The Alaska Department of Revenue announced that the Permanent Fund Dividend (PFD) for 2025 will be $1,000 per eligible resident, the lowest amount in five years and a decrease from the preliminary established $1,702 amount.
This annual payment, funded by oil royalties, will begin distribution on October 2 for direct deposits, followed by paper checks on October 23 and additional payments on November 20 for late applicants. In a state with a high cost of living, this reduced check—down from $1,702 in 2024, as we said before—has sparked criticism.
PFD stimulus check: Alaska slashes oil wealth dividend
The PFD comes from the Permanent Fund, created in 1976 to invest 25% of oil royalties in a portfolio that today exceeds $80 billion. Since 1982, it distributes a portion of the profits annually to residents, a concept devised by former Governor Jay Hammond.
The initiative shares oil wealth and prevent resource mismanagement. In prosperous years, such as 2015, the PFD reached $2,072; in 2022, it reached $3,284. However, since 2016, the legislature has limited payments to cover budget deficits, prioritizing services such as education and health care.
This year, the statutory amount of $3,892 was cut to $1,000, a decision signed by Governor Mike Dunleavy, who defended the need to protect the main fund.
Who’s eligible for the PFD checks
To be eligible, a resident must have lived in Alaska throughout 2024, with no serious felonies or claims of residency in another state. Applications, which closed on March 30, were processed mostly online, with 90% opting for direct deposit.
This year, the PFD will inject about $685 million into the economy, benefiting more than 600,000 people, including children and the elderly, without federal taxes. However, the reduced amount limits its impact.
Economically, the PFD is a proven stimulus. Studies from the University of Alaska estimate it reduces poverty by 20% to 40%, especially in rural and indigenous communities.
An analysis in the American Economic Journal refutes that it discourages work, showing only a slight increase in part-time jobs. Local businesses—supermarkets, workshops, and stores—see an upturn after the payments. During the pandemic, the PFD, combined with $1,200 federal checks, sustained businesses in remote places like Bethel. But in 2025, with just $1,000, the effect will be less.
Now anyone is happy with the $1,000 stimulus check
The cuts have sparked discontent. An online petition on the Alaska Watchman website, with more than 11,000 signatures, calls for the full PFD to be restored. On Reddit forums, an Alaskan man commented: “We’ve been owed thousands since 2016. This is theft.”
According to estimates, the cuts since that year have deprived each resident of an accumulated $13,000. In a state where 12% of the population lives in poverty—double the national average—and where 40% of Native American households rely on the PFD, this check is urgent. “It pays for a heating bill or two months of food, but no more,” says Holly Olsen, a cashier in Anchorage, to local news media, where a gallon of fuel is very expensive.