Alaska residents have the opportunity to apply for new stimulus payments, officially known as the Permanent Fund Dividend (PFD). Funded by the state’s oil revenues, this annual payout provides financial support to eligible Alaskans. If you’re a resident, now is the time to submit your application before the March deadline.
However, the final amount of this year’s payment is yet to be confirmed. Here’s what you need to know.
Payout
Alaska Governor Mike Dunleavy has proposed that each resident receive around $3,900. However, this amount depends on legislative approval and state budget considerations.
To meet this payout, the state would need to withdraw over $1.5 billion from the Constitutional Budget Reserve, a key non-permanent savings account.
If lawmakers follow the more recent funding formula, which allocates 25% of the state’s annual drawdown from the Alaska Permanent Fund, the PFD would be around $1,400 instead.
Fund
The Alaska Permanent Fund Dividend (PFD) was established in 1976 to distribute a share of oil revenues to residents. The payout changes yearly based on oil profits, state investments, and economic conditions.
Historically, the PFD amount fluctuates. In 2022, Alaskans received a PFD check of $3,284, which was significantly higher than the 2023 amount of $1,312. The 2024 PFD was set at $1,702, and the estimated amount for 2025 is expected to range between $1,702 and $3,900, depending on state budget decisions.
Economy
The PFD stimulus checks play a vital role in Alaska’s economy. Many residents use their payments to cover daily expenses such as rent, mortgage payments, energy bills, and groceries. Others use the funds for medical expenses, tuition fees, or school supplies.
Some Alaskans choose to save a portion of their PFD for future financial security. However, debates continue over whether residents should receive larger payments or if some of the oil revenue should be redirected to essential services like education and healthcare. Lawmakers are also considering the long-term sustainability of these payouts.
Eligibility
To qualify for the 2025 PFD stimulus check, you must be an Alaska resident for the entire 2024 year. Those who have been absent from the state for more than 180 days will not be eligible unless their absence is for an approved reason such as military service, education, or medical treatment.
Applicants must also have no felony convictions within the past year. These requirements help ensure that the PFD benefits long-term residents who contribute to the state’s economy and community.
Applications for the PFD opened on January 1, 2025, and will close on March 31, 2025. Late applications will not be accepted, so it’s important to apply before the deadline.
Payment
For those approved, PFD stimulus checks will be deposited in October 2025. The payment will be directly deposited into bank accounts for those who selected direct deposit, while others will receive physical checks by mail.
It’s important to note that the IRS considers PFD payments as taxable income, so recipients should be prepared to report their payout when filing their taxes.
The PFD remains a crucial financial resource for Alaskans, and this year’s payments could provide a much-needed boost. If you’re eligible, be sure to apply before the deadline.
FAQs
How much is the 2025 PFD?
The estimated amount ranges from $1,702 to $3,900.
When is the PFD application deadline?
The deadline to apply is March 31, 2025.
When will PFD payments be issued?
Payments are expected to be deposited by October 2025.
Are PFD payments taxable?
Yes, the IRS considers PFD payments as taxable income.
Who is eligible for the PFD?
Alaska residents who lived in the state for all of 2024 and meet other criteria.
