/images/2023/09/14/woman_using_laptop.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
:format(webp)/images/2026/05/13/alaska-permanent-fund-dividend.png)
/authors/chris-lewis-headshot.jpg)
/authors/andrea_basse_headshot.jpg)
Add Us On Google
Every fall, more than 600,000 residents of Alaska receive a check from the state government. In 2025, that check was $1,000 per person, with children qualifying the same as adults.
This isn't a stimulus program or a one-time rebate. It has been happening every single year since 1982. And there's nothing else quite like it in the United States.
There's no easier way to make money from home than having the government pay you for living in the state. Here's the story and the process behind why Alaskans get government money every year.
Now Available: The Definitive Guide to Retirement Income
Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.
That is exactly what The Definitive Guide to Retirement Income helps answer.1 <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here ›
The fund behind the check
The money comes from the Alaska Permanent Fund, a constitutionally established sovereign wealth fund created in 1976 after oil began flowing through the Trans-Alaska Pipeline.
Alaskans voted 75,588 to 38,518 to amend the state constitution, requiring that at least 25% of all mineral lease royalties be deposited into a permanent savings account, protected from day-to-day government spending.
How it started
The idea was straightforward. Oil is a finite resource. Once it's gone, it's gone. Rather than spend the windfall immediately, Alaskans wanted some of that wealth set aside for future generations.
The fund received its first deposit of $734,000 in February 1977. Over the next four-plus decades, it grew into one of the world's largest sovereign wealth funds. Today, the Alaska Permanent Fund sits at over $86 billion, invested across equities, fixed income, real estate, and private assets. It has become the state's single largest source of general revenue, funding between 50% and 60% of state operations in a typical year, which is more than oil taxes themselves.
The annual dividend
The Permanent Fund Dividend program (PFD) began in 1982, distributing a share of the fund's investment earnings back to every eligible Alaskan each year. Each qualifying resident receives the same amount, regardless of income, age, or background. A retired teacher and a newborn infant both get identical checks.
In 2025, the Alaska Department of Revenue confirmed the PFD at $1,000 per person, with payments beginning Oct. 2. The amount was set directly by the Legislature through House Bill 53, a break from the historical formula that calculated dividends based on a five-year average of the fund's net income.
Released: The Definitive Guide to Retirement Income (Sponsor)
Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan.
That is exactly what The Definitive Guide to Retirement Income helps answer.1 <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn More Here ›
Historical payments
Paying a $1,000 dividend to all recipients costs $685.3 million, the third-largest single line-item in the state budget, behind only education and health care.
The 2025 amount was on the low end historically. The 2024 payment was $1,702 (which included an energy relief supplement). In 2022, the payout hit a record $3,284 per person, combining a base dividend of $2,622 with a $662 one-time energy relief payment passed by the legislature in response to surging fuel prices.
In nominal terms, the 2025 $1,000 check was the lowest in five years and, adjusted for inflation, the smallest in the program's history.
Who qualifies
Eligibility is straightforward but strict. According to the Alaska Department of Revenue's official eligibility page, residents must have:
- Lived in Alaska for the full prior calendar year (Jan. 1 through Dec. 31).
- Intended to remain an Alaska resident indefinitely at the time of application.
- Not claimed residency in any other state or country during that period.
Children qualify on the same terms, with applications filed by a parent or guardian. Applications are accepted online or by paper from Jan. 1 through March 31 each year, with earlier filings processed first.
The dividend is taxable
Alaska has no state income tax, so residents owe nothing to the state on their PFD. However, the dividend is taxable income at the federal level.
Recipients receive a 1099-MISC and must report the payment on their federal return (The energy relief portion of the 2022 PFD was a notable exception as the IRS separately ruled that the $662 energy relief component did not need to be reported as taxable income).
What's next for 2026
The 2026 PFD remains in political flux. The Alaska House passed a draft budget on April 13, 2026, that included a $1,500 dividend, which House Finance co-chair Rep. Andy Josephson framed as a "sustainable" payment.
However, the Senate Finance Committee subsequently proposed reducing the PFD to $1,000, with a potential $150 energy-relief supplement, matching last year's check. The final amount depends on negotiations between the two chambers before the legislative session closes in late May.
Bottom line
Alaska's Permanent Fund Dividend is the only program of its kind in the United States. It's a guaranteed annual check cut to every eligible resident, funded by oil wealth rather than tax dollars. For a family of four, that's been anywhere from $4,000 to over $13,000 in a single October deposit, depending on the year.
Alaska is the fifth most expensive state, driven by high grocery prices, high heating costs, and the logistics of supplying a remote state. Groceries run 27% more than in the Lower 48, and winter heating bills are also incredibly high. The PFD doesn't fully offset those costs, but it provides a reliable, predictable annual cushion to eliminate some money stress.
What makes it especially notable is what it isn't: means-tested, politically controversial in its existence, or dependent on employment status. Alaskans across the income spectrum get the same check. That universality is exactly why economists keep pointing to it as the only working model of basic income in America.
More from FinanceBuzz:
- Retire like the rich: 14 ways you could build wealth in your 50s.
- Find out if you could pay less for car insurance in just a few clicks.
- Make these 7 savvy moves when you have $1,000 in the bank.
- 14 moves seniors could benefit from but often forget about.
/images/2021/04/21/adobestock_192812280_1200x628.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
/images/2025/01/28/adobestock_628402894_1.jpeg)
/images/2024/09/04/adobestock_669069249_editorial_use_only_1.jpeg)
/images/2020/03/02/tattoo-woman-bar.jpeg)
/images/2020/12/21/smiling-couple-looking-at-laptop-screen.jpeg)
Intro Offer
UNLIMITED CASHBACK MATCH: Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. Click Apply Now to view important rates and disclosures. Plus, receive a $200 statement credit when you spend $500 on purchases in your first 3 months of account opening
Annual Fee $0 Why we like it
/images/2025/01/23/discover_it_cash_back_card_art_gold.png)
/images/2025/02/04/person_using_card_in_atm.jpg)
/images/2020/06/29/pensive-woman-looking-at-laptop-screen.jpeg)
/images/2025/09/06/senior-man-looking-worried-while-holding-credit-card.jpg)
/images/2024/01/01/joyful_senior_going_to_movies.jpg)
/images/2024/09/21/cellphone_with_ramsey_logo.jpg){kind=logo}
/images/2025/03/22/stressed_about_credit_card_debt.jpg)
/images/2026/05/22/warren-buffett_1.jpg)
/images/2026/02/20/growing-wealth-pile-of-coins-growing-adding-money.jpg)
/images/2026/08/17/woman-in-her-70s-looking-through-the-window.jpg)
/images/2023/09/21/senior-couple-spending-time-in-park.jpeg)
