The Permanent Fund Dividend, also known as PFD program, financed by Alaska’s natural resources, continue to be one of the state’s most important economic bases, offering residents a direct share of the revenue generated by its natural resources, in a form of stimulus checks they can use without any restriction.
In 2025, the approved stimulus check for each beneficiary is $1,000, a figure that, although significant, marks one of the lowest amounts in the last decade. The decision has sparked ongoing debate between those who advocate for a broader distribution and those who prioritize the fund’s long-term fiscal stability.
Origin and purpose of Alaska’s PFD stimulus checks
The PFD program was established in 1982 as a way to share the benefits of oil exploitation and other investments. The Permanent Fund of Alaska, a sovereign wealth fund created in 1976.
Its objective is to distribute a portion of the fund’s annual profits to all permanent residents of the state, thus reinforcing the idea that natural resources belong to the community as a whole.
Each year, the Department of Revenue (DOR) calculates the amount based on an average of the fund’s earnings over the past five years, adjusted for inflation and reserves. For more than four decades, the program has been a symbol of Alaska’s “citizens’ dividend,” providing each resident with a payment that varies depending on the state government’s financial results and budget decisions.
PFD stimulus checks amounts have been changed
According to the official announcement of the Department of Revenue, issued on September 22, 2025, the amount of the PFD 2025 was established in $1,000 dollars per person. This amount is considered modest compared to the $1,312 delivered in 2023 and the $1,702 of 2024, which included an additional energy relief component in the face of rising fuel prices.
The downward adjustment is due to several factors, including the decline in oil revenues, the poor performance of the fund’s investments during the last fiscal year, and the state government’s decision to retain a larger portion of revenues for the general budget.
Dates and payment schedule: October and November rounds
The 2025 payment schedule was also confirmed by the Department of Revenue. Those residents who applied electronically, selected direct deposit, and were classified as“Eligible Not Paid” before September 18, 2025, received their deposit on October 2, 2025.
On the other hand, those who sent paper applications or requested payment by physical check, and whose status is“Eligible Not Paid” by October 13, will receive their dividend on October 23, 2025. This tiered scheme seeks to ensure more efficient processing by prioritizing those who used the state’s digital system.
What’s the paperwork to claim the check?
All the payment are issueded directly from the Permanent Fund Dividend Division and does not require any additional paperwork if the application was approved before the deadlines.
However, the official website pfd.alaska.gov recommended that you periodically check the status of your application to avoid delays or inconsistencies in your banking information.
Now, are there any tax consideration? Although Alaska does not impose a state income tax, the PFD is subject to federal tax rules. Internal Revenue Service (IRS) this payment is considered taxable income, meaning it must be included in the annual tax return.
This also applies to the portion corresponding to children or dependents, whose parents must report the amount on their tax returns if the dividend is assigned to them. In 2024, the IRS issued a clarification stating that both the dividend and the energy relief component of the PFD must be reported as regular income, without distinction between the two parts.
For 2025, this rule remains in effect, so beneficiaries must include the $1,000 in their Form 1040 or in the corresponding declaration.
