all areas necessary to efficiently provide municipal services, an economy large enough to provide municipal services, a stable enough population to support a local government, and a demonstrated need for a city government. To become a first-class city, a community must have all of the above, and a population of 400 permanent residents or more.

At the time of ANCSA’s passing, Congress expected that municipal corporations would eventually appear in every native village in Alaska. Fifty-four years on from ANCSA’s enactment, such a reality is a long way off, and significant acres of land are held by the State of Alaska in trust for future local governments that may never be established. ANVMLRA ensures that village corporation land does not remain in the State’s hands in perpetuity.

Specifically, ANVMLRA amends Section 14(c)(3) to allow Village Corporations to receive back the land conveyed to the State for a municipal corporation if no municipal corporation exists in that village by the time of ANVMLRA’s enactment. Section 14(c)(3) is amended to include the following language:

(iv) CASES IN WHICH CONVEYANCE SHALL NOT BE REQUIRED.—

(I) IN GENERAL.—Notwithstanding any other provision of this subparagraph, if a Village Corporation, prior to the date of enactment of the Alaska Native Village Municipal Lands Restoration Act of 2025, conveyed to the State in trust all or a portion of the acreage of land required to be conveyed under this subparagraph for the establishment of a Municipal Corporation in the future, and a Municipal Corporation has not been established as of that date of enactment, on formal resolution by the Village Corporation and the residents of the Native village requesting dissolution of the trust, the trust shall be dissolved and title to the land shall revert to the Village Corporation, subject to subclause (III).

(II) ADDITIONAL LAND.—Notwithstanding any other provision of this subparagraph, as of the date of enactment of the Alaska Native Village Municipal Lands Restoration Act of 2025, a Village Corporation shall not be required to convey any additional land in trust under this subparagraph for the establishment of a Municipal Corporation in the future.

(III) REQUIREMENTS.—In accordance with subsection (g)—

(aa) the reversion of land to a Village Corporation pursuant to subclause (I) shall be subject to—

(AA) valid existing rights created by the applicable trust; and

(BB) any existing easements, rights-of-way necessary for public roadway access, or rights-of-way for access of holders of valid existing rights; and

(bb) the Village Corporation shall assume the obligations of the applicable trust with respect to any lease or other use agreement applicable to the land on reversion of the land to the Village Corporation pursuant to subclause (I).

This amendment may be positive for Village Corporations. Village Corporations located in native villages that do not have an established municipal corporation will have land conveyed back to them. Senators Murkowski and Sullivan, and Representative Begich have applauded ANVMLRA’s passing, explaining that it “empower[s] Alaska Native people to exercise self-determination over their lands and resources for the benefit of their communities.”

But the reconveyance of these acres comes with potential risks. ANVMLRA authorizes the reconveyance of the land subject to any valid existing rights created by the trust, as well as “any existing easements, rights-of-way necessary for public roadway access, or rights-of-way for access of holders of valid existing rights.” It also requires that Village Corporation assume the obligations of the applicable trust with respect to leases or other use agreements applicable to the land. This could force Village Corporations to allow third parties to access their land based on agreements made by the State.

In addition to allowing Village Corporations to take back land the State is currently holding in trust, if the Village Corporation so wishes, ANVMLRA also eliminates any requirement that Village Corporations continue to give land to the State to be held in trust for a future municipal corporation.

The full amended language is as follows:

(c) Patent requirements; order of conveyance; vesting date; advisory and appellate functions of Regional Corporations on sales, leases, or other transactions prior to final commitment Conveyance Of Certain Land By Village Corporation.

(1) IN GENERAL.—Each patent issued pursuant to subsections (a) and (b) shall be subject to the requirements of this subsection. Upon receipt of a patent or patents:

(1)(A) the Village Corporation shall first convey to any Native or non-Native occupant, without consideration, title to the surface estate in the tract occupied as of December 18, 1971 (except that occupancy of tracts located in the Pribilof Islands shall be determined as of the date of initial conveyance of such tracts to the appropriate Village Corporation) as a primary place of residence, or as a primary place of business, or as a subsistence campsite, or as headquarters for reindeer husbandry;.

(2)(B) tThe Village Corporation shall then convey to the occupant, either without consideration or upon payment of an amount not in excess of fair market value, determined as of the date of initial occupancy and without regard to any improvements thereon, title to the surface estate in any tract occupied as of December 18, 1971 by a nonprofit organization;.

(3)(C) CONVEYANCE TO MUNICIPAL CORPORATION OR THE STATE IN TRUST

(i) IN GENERAL. The Village Corporation shall then convey to any Municipal Corporation in the Native village in the future, title to the remaining surface estate of the improved land on which the Native village is located and as much additional land as is necessary for community expansion, and appropriate rights-of-way for public use, and other foreseeable community needs.

(ii) MINIMUM ACREAGE. provided that tThe amount of lands to be transferred to the Municipal Corporation or in trust shall be no less than 1,280 acres unless the Village Corporation and Municipal Corporation or the State in trust can agree in writing on an amount which is less than 1,280 one thousand two hundred and eighty acres:.

(iii) NET REVENUES.

• • • • • • • 1. IN GENERAL.—provided further that aAny net revenues derived from the sale of surface resources harvested or extracted from lands reconveyed pursuant to this subsection shall be paid to the Village Corporation by the Municipal Corporation or the State in trust.
              2. DEFINITION OF SALE.—Provided, however, That the word “sale”, as used in the preceding sentence, For purposes of subclause (I), the term “sale” shall not include the utilization of surface resources for governmental purposes by the Municipal Corporation or the State in trust, nor shall it include the issuance of free use permits or other authorization for such purposes.;

(iv) CASES IN WHICH CONVEYANCE SHALL NOT BE REQUIRED

• • • • • • • 1. IN GENERAL.—Notwithstanding any other provision of this subparagraph, if a Village Corporation, prior to the date of enactment of the Alaska Native Village Municipal Lands Restoration Act of 2025, conveyed to the State in trust all or a portion of the acreage of land required to be conveyed under this subparagraph for the establishment of a Municipal Corporation in the future, and a Municipal Corporation has not been established as of that date of enactment, on formal resolution by the Village Corporation and the residents of the Native village requesting dissolution of the trust, the trust shall be dissolved and title to the land shall revert to the Village Corporation, subject to subclause (III).
              2. ADDITIONAL LAND.—Notwithstanding any other provision of this subparagraph, as of the date of enactment of the Alaska Native Village Municipal Lands Restoration Act of 2025, a Village Corporation shall not be required to convey any additional land in trust under this subparagraph for the establishment of a Municipal Corporation in the future.
              3. REQUIREMENTS—In accordance with subsection (g)—

(aa) the reversion of land to a Village Corporation pursuant to subclause (I) shall be subject to—

            (AA) valid existing rights created by the applicable trust; and

            (BB) any existing easements, rights-of-way necessary for public roadway access, or rights-of-way for access of holders of valid existing rights; and

(bb) the Village Corporation shall assume the obligations of the applicable trust with respect to any lease or other use agreement applicable to the land on reversion of the land to the Village Corporation pursuant to subclause (I).

(4)(D) tThe Village Corporation shall convey to the Federal Government, State, or to the appropriate Municipal Corporation, title to the surface estate for airport sites, airway beacons, and other navigation aids as such existed on December 18, 1971, together with such additional acreage and/or easements as are necessary to provide related governmental services and to insure safe approaches to airport runways as such airport sites, runways, and other facilities existed as of December 18, 1971;.

(5)(E) fFor a period of ten years after December 18, 1971, the Regional Corporation shall be afforded the opportunity to review and render advice to the Village Corporations on all land sales, leases or other transactions prior to any final commitment.

(2) TECHNICAL ASSISTANCE.

(A) IN GENERAL. – There is are authorized to be appropriated such sums as may be necessary for the purpose of providing technical assistance to Village Corporations established pursuant to this chapter in order that they may fulfill the reconveyance requirements of this subsection.

(B) FORM OF FUNDING.—The Secretary may make funds available as grants to ANCSA or nonprofit corporations that maintain in-house land planning and management capabilities.

Because the reconveyance of trust land to Village Corporations may come with various risks and benefits, based on the current leases, rights-of-way, or other valid existing rights, Village Corporations should exercise caution before immediately acting to receive their land. Taking steps to discover what land-use agreements or rights the State has provided to third parties will allow Village Corporations to make informed planning decisions regarding the reconveyance of trust land and the effects such a reconveyance will have.

This article summarizes aspects of the law and does not constitute legal advice. For legal advice with regard to your situation, you should contact an attorney.