If you live in Alaska, now is the time to apply for and benefit from new stimulus payments, which may be deposited into your bank account after the application process in March. The annual Permanent Fund Dividend (PFD) is derived from the state’s oil revenues and provides crucial financial assistance to residents.
However, the exact amount each Alaskan will receive from this year’s oil wealth distribution is unknown.
What does Mike Dunleavy say about these checks?
According to Alaska Gov. Mike Dunleavy, each Alaskan will receive approximately $3,900. However, the governor will determine the exact amount during the legislative session. To cover the $3,900 that Governor Dunleavy wants to send out, more than $1,5 billion would need to be drawn from the state’s main non-permanent fund savings account, known as the Constitutional Budget Reserve.
Dunleavy’s proposal is based on a formula that, according to state law, has not been used in more than a decade. If lawmakers use a more current formula, such as 25% of the state’s annual drawdown from the Alaskan Permanent Fund, the Permanent Fund Dividend (PFD) payment would be $1,400.
More about the Alaska Permanent Fund Dividend
The PFD is intended to be a fund provided to eligible Alaska residents from the state’s oil revenue profits. The Alaska Permanent Fund Dividend was established in 1976 as an attempt to share some of the state’s resources with citizens.
The PFD rate provided to Alaskans varies annually depending on factors such as oil revenues and state investments. The 2024 PFD amount was greater than the 2023 PFD amount. However, the estimated PFD amount for this year is the same as the 2024 amount, which is still significantly lower than the 2022 PFD amount.
What does these PFD checks do for the Alaskan economy?
The new $1,702 stimulus checks issued to citizens provide significant economic benefit. Residents can use their PFD checks to pay for everyday expenses. Alaskans can also use their PFD checks to pay rent, mortgages, and energy bills. Alternatively, PFD checks could be used to pay for medical expenses, tuition, or school supplies.
Many Alaskans are advised to set aside a portion of their PFD checks to cover future needs.
Given the numerous benefits of PFD checks, it is assumed that there are no debates about their viability. The question that is frequently raised is whether Alaskans should receive larger payouts from the state’s oil wealth.
At the same time, it is proposed that, rather than providing direct funds, the PFD be used in the healthcare and education sectors. Legislators are also concerned about the long-term sustainability of these PFD checks.
Who will be getting these new Stimulus Checks that will be hitting bank accounts?
To be eligible for the PFD stimulus check, the applicant must be an Alaskan resident for the entire year 2024. People who are away from Alaska for more than 180 days are not eligible to receive stimulus checks.
If the person left Alaska for an approved reason, such as military service, education, or medical treatment, they will still be eligible for these PFD checks. People who have committed felonies within the last year are not eligible to receive these stimulus checks.
According to the official Alaska Department of Revenue website, Alaskans can still apply for these stimulus checks, as the application period runs from January 1 to March 31, 2025. Late applications will not be accepted.
Those who will receive these PFD stimulus checks can expect their payments by October 2025. The Internal Revenue Service (IRS) still considers PFD stimulus checks to be taxable income, so keep this in mind.
