Alaska residents are familiar with the Permanent Fund Dividend (PFD), which is a yearly payment from the state based on oil profits. However, the issue has recently gained attention due to a heated debate over how to keep these payments going without depleting the government’s resources. I’ll explain everything in simple terms.
This year’s news is positive. The PFD (Permanent Dividend) increased by 30% from 2024 to $1,702 per person. The amount is divided into two parts: $298.17 for energy expenses (e.g. heating or lighting) and $1,403.83 from the Permanent Fund.
Not so bad, right? To receive this payment, please follow certain rules, which we have summarized for your convenience.
Who can receive a PFD stimulus check?
It is not automatic and not all Americans qualify today. To apply, you must complete the following checklist:
- Having lived in Alaska a whole year before applying.
- Be physically in the state at least 72 hours in the last two years.
- Have no convictions for serious crimes in the last year. If we talk about minor crimes, there cannot be more than two since 1997.
If you submitted your application before March 31, 2024, you should receive the funds by April 17, 2025. If you did not, you can still claim payments from previous years if your status was “Eligible-Not Paid” prior to April 9, 2025. There, you must move by traditional mail or through the PFD website.
Are the fund guaranteed for the PFD stimulus checks?
The PFD was established in 1976 when Alaska decided to set aside a portion of its oil profits in a “common fund.”The idea was for all residents to benefit from the state’s resources. However, in recent years, the government has used this money to balance the budget. That is, when you have a good streak, they give you more; when things go bad, they reduce your payment.
However, by 2025, things have become more complicated.Oil revenues are low, and public schools must be funded. If they follow the same strategy, the dividend per person will fall below $1,000. Nobody is pleased with that, so politicians are looking for alternatives.
Alaska has several options on the table, and it appears that none of them are particularly popular among Alaskan taxpayers.
- Withdraw money from the emergency fund (CBR):
This sounds easy, but there’s a catch: you need two-thirds of Congress to agree. With how divided the political landscape is, a small group of 11 representatives or 6 senators could block the idea. - Withdraw more money from the Permanent Fund:
Here only a simple majority is needed, but there is risk. If they exceed them, the fund could lose strength in the future, and credit rating agencies (such as Moody’s or S&P) could lower Alaska’s rating. Translation: the state would pay more interest if it borrows. - Raise taxes:
This is the proposal of some senators. For example:- Senate Bill 92: Would raise taxes on the oil company Hilcorp, generating some $150 million annually.
- Senate Bill 112: It would modify tax credits for oil companies, adding $190 million for public services or the PFD.
- There is also talk of charging more for online sales, but that would not make much money.
Governor Mike Dunleavy and the House of Representatives oppose raising taxes. Dunleavy has stated that he will veto any such proposal. Without your support, the Senate projects could fail.
The time is short. The Senate is debating their proposals, but it remains to be seen whether they can persuade their colleagues in the House. Citizens are unsure if their PFD for next year will be high, low, or dependent on the budget resolution.
