Many residents of Alaska are about to receive a yearly cash benefit from the state’s oil earnings. This program is known as the Permanent Fund Dividend (PFD), and for 2025, each eligible person will receive $1,702. This initiative, running since 1982, aims to fairly distribute the money earned from Alaska’s nonrenewable natural resources like oil.
Let’s break down who can receive it, how it works, when the payments are made, and other important details.
What is the Alaska PFD and Who Can Get It?
The PFD is a yearly payment given to Alaskans as a share of the state’s oil income. The amount for 2025 is $1,702 per person, which is a 3.1% increase from last year’s $1,650.
To be eligible in 2025, you must have:
- Lived in Alaska for the whole of 2024
- Planned to stay in Alaska permanently
- Not been outside the state for more than 180 days (except for reasons like military service or studying)
- No serious criminal records or jail time in 2024
Children can also qualify if their guardians meet these rules. If your application was rejected, you can appeal, but only within the allowed time. However, no details are given yet on appeal deadlines.
Those who missed the application deadline (March 31, 2025) will not be able to apply now and must wait until next year’s cycle.
When Will the PFD 2025 Payments Be Made?
There are two important dates for receiving the PFD in 2025:
April 3, 2025 – For those who applied early and had no issues with their application (direct deposit only).
April 24, 2025 – For applicants whose forms needed extra review.
If you selected to receive a physical check, you might face delays of up to two weeks due to printing and postal processing.
Since 2019, Alaska has promoted direct deposits as they are faster, safer, and cost less. In 2024, around 82% of applicants chose this method.
How is the PFD Amount Calculated?
The PFD amount is decided using a formula introduced in 2016. It uses:
- 21% of the state’s mineral (mainly oil) income
- Investment returns from the Alaska Permanent Fund
As of December 2024, the Alaska Permanent Fund holds $73.2 billion. The average oil revenue from the past five years is used to set the final dividend.
How Will the PFD Benefit Alaska’s Economy?
Experts say that in 2025, the total PFD payout will bring $1.2 billion into Alaska’s economy. This money will mostly help local businesses, shops, and tourism.
For many rural families in Alaska, especially in underdeveloped areas, this check can make up 10% of their yearly income.
Can You Still Apply for the 2025 PFD?
Unfortunately, no. The deadline to apply was March 31, 2025. If you missed it, you’ll have to wait for next year.
Applications were submitted online using the PFD Division website. Applicants needed to provide ID documents such as a driver’s licence or social security number. In 2025, Alaska added biometric verification to improve security, and it worked well with no major fraud cases reported.
Only those with no access to digital tools could submit physical forms, and even that needed proper proof.
Are There Rules on How to Use the PFD Money?
There are no limits on how people can spend their PFD money. It can be used for anything – personal needs, school, savings, or even holidays.
But there are some important points to note:
- The IRS considers it taxable income, so you must mention it in your tax return (Schedule 1, Form 1040, line 8g).
- If you owe money for things like child support, student loans, or state fines, up to 15% of your PFD may be taken to pay those debts.
- You can also choose to donate part of your PFD to local charities through the Pick. Click. Give program.
Using the money for any illegal activity is strictly against the law. From 2020 to 2024, 47 cases of money laundering involving PFD funds were reported. People caught face permanent disqualification from getting future dividends.
What Happens If Your Application Was Rejected?
Each year, some applications are denied due to wrong or missing documents. In 2024, about 1,203 applications were rejected. If this happens, you have 30 business days to appeal and provide documents such as:
- Rental agreements
- Utility bills
- School or medical records proving Alaska residency
The Alaska PFD is not just a bonus – it’s a lifeline for many. While it’s meant to share the wealth from the state’s natural resources, the money can help families pay bills, plan for the future, or enjoy a small treat.
With proper systems in place and a clear application process, the program continues to support thousands every year. If you missed out this time, mark your calendar for next year and make sure your paperwork is in order. Every dollar counts!