Alaska’s $1,000 Permanent Fund dividend goes to residents as lawmakers balance budget
The Alaska Permanent Fund will distribute $1,000 per resident this year, the lowest payout since 2020, with more than 600,000 recipients as the state weighs budget needs and earnings.
Starting Thursday, Alaska residents will begin receiving $1,000 checks—the annual dividend from the Alaska Permanent Fund. The payout is the lowest since 2020, when residents received $992, and it will go to more than 600,000 of the state's roughly 740,000 residents.
The dividend is funded from the fund’s earnings on its roughly $83 billion oil wealth. The fund’s principal is constitutionally protected, and its earnings can be spent. Dividends have been paid since 1982. If the old market-based formula had been followed, residents would be receiving about $3,800 each, but lawmakers say that approach is unaffordable and instead set the amount through annual budget decisions.
Lawmakers this year argued that $1,000 is affordable while also backing higher funding for K-12 education and limiting draws from the fund’s earnings. To qualify, residents must meet residency and other requirements, with more than 600,000 expected to receive checks.
To understand the program’s roots, the Alaska Permanent Fund was created in 1976 to save a portion of the state's oil wealth for residents' long-term benefit. The fund has grown through investments, and while the principal is protected by the state constitution, its earnings can be spent to support government programs and dividends. Dividends have been paid every year since 1982, and in recent years lawmakers have used fund earnings to help balance the budget after education and other needs.
Alyssa Canoy, a single mother of two in Fairbanks, shows how the check can play a practical role in a household's winter costs. A fuel truck arrived ahead of schedule and left a bill for heating oil that topped about $2,600. The total dividend this year will approach $3,000, and Canoy plans to apply most of it to cover the heating bill, with the remainder earmarked for her sons' needs. She said the dividend is a blessing but would like lawmakers to set an amount that provides more peace of mind.
The dividend remains a regular feature of Alaska politics, reflecting a constant balancing act between providing direct relief and funding essential services, including education and infrastructure.