Alaska residents will soon receive a financial boost as the Permanent Fund Dividend (PFD) and a one-time energy rebate are set for distribution in 2025. The payments, drawn from the state’s oil and gas revenue fund, will provide eligible Alaskans with $1,702—a significant increase over previous years.
what is the Permanent Fund Dividend?
The Permanent Fund Dividend (PFD) is an annual payment distributed to Alaskan residents from the state’s oil wealth. Established to ensure that all citizens benefit from Alaska’s natural resource earnings, the PFD is available only to residents who have lived in the state for at least one full calendar year.
For 2025, the PFD payment has been calculated at $1,403.83, sourced from a massive $914.3 million fund reserve. Combined with an additional $298.17 energy relief check, the total amount each eligible resident will receive is $1,702—more than $400 higher than last year. The payout will support over 600,000 Alaskans, offering much-needed economic relief.
eligibility requirements
While the PFD program is open to most Alaska residents, there are strict requirements for eligibility:
- Applicants must be registered residents of Alaska and have lived in the state for the full calendar year before applying.
- Individuals must intend to remain in Alaska after applying and must not have shown intent to move elsewhere.
- Applicants must have spent at least 72 consecutive hours in Alaska within the past 24 months.
- Anyone convicted of multiple misdemeanors since 1997 or a felony in the past 12 months is not eligible.
These conditions help ensure that the PFD benefits permanent residents rather than short-term visitors or those who have left the state.
how the dividend was calculated
Governor Mike Dunleavy initially proposed a $3,500 dividend, but lawmakers approved a reduced amount of $2,300 in April. This decision helped cut the state’s projected deficit from $1 billion to $270 million.
A 72-25 formula was used to determine the final payout, with 75% of the PFD’s earnings allocated to state services and 25% directed to dividends. Lawmakers also approved an additional $300 boost to the payments, thanks to unexpected gains from higher oil revenues.
tax implications and payment schedule
The 2025 PFD payments are set to begin in October, with direct deposits processed first, followed by mailed checks. Tax obligations differ based on the source of the funds:
- The $1,403.83 PFD payment is subject to federal taxes.
- The $298.17 energy rebate is tax-exempt, as it is classified as relief assistance rather than taxable income.
With rising costs of living putting pressure on Alaskan households, this year’s PFD payout offers critical financial relief. A combination of strong oil revenue and fewer applicants has allowed for a larger-than-expected increase, providing residents with a much-needed economic boost.
