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Alaskans are receiving $1,000 cheques; Here’s why

A sign advertising the cashing of Alaska Permanent Fund Dividend, or PFD, checks hangs outside a business in Anchorage, Alaska, Tuesday, Sept. 23, 2025. (AP Photo/Mark Thiessen)

AP- The truck that arrived ahead of schedule at Allyssa Canoy’s home in Fairbanks brought enough heating fuel for the frigid winter months ahead — and a surprise bill for $2,600.

Canoy and her two sons have checks arriving that will cover that expense and leave some money for the boys, too. Starting Thursday, Alaska plans to begin distributing to residents their annual dividend derived from the state’s $83 billion oil wealth fund, a sort of bonus that Alaskans get for living in the state.

For some, it’s extra spending money for a new set of tires or a vacation to a sunnier clime during the long, dark winter. For others, it’s a vital supplement in a state where the cost for internet service, gas and groceries can be sky-high.

Here’s what to know about the Alaska Permanent Fund dividend:

This year’s payout is one of the lowest in 20 years

Alaskans are getting $1,000 per person — the lowest amount since 2020, when they each received $992. The payout has been below $1,000 only two other times since 2006.

There used to be a formula for calculating the amount, tied to the fund’s market performance. But lawmakers widely consider that formula unaffordable and within the last decade have abandoned it.

Politicians now set the amount. It’s often one of the last items settled during sensitive budget negotiations. Lawmakers must weigh the check’s size against other programs and public needs, including education, and in 2018 began using earnings from the fund — long used to pay dividends — to also help balance the budget.

This year, $1,000 is what lawmakers argued they could afford while also backing an increase in K-12 funding and trying to limit draws from savings.

Had the old formula been followed, residents would be getting about $3,800 each.

The Alaska Permanent Fund is nearly 50 years old

Voters created the fund in 1976, during the heady, early years of oil in the state. The goal was to save some of Alaska’s mineral wealth. The fund has grown through investments, and while the state constitution protects the fund’s principal, its earnings can be spent.

Dividends have been paid since 1982. Proponents saw them as a way to ensure Alaskans maintained a vested interest in the Alaska Permanent Fund.

More than 600,000 of Alaska’s roughly 740,000 residents are set to receive this year’s check. To qualify, one must meet residency and other requirements.

Three times, including last year, Alaskans received an energy relief payment along with their dividends, according to the state.

Plenty of ways to use the money

For some Alaskans, the check is a nice extra. Some put it into college funds or savings accounts or donate to charities. Others rely on it for necessities, such as heating oil, winter tires or snowmachines, which are critical modes of transportation in rural villages where residents rely on hunting or trapping.

Canoy, a single mom of two, is selling her home and downsizing. She had planned to fill her home’s fuel tank as a gift to the new buyers at closing, but the fuel truck came early while she was away. So instead of putting the $3,000 her family is receiving toward other projects, as she’d hoped, she’s using it to pay that bill. She plans to let her sons spend the remaining $400.

Canoy said she lives comfortably and sees the dividend as a blessing. Still, she wishes lawmakers would find a better way to set the amounts — “at least to just give Alaskans maybe a little peace of mind that, yeah, we’re actually doing everything that we can to make sure that you guys get the most out of the permanent fund dividend.”

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Alaska’s 2025 Permanent Fund dividend will be $1,000 and arrives starting Oct. 2

By: James Brooks, Alaska Beacon

 People line up outside of the downtown Anchorage Permanent Fund Dividend office on March 31, 2023, the last day to submit applications. (Photo by Yereth Rosen/Alaska Beacon)

This year’s Permanent Fund dividend will be $1,000, an amount set by the Alaska Legislature in House Bill 53, the state’s annual operating budget bill, earlier this year.

Ordinarily, lawmakers allocate an amount of money for the dividend, which makes individual payments dependent upon the number of recipients. 

The Alaska Department of Revenue then announces the final amount in September.

This year, lawmakers set a specific dividend amount, which turned the Alaska Department of Revenue’s fall announcement, released Friday, into an anticlimax.

Alaskans whose PFD applications were filed electronically, whose applications were approved as of Sept. 18, and who requested direct deposit, will begin to receive their payments Oct. 2. 

Those whose applications are approved by Oct. 13 will receive their dividends starting Oct. 23.

That includes people who applied for the dividend on paper forms or requested paper checks.

Paying a $1,000 dividend to all recipients was expected to cost $685.3 million, making it one of the largest single expenses in Alaska’s annual state budget.

Only the Alaska Department of Education and Early Development ($1.4 billion) and the Alaska Department of Health ($1.1 billion) are more expensive.

The 2026 dividend is expected to be larger, if lawmakers agree to spend from the state’s Constitutional Budget Reserve. 

Since 2020, lawmakers have approved larger dividends in election years than in non-election years.

The Alaska Permanent Fund, an $83 billion state trust fund, is the largest source of general-purpose revenue for state services, paying for between 50-60% of state operations in an ordinary year. Oil revenue, by comparison, supplies only about a third of state revenue. 

Since 1982, a portion of the fund has been paid out to Alaskans in an annual dividend. The payment was set by formula until 2016, when lawmakers — facing severe budget shortfalls — began setting it by fiat. The formula remains in state law, but legislators are not obliged to follow it.

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Former Alaska House Speaker reflects on legislative process, State and Federal issues in memoir

Jim Duncan portrait

NOTN- Jim Duncan, a former Alaska House Speaker and longtime labor leader, is looking back on more than four decades in public life in a new memoir he says shows how politics is a lot like making sausage.

Duncan, who served in the Legislature from the 1970s through the 1980s eventually becoming Speaker of the House. Over that time, he sponsored dozens of bills and says he learned that compromise was the only way to get things done.

Duncan also lead Alaska’s largest public employee union and said his book Making Sausage aims to put Alaska’s political issues into perspective, he says much of what was covered in the 70s and 80s is still applicable today.

“It was a long process, but it was worthwhile in my mind, because it really brought me back to how important the issues are that we were addressing and how those issues are still alive today.” Said Duncan, “The one thing I mentioned in the book is that it’s, about history, but it’s not ancient history, because what we did when I was serving in the legislature and after, are still alive today, those issues still need to be addressed. And I hope that there will be some encouragement given to some folks too, if they read this and say, Okay, let’s get busy and try to resolve these issues. They need to be done.”

Duncan recalled sifting through nearly 20 boxes of legislative files to piece together the book, which details his work on oil taxes, education, and labor negotiations.

He said one of his proudest achievements was securing finality in collective bargaining for school employees, a fight that spanned 15 years.

“Education funding has been at the top of the list for past legislators and legislators for a number of years.” Duncan said, “You know, we didn’t adequately address it when I was in the legislature. We tried to, and we put together a foundation, a formula program, but unfortunately, that hasn’t been kept up to date, and there hasn’t been adequate funding. And we complain about our schools and the fact that we don’t think that they’re providing a good education, but we’re asking our teachers to do more with less. There’s less teachers. The classroom sizes have increased. They’ve got to bring in their own supplies, so it’s very difficult.”

Locally, he pointed to helping secure funding for the University of Alaska Southeast library, which he argued cemented the campus’ future in Juneau.

Much of Duncan’s book also revisits Alaska’s battles over oil taxes, a debate he said shaped his career and even led to his removal as House Speaker.

“You know, the fact that the state doesn’t have a long-term fiscal plan, so we can really clearly set our goals and attain those, it’s got to be resolved.” Said Duncan, “And the one reason that hasn’t happened is because, so far, when they talk about creating fiscal plan, what they look at is decreasing spending and increasing the permanent fund dividend, but they forget about the fact they need more revenues, and unfortunately, revenues, the ones that we can get would come from oil companies.”

Duncan said that Alaska’s state issues like education and state funding are also federal issues.

“Education is being attacked with the current administration, the Department of Education is being decimated, and they’re reworking the way that the federal government helps provide education, health care is under attack, as we know, there’s talks about trying to repeal parts of Obamacare, doing away with Medicaid funding and or reducing it and Medicare, and that’s going to have a tremendous impact.” Duncan said “So the important thing I think here, is that the issues that we were addressing, trying to address years ago, are still alive today and need to be addressed. And I hope that this might spur some if folks read this.”

Duncan spoke on today’s political landscape and expressed concerns on partisanship, “I think Alaska, we do better working on a bipartisan nature than some other states do, and what they do on the federal level.” he said, “I think there’s good ideas on both sides, whether you’re Republican or Democrat. The goal you is to try to bring folks together, and you gotta be willing to accept their thoughts and views. Also, I think unfortunately, on the federal level, that’s not happening. It’s become very strident.”

Duncan also weighed in on the Alaska Permanent Fund Dividend, which he helped establish during his time in office. While he said he supports a larger dividend to benefit rural and low-income residents, he argued it must be paired with new revenue sources, including changes to oil production taxes.

“The challenge is, how do you maintain the dividend, provide government services and see the dividend grow? You know, the dividend has been going down in recent years. It’s going to be the lowest this year than it has been for some time. And in fact, it’s probably the lowest it’s ever been.” Duncan said “The reason is because so much of those earnings needs to be used to help support government services, I support that we should have a larger dividend, because it does a lot of good for people who really need it in rural Alaska and elsewhere, in order to do that, you need to find revenues outside of the permanent fund earnings and outside of the general fund money that’s just generated from other sources.”

Making Sausage is available online through Amazon and Google Books, with audio and additional formats expected soon.