ALASKA — The Alaska Permanent Fund Dividend (PFD) program, funded by oil investment returns, distributes annual payments to eligible residents as a share of the state’s natural resource wealth. Created in 1982, the PFD is unique in the U.S. and viewed as a collective inheritance for all Alaskans.
History and Purpose of the PFD
Alaska established the Permanent Fund in 1976 to manage petroleum surpluses, and six years later began distributing earnings to residents. The fund invests globally and does not rely on crude oil sales. There are no socioeconomic restrictions for receiving the dividend.
Eligibility and Application Process
To qualify, applicants must have lived in Alaska for the entire previous year, with exceptions for education, medical treatment, or military service. Minors can be included on family applications. Incarcerated individuals during the eligibility period are disqualified. Applications close each year on March 31.
Proposed PFD Amounts for 2025
Lawmakers are debating the 2025 payment amount, balancing fiscal sustainability against direct payouts:
- Governor Mike Dunleavy proposes $3,900.
- The Senate Finance Committee suggests $1,000.
- The House of Representatives is negotiating a $1,400 compromise.
Analysts predict the final amount will likely be near $1,400 to preserve fund reserves.
Past PFD Amounts (Inflation Adjusted)
- 2023: $1,312
- 2022: $3,284
- 2021: $1,114
- 2020: $992
- 2019: $1,606
- 2018: $1,600
- 2017: $1,100
- 2016: $1,022
- 2015: $2,072
- 2014: $1,884
Risks and Financial Outlook
The Alaska Department of Revenue warns payments above $1,500 annually could deplete the fund’s reserves by 2030. The fund needs a minimum 5% return to maintain value; in 2023, it earned 6.8%. Volatility in global markets poses ongoing challenges.
Since its inception, the PFD has paid out $28.3 billion, with an inflation-adjusted average payment of $1,780. In 2022, 84% of eligible Alaskans claimed their dividend. Regions like North Slope and Bethel rely heavily on the payments to cover basic expenses.
Source Attribution
Information sourced from:
- Alaska Department of Revenue: https://dor.alaska.gov
- Alaska Public Policy Institute: https://alaskapublic.org
- Official state legislative proposals and budget document.