Oil Industry Sends Out $1,702 Stimulus Checks to 600,000 Residents in This State

The Alaska Permanent Fund Dividend (PFD) is one of the most distinctive programs in the United States, designed to share the state’s natural resource wealth with its residents.

Launched in 1976 after the discovery of vast oil reserves on Alaska’s North Slope, this initiative has become a model of how natural wealth can be reinvested to benefit citizens.

Origins of the Alaska Permanent Fund

Following the oil discovery, Alaska voters approved an amendment to the state constitution to preserve part of the oil royalties for future generations.

Instead of spending all royalties immediately, the amendment required at least 25% of these earnings to be deposited into a permanent investment fund.

This idea was championed by Governor Jay Hammond, who aimed to “save for future generations” and ensure that both current and future Alaskans could benefit from the state’s natural resources.

How the Alaska Permanent Fund Works

The fund is managed by the Alaska Permanent Fund Corporation (APFC) and is invested across stocks, bonds, real estate, and private equity. Today, it holds over $80 billion in assets.

A portion of its annual earnings is distributed as dividend payments to eligible residents, helping reduce dependence on income taxes and giving citizens a direct share of the state’s wealth.

PFD Payment Structure and Legislative Changes

Originally, the PFD amount was calculated using a set formula:
21% of the fund’s five-year average net income, divided by two (half for state expenses), minus administrative costs, and then divided among eligible applicants.

However, a 2017 Alaska Supreme Court decision ruled that the state legislature must approve PFD amounts, and the governor can veto them. Since then, the amount has been decided annually through the budget process, balancing state spending needs with dividend payments.

• The first PFD payment was issued in 1982 at $1,000 per person.
• For 2025, the total payment is $1,702, including a $1,403.83 base dividend and a $298.17 energy relief supplement to offset high heating and electricity costs.

Eligibility Criteria for the PFD

To qualify for the 2025 PFD, individuals must:

• Have been an Alaska resident for the entire previous year (2024).
• Intend to remain in Alaska permanently at the time of application.
• Not claim residency or benefits from other states or countries.
• Have been physically present in Alaska for at least 72 consecutive hours in 2023 or 2024.
• Be absent for no more than 180 days per year unless due to approved reasons such as school, work, or military service.
• Not have been incarcerated for a felony in 2024, or for a misdemeanor if convicted of one since 1997.

Eligible applicants include U.S. citizens, lawful permanent residents, and children under 18 (who apply through their parents or guardians).

Applications are accepted annually between January 1 and March 31 through myPFD online or paper forms.

Application Process and Payment Schedule

• Application Fee: There is no fee to apply for the PFD.
• Deadline: March 31, 2025.
• The Alaska Department of Revenue handles about 600,000 applications each year.
• Direct deposit payments began on October 2, 2025.
• Paper checks and later approvals are released after October 13, 2025 and continue in monthly batches.

If you miss the payment, you may still claim it up to four years later. However, if you fail to apply by the March 31 deadline, you must wait until the next application period to qualify.

The Alaska Permanent Fund Dividend stands as a powerful example of how natural resource wealth can be preserved and distributed to benefit future generations.

By saving a portion of oil revenues and sharing the returns with residents, Alaska has created a sustainable model that supports its citizens, boosts the economy, and reduces tax dependency.

For those who meet the eligibility requirements, applying on time ensures they receive their share of this valuable benefit each year.

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