The Alaska Permanent Fund Dividend (PFD) Program distributes annual payments to residents, funded by oil investment returns. Created in 1982, it is unique in the U.S. and is considered a “collective inheritance” for natural resources. Its amount has ranged from $1,312 in 2023 to more than $2,000 in previous years.
In 1976, Alaska established the Permanent Fund to manage surpluses from its petroleum industry. Six years later, the Permanent Fund was implemented to distribute profits to residents. Under state law, the fund operates with global investments, not direct sales of crude oil. Payments do not require socioeconomic conditions.
How much has been proposed for the PFD stimulus check?
To receive the PFD, applicants must have resided in Alaska for the entire preceding year. Absences for educational, medical, or military service are valid. Minors can apply through family applications. Those serving a criminal sentence or being incarcerated during the eligibility period lose eligibility. The application process closes every March 31st.
The PFD contributes between 3% and 8% of annual income to rural households, according to state data. By 2024, the fund will exceed $75 billion. Lawmakers are debating whether to prioritize individual payments or fund infrastructure. Governor Mike Dunleavy proposes $3,900 for 2025, while the Senate suggests $1,000. The House of Representatives is negotiating a compromise of $1,400.
Three amounts are competing for the 2025 PFD: $1,000 (Senate Finance Committee), $1,400 (House of Representatives), and $3,900 (Governor Dunleavy). The discrepancy reflects competing priorities: fiscal sustainability versus direct return of oil revenues. Analysts predict an agreement closer to $1,400, avoiding depleting state reserves.
The PFD is exempt from state taxes but is reported to the IRS. In 2023, 9% of payments were earmarked for educational savings. One legislative proposal seeks to link future amounts to the fund’s five-year average earnings. Another proposes allocating 25% to a “universal basic income,” though without concrete progress.
Here are the Alaska PFD amounts from 2014 to 2023 presented in bullet points, with the 2023 inflation-adjusted values:
- 2023: $1,312 (adjusted: $1,312)
- 2022: $3,284 (adjusted: $3,284)
- 2021: $1,114 (adjusted: $1,114)
- 2020: $992 (adjusted: $992)
- 2019: $1,606 (adjusted: $1,606)
- 2018: $1,600 (adjusted: $1,600)
- 2017: $1,100 (adjusted: $1,100)
- 2016: $1,022 (adjusted: $1,022)
- 2015: $2,072 (adjusted: $2,072)
- 2014: $1,884 (adjusted: $1,884)
Is the PFD stimulus check program at risk of disappearing?
The Alaska Department of Revenue warned that payments above $1,500 annually could deplete reserves by 2030. The fund requires a minimum return of 5% to maintain its real value. In 2023, investments generated 6.8%, but fluctuations in global markets increase volatility.
Since 1982, the PFD has distributed $28.3 billion. The average inflation-adjusted payment is $1,780. In 2022, 84% of those eligible claimed the benefit. Regions like the North Slope and Bethel rely more on the money: 21% of their residents use it to cover basic services, according to the Alaska Public Policy Institute.
