Residents of Alaska are getting ready to receive yet another significant boost as the state intends to issue the 2025 Permanent Fund Dividend Disbursement of 1702 dollars per eligible person. This payment is more than free money, it is Alaska’s way of sharing the oil wealth of the state with its citizens and has been a financial second aid to families for decades.
The 2025 dividend is split into two parts. A base amount of 1403.83 dollars based on the investment earnings and an energy relief bonus of 298.17 dollars aimed to help counter rising utility costs. Considering Alaska’s brutal winters and the remote location of many of its towns, this assistance is a godsend for many households struggling with financial burdens.
Understanding Alaska’s Oil Money Legacy
The Alaska Permanent Fund started in 1976, when the state’s leaders decided to invest oil revenues for the future. Now The Alaska Permanent Fund Corporation manages this massive portfolio of stocks, bonds, and real estate investments. About 5% of the fund’s earnings are distributed on a yearly basis in the form of dividend payments.
What distinguishes Alaska is this direct profit-sharing model. Other states may spend oil revenues on public expenditures, but Alaska makes sure every qualified resident receives a share. To put it simply, “this belongs to all of us,” is the state’s reasoning.
Payment Timeline and Eligibility Requirements
The distribution follows a staggered schedule based on application status. The first wave of payments for those who checked their status by April 9 is available on April 17, 2025. Additional payments occur in May and August, providing multiple opportunities for residents to access their funds.
Meeting the requirements for dividend allocation entails more than just claiming an Alaskan address. Permanent residency status must be coupled with physically residing in Alaska for the entire 2024 year, and spending a minimum of 72 consecutive hours in the state sometime in 2023 or 2024. Various criminal convictions and lengthy absences can make applicants ineligible, although military service and medical leave are exempted.
Important Tax and Application Details
Unlike state taxes, the federal government considers PFD payments taxable income. Taxes due on PFD income are not comparable to state taxes, and Alaskan residents are federally taxable. All recipients, including children who are issued PFDs through their SSNs, are required to report the full amount as income on their tax returns.
The application process is facilitated through pfd.alaska.gov, where users create myAlaska accounts and upload relevant paperwork. Failing to meet the April cutoff means there’s no application in the subsequent year—one has to wait until the next year to apply.
For numerous families in Alaska, this payment is indispensable in alleviating the burden of daily expenses and even enables families to save and invest.
