If you’re a resident of Alaska, now is the time to apply for new stimulus checks that could be deposited into your bank account after the application process in March. The annual Permanent Fund Dividend (PFD) is funded by the state’s oil revenues, providing essential financial support to residents.
However, the exact payout each Alaskan will receive from this year’s oil wealth distribution has yet to be determined.
What has Mike Dunleavy said about these payments?
Alaska Governor Mike Dunleavy has proposed that each resident receive approximately $3,900, though the final amount will be determined during the legislative session. To fund this payment, over $1.5 billion would need to be withdrawn from the state’s primary non-permanent savings account, known as the Constitutional Budget Reserve.
Dunleavy’s plan is based on an older formula that hasn’t been applied in more than a decade under state law. If lawmakers opt for a more recent approach—allocating 25% of the state’s annual drawdown from the Alaska Permanent Fund—the Permanent Fund Dividend (PFD) would instead be around $1,400.
More about the Alaska Permanent Fund Dividend
The PFD is set to be a fund provided to eligible Alaskans residents from the state’s oil revenue profits. The Alaska Permanent Fund Dividend was established back in 1976 in an attempt to share some of the state’s resources with citizens.
The PFD rate provided to Alaskans changes yearly based on factors such as oil revenues and state investments. The 2024 PFD amount was higher than the 2023 PFD amount. However, the estimated PFD amount for this year is the same as the 2024 amount and still considerably lower than the 2022 PFD amount.
What does these PFD checks do for the Alaskan economy?
The new $1,702 stimulus checks paid to citizens has considerable economic benefit. With the PFD checks, residents can take care of everyday expenses. Alaskans can also use the PFD checks to take care of rent, mortgage payments, or energy bills. Alternatively, PFD checks could even be used to take care of medical costs, tuition expenses, or cover the cost of school supplies.
Many Alaskans are advised to save a portion of their PFD checks in order to cater for future needs.
With several advantages to PFD checks, it is assumed there are no debates regarding the viability of these checks. The argument that is often brought up is whether Alaskans should receive larger payouts from the state’s oil wealth. At the same time, suggestions are made that rather than providing direct funds, the PFD should be used in the healthcare and education sectors. Legislators are further concerned about how sustainable these PFD checks are in the long run.
Who will be getting these new Stimulus Checks that will be hitting bank accounts?
To be deemed eligible for the PFD stimulus check, the person applying to claim should be an Alaskan resident for the full 2024 year. People who are away from Alaska for more than 180 days are in no way eligible to receive the stimulus checks. If the person, however, left Alaska for an approved reason such as for military service, education, or medical treatment, then they will not be excluded from receiving these PFD checks. People who have committed felonies in the last year would not be deemed eligible for receiving these stimulus checks.
According to the official Alaska Department of Revenue website, Alaskans are still able to apply for these stimulus checks as the application period is between January 1 to 31 March 2025. Late applications will, however, not be accepted.
For those who will be receiving these PFD stimulus checks, they can expect their payments by October 2025. The Internal Revenue Service (IRS) still considers the PFD stimulus checks to be taxable income, so keep that in mind too.
