The Alaska Public Works Program was authorized during the 81st Congress through the Alaska Public Works Act, Public Law 264. The Act authorized the General Services Administration to construct public works in Alaska, at a total cost of $70 million, then to sell them to the Territory of Alaska or other public bodies in Alaska at a purchase price that would recover approximately 50% of the total estimated cost. The authority, set to expire June 30, 1955, was extended to June 30, 1959. The program expenditure totaled over $69 million dollars.

The original office was located in Juneau from Nov. 21, 1949 until Dec. 31, 1961. Field offices were established in Fairbanks, Anchorage and Ketchikan.

Approximately 46% of the Public Works expenditures went to schools. Fifty-four projects modernized or created new structures throughout the state except north of the Arctic Circle (under the jurisdiction of BIA). New water supply systems were constructed in almost every incorporated community in Alaska. Street improvements, hospitals and health care centers, municipal buildings (fire, equipment storage, a library, and state office buildings) were also constructed and the University of Alaska was expanded. Small boat harbors were provided at Haines and Skagway.