More than half a million residents of Alaska are set to receive a $1,702 Direct Payment on June 18. The initiative is part of a recurring state-run program that allocates funds derived from oil-related revenues to eligible individuals.
According to Newsweek, the payment combines two components: a standard transfer and an additional energy relief amount. Recipients must meet residency and legal requirements defined by state authorities.
The program is administered annually and the amounts distributed vary depending on multiple fiscal and legislative factors, including oil market performance and budgetary decisions made by the Alaska Department of Revenue.
Breakdown of the 2024 Payment
The total payment of $1,702 consists of two components: a base dividend of $1,403.83 and an Energy Relief Payment of $298.17. This total represents an increase of nearly $400 over the 2023 dividend, which was $1,312.
The payments come from the Alaska Permanent Fund, created in 1976 to safeguard a portion of oil revenues for long-term investment. Today, the fund holds more than $81 billion in assets, diversified across stocks, bonds, real estate, and other holdings.
The dividend varies annually depending on market performance, legislative decisions, and additional relief measures.
It offers a direct financial return from the exploitation of natural resources, a model that remains uncommon across the United States.
Eligibility Requirements for Alaskans
To qualify for the 2024 PFD, applicants must have been residents of Alaska throughout 2023, must intend to remain in the state indefinitely, and must not have been convicted or incarcerated for certain crimes. Applications had to be submitted by the March 31 deadline.
Those listed as “Eligible-Not Paid” as of May 8 will receive their payments on June 18, provided no issues arise with their application status.
The payment is considered taxable income by both the federal government and the state of Alaska, and may impact some residents’ overall tax obligations.
Economic and Political Implications
According to Department of Revenue Commissioner Adam Crum, the dividend continues to play a critical role in supporting local economies across Alaska. As Crum stated:
“This is the 43rd year Alaskans have received their share of the state’s natural resources and investment earnings. The 2024 PFD will create an economic opportunity across all of our local communities.”
Legislative debates continue around the long-term structure of the PFD. Lawmakers are considering adjustments to the payout formula, the introduction of spending caps, and broader fiscal reforms to stabilize state finances.
The ongoing volatility in oil prices and investment returns has added urgency to these discussions.
Context and Recent History
The highest PFD on record was paid in 2022, when each eligible resident received $3,284.
That payment included a base amount of $2,622 and an Energy Relief Payment of $662, reflecting both strong investment returns and legislative action to address rising energy costs.
While the 2024 dividend is smaller, it remains significant for many households, especially in remote communities where cost of living is high and economic opportunities are more limited.
With an estimated 600,000 Alaskans benefiting, the program continues to serve as a cornerstone of the state’s identity and its approach to resource wealth management.
