Each year, Alaska shares with its inhabitants a portion of the prosperity generated by the oil industry, through a unique program that distributes a stimulus check. This benefit, established in 1976, allows a fraction of the Permanent Fund’s profits to be distributed among residents. The idea arose so that, from the surpluses derived from oil, the economic well-being of the state’s households could be strengthened.
Since 1983, an annual dividend has been provided to permanent residents of the State of the Last Frontier, the amount of which varies according to the results of the investments and the decisions made by state authorities. By the end of 2024, the value of the fund approached $83 billion, giving an impressive dimension to the amount of resources that can be distributed.
Has the time window to request the PFD stimulus payment closed?
The process is well-structured: every year, applications are received until March 31, with more than 560,000 applications recently registered. Then, in September the amount to be distributed is announced, marking the beginning of a series of payments that extend throughout October. Sometimes, if there are late applications, additional deliveries are made in subsequent months, thus guaranteeing the inclusion of the majority of beneficiaries, which total more than 730,000 people.
The payment is divided into two parts. On the one hand, there is the regular dividend from the Permanent Fund and, on the other, an energy supplement implemented in 2023 to mitigate the impact of the increase in energy costs. For example, in recent years, the total sum included a base dividend along with an extra contribution, which allowed a significant increase compared to previous periods, although always with variations depending on financial performance and the number of applications.
These are the basic requirements to qualify for the PFD fund:
- Applicants must have lived in Alaska for a full year before applying;
- They must have physically remained in the state for at least 72 hours in the last two years
- Additionally, they must not have been convicted of serious crimes in the last year
There are proposals to increase funding for the PFD stimulus program: what are they?
There are several ideas that have been proposed in Alaska to increase funding for the PFD stimulus check program. One of them recommends redirecting public funds towards the PEPPG, prioritizing its financing in the national budget. This would imply adjusting other budget items to strengthen support for small producers.
It has also been proposed to sign agreements with entities such as the Inter-American Development Bank (IDB) or the Food and Agriculture Organization of the United Nations (FAO) to obtain additional financing, but this has not had much support because it would involve new debt.
One of the most discussed is the idea of increasing taxes for the oil industry, but in the past these proposals have been rejected in referendums, by more than 60% of Alaskans, because many people fear that they could scare away companies or stop the arrival of new investments.
