Alaska is a state with immense natural resources. It has such mineral wealth that a program unique in the world was created: the Permanent Fund Dividend (PFD). This system ensures that every eligible resident receives a direct share of this mineral wealth. And the next round of direct payments to Alaska residents will take place very soon, on Thursday, December 18, 2025. The PFD Division has confirmed that this payment will be $1,000.
Compared to last year’s $1,700, this round of payments sounds a bit meager.
What is the PFD? How does it work?
It is a cash payment distributed equally to every resident of Alaska, regardless of age or income level. Unlike many other programs, it is not financed by state taxes but by federal funds. Its source is the Alaska Permanent Fund (APF), created in 1976 to act as a perpetual savings account for future generations of Alaskans.
By law, 25% of all mineral resource revenues—primarily oil royalties—must be deposited into this fund. The PFD (the payment itself) was introduced between 1980 and 1982 by then-Governor Jay Hammond. His aim was to transform the non-renewable wealth of oil into a financial resource that could be reinvested in the area. He also wanted to give every citizen a personal and direct share in Alaska’s wealth.
Why does the PFD amount vary so much?
This has been a controversial issue for years. According to the original formula, the dividend paid out should be based on the average return on investment of the fund over the last five years. However, since 2018, the state legislature has ignored the original formula. They have not done so out of malice, but to avoid depleting the state’s remaining revenue reserves, which they use to fund essential public services for the government of Alaska.
If the original formula had been applied in 2025, the payment would have been estimated at over $3,000. As we have already mentioned, last year’s payment was $1,702, a hybrid amount that included a base PF payment plus an energy relief supplement.
The debate has kept us waiting; there are those who advocate for payment based on the original formula… And other residents who prioritize state funding through these same funds. It is a question of “bread today, hunger tomorrow.” If the remaining investment funds are liquidated, we will ultimately have to pay taxes to maintain the Alaska government and public services, which would be like killing the goose that lays the golden eggs. Lean times are coming, and the egg that each resident gets will be a little smaller than usual.
How to be eligible for PFD
The requirements for receiving this payment are quite strict and designed to ensure that only permanent residents of Alaska receive it. To receive this payment in 2025, you must have been present in Alaska for the entire previous year. In addition, you must not have claimed residency in another state or country since December 31, 2023.
You also cannot have been absent from the state of Alaska for more than 180 days in 2024, unless it was for a permitted reason (such as active military service or college studies).
You also must not have been incarcerated for a felony or certain repeat misdemeanors during 2024.
Finally, you must have been physically present in Alaska for at least 72 consecutive hours during 2023 or 2024.
PFD FAQs
Is it a Federal “Stimulus Check”?
No. The PFD is an Alaska state program. It is funded by investment earnings from the Permanent Fund, a sovereign wealth fund derived from state oil revenues.
Do I have to apply for the PFD every year?
Yes. To be considered eligible, you must submit an application (electronic or paper) each year between January 1 and March 31. So you are running late for this year, but you can apply for next year soon.
Is my child also eligible?
Yes. Every resident, including children, receives the full and equal payment—as long as they are eligible. Their parent or legal guardian must submit the application on their behalf.