The Alaska Permanent Fund Dividend (PFD) is an annual resource distribution program to eligible residents of the state, active since 1982. Financed by oil royalties and managed by the Alaska Permanent Fund (APF), this sovereign fund seeks to benefit current and future generations. In 2024, more than 600,000 people received payments, cementing its reputation as a model for universal basic income in the United States.
Created in 1976 following the discovery of oil in Prudhoe Bay, the APF aimed to preserve non-renewable income for the future. Jay Hammond, governor at the time, promoted the initiative to avoid excessive spending and ensure economic equity. Currently, the fund combines an untouchable principal (constitutionally protected) and an Earnings Reserve Account (ERA), which finances dividends through investments.
The PFD stimulus program distributed $1,702 in 2025: how much is expected in 2025?
The Alaska Permanent Fund Corporation (APFC) is the entity in charge of managing the fund, which reached $83 billion in 2024. The calculation of the Permanent Fund Dividend (PFD) considers 50% of the profits generated, which in 2024 resulted in a payment of $1,702, including a supplement for energy costs.
The PFD has reduced poverty by 20% since 1990, according to studies by the University of Alaska. Indigenous communities and rural areas benefit the most. In 2024, the program injected $914 million into the local economy, boosting sectors such as commerce and tourism. Unlike criticism of universal income, 2018 research confirmed that it does not discourage employment.
Eligibility requirements and application process for the stimulus payment
To access the PFD, applicants must meet strict criteria: continuous residence in Alaska for the previous year, intent to remain in the state, and absences limited to 180 days. Exceptions apply for students, military and medical patients. Dependent minors require a resident sponsor, and people with recent criminal convictions may be excluded.
Applications must be submitted by March 31 of each year, either online through the myPFD portal, by mail or at authorized offices. In 2025, payment will begin on October 3 for direct deposits, while physical checks will be sent starting October 26. Additionally, the state warned about fraud using fake text messages that impersonate the myAlaska system.
The PFD is taxable at the federal level and must be reported on Form 1040, Schedule 1. In 2024, the full amount ($1,702) included an energy relief component, also subject to tax. Withholdings of 24% apply if there are inconsistencies in Social Security data. Advisors recommend consulting the IRS or tax preparers for specific cases, such as dividends from dependent minors.
Will the PFD continue next year?
The program faces tensions among legislators over the balance between dividends and state financing. While progressive groups ask to increase payments, conservative sectors prioritize public services. In 2023, a project to link the PFD to the five-year average of oil revenues was rejected, evidencing divergences. The decrease in oil reserves and fluctuations in global markets add uncertainty.
With 75% approval according to 2024 surveys, the PFD maintains transversal support. However, lawsuits have challenged cuts in years of budget crises. In 2021, the Alaska Supreme Court validated legislative authority to adjust amounts, setting a key precedent. Experts warn that, without structural reforms, the fund could reduce payments to $1,200 annually by 2030.
