ANCHORAGE, Alaska (AP) – The administration of Alaska Gov. Mike Dunleavy is negotiating a contract extension that would pay a Virginia law firm $125,000 of state funds for its services in a legal fight with Alaska unions.

The Anchorage Daily News reported Thursday that the Republican administration wants to expand its current contract with Consovoy McCarthy.

The state and its public employee unions traded lawsuits last month in a dispute over union membership and dues.

The state has a contract signed Aug. 2 that caps payment at $50,000 to the conservative law firm with strong ties to President Donald Trump.

State regulations permit no-bid, legal-services contracts if they are worth less than $50,000.

The administration can extend another no-bid contract capped at $100,000, but would need written justification to increase that amount.

Information from: Anchorage Daily News,