Alaska residents are about to receive a financial boost as the state prepares to distribute $1,702 stimulus payments this month. The timing aligns perfectly with tax season, offering relief to thousands of households.
Unlike traditional federal stimulus checks, these payments come from the Alaska Permanent Fund Dividend (PFD), a unique state program that ensures Alaskans benefit from the region’s natural resources.
When Will Alaskans Receive Their Stimulus Payments?
The Alaska Department of Revenue has confirmed that eligible residents will receive their $1,702 payment on March 20, 2025. The PFD, established in the 1970s, allows residents to share in the state’s oil and mineral wealth, providing an annual payout to nearly all Alaskans—regardless of income level.
Applications for this year’s PFD were open between January and March, and those who met the requirements are now set to receive their payment. While the fund is accessible to most Alaskans, there are specific eligibility criteria that applicants must meet.
Who Qualifies for the $1,702 Stimulus?
To receive the Alaska Permanent Fund Dividend, residents must be legal residents of the state and have lived there for at least 12 months without any plans to leave. If an applicant has been out of the state for an extended period, they must have spent at least 72 continuous hours in Alaska within the past two years.
Additionally, individuals who have been incarcerated for a felony in the past 12 months do not qualify. If an applicant has a past felony conviction or two misdemeanors since 1997, they must not have committed any further misdemeanors in the past year.
Why Does Alaska Offer These Payments?
Unlike other states, Alaska has a unique fiscal structure that allows it to distribute these funds. There is no state income tax or sales tax, and the government primarily funds public services through oil revenue.
The Alaska Permanent Fund was designed to ensure that all residents, rather than just corporations or the state government, benefit from the wealth generated by the state’s vast oil and mineral resources.
Because Alaska has a small population of just over 600,000 people, the government can afford to distribute these payments widely. Instead of limiting the stimulus to low-income households, almost every eligible Alaskan receives a share, regardless of financial status.
Alaska’s Economic Advantages—and Challenges
Alaska provides several financial advantages to its residents. Without sales tax, Alaskans save money on everyday purchases, and with no state income tax, workers keep more of their earnings.
The state also offers energy subsidies to help offset the high cost of heating, a necessary benefit in a region that experiences some of the harshest winters in the United States.
Additionally, Alaska is one of only nine states that does not tax retirement income, making it an attractive place for retirees looking to keep more of their savings.
However, despite these financial benefits, Alaska faces economic challenges. The state’s remote location leads to a higher cost of living, as most goods must be imported.
Essentials such as groceries, fuel, and consumer products tend to be significantly more expensive than in the lower 48 states. Furthermore, job opportunities are limited, as much of the state is composed of wilderness, with fewer industries compared to more urbanized regions.
For now, eligible residents can mark March 20, 2025, on their calendars as payday—another year of Alaska sharing its wealth with its people.
