Since 1982, the Alaska Permanent Fund Dividend (PFD) has helped thousands of residents by giving them a share of the state’s oil wealth. Funded by oil royalties and managed by the Alaska Permanent Fund (APF), the PFD is seen as one of the best examples of a universal basic income model in the United States. In 2024, over 600,000 Alaskans received their payment, showing the program’s strong success.
Let’s look at what to expect in 2025, who is eligible, how much you might receive, and what challenges the program faces ahead.
A Quick History of the Alaska Permanent Fund
The Alaska Permanent Fund was created in 1976 after the discovery of oil at Prudhoe Bay. Governor Jay Hammond promoted the idea to save the state’s oil earnings for future generations instead of spending everything quickly.
Today, the Fund has two parts:
- The Principal, which is protected by the constitution and cannot be touched.
- The Earnings Reserve Account (ERA), which collects investment profits and is used to pay out the PFD.
In 2024, the fund grew to a huge $83 billion, showing strong financial management over the years.
How Much Was the PFD in 2024 — and What to Expect in 2025?
In 2024, each eligible Alaskan received a payment of $1,702, which also included an energy relief supplement due to rising energy costs. The amount is based on 50% of the Fund’s earnings.
For 2025, while the exact amount will be confirmed later, early estimates suggest that payments could be similar — or slightly lower if oil revenues decline or investment returns are weaker.
The PFD has had a big impact over the years. Studies by the University of Alaska show it has reduced poverty by 20% since 1990. Rural and Indigenous communities benefit the most. In 2024 alone, the PFD pumped $914 million into Alaska’s economy, boosting sectors like tourism, shopping, and local services.
Who Is Eligible for the Alaska PFD?
To receive the PFD payment, you must meet a few important conditions:
- You must have lived in Alaska for the entire previous year.
- You must plan to continue living in Alaska permanently.
- You must not have been absent from the state for more than 180 days (except for students, military service, or medical treatments).
- Minors must have a resident sponsor, usually a parent.
- People with recent criminal convictions may be disqualified.
How to Apply for the PFD 2025 Payment
The application process is simple, but the deadline is strict:
- Deadline: March 31, 2025
- How to apply:
Online via the myPFD portal
By mail
At authorized offices across Alaska
Payment dates:
- Direct deposits will start on October 3, 2025.
- Physical checks will be mailed beginning October 26, 2025.
A word of caution: scammers have been using fake text messages pretending to be from the myAlaska system. Always use official websites or trusted sources to manage your application.
Is the PFD Taxable?
Yes, the PFD payment is taxable at the federal level. It must be reported on Form 1040, Schedule 1. In 2024, even the energy relief portion was considered taxable income.
If there are mistakes in your Social Security number or other records, the IRS may automatically withhold 24% from your payment. It’s a good idea to check with a tax advisor if you have special cases, like claiming dividends for dependent children.
Will the PFD Continue in the Future?
Although the PFD has strong public support (75% approval in 2024), there are ongoing debates. Some lawmakers want bigger payments, while others argue that public services should come first.
In 2021, the Alaska Supreme Court ruled that the legislature has the authority to adjust PFD amounts. Experts believe that if reforms are not made, the yearly dividend could fall to around $1,200 by 2030 due to falling oil revenues and rising costs.
Even so, for now, the PFD remains a valuable and celebrated program for the people of Alaska.