In less than a week, Alaskans will receive another stimulus checks of over $1,300 in their bank accounts. This is all thanks to the Permanent Fund Dividend (PFD) program, which has been a financial lifeline for many. Want to learn more? We’ve got all the details.
How Is Alaska funding its residents?
The PFD is funded by the Alaska Permanent Fund Corporation, which invests in various assets like real estate, private equity, both domestic and international stocks, and U.S. bonds. This all started back in 1976 when the Alaska State Legislature passed a constitutional amendment to ensure future generations get a slice of the oil revenues from the state. The main source of funding for the Alaska Permanent Fund comes from natural resource revenues.
The Department of Revenue says the PFD has a total budget of $78 billion, funded by mining royalties, bond interest, stock dividends, and real estate income.
The Alaska Constitution mandates that the state maintain a Permanent Fund with a reserve of 25% from all mineral lease rentals, royalties, royalty sale proceeds, and federal mineral revenue-sharing payments. This way, Alaskans get a fair share of the wealth generated by the state’s natural resources. Department of Revenue Commissioner Adam Crum has praised the efforts of the Permanent Fund Dividend Division in ensuring this.
Eligibility and when you should expect payments
So you’re probably thinking, what do you need to qualify for these payments? To be eligible for the annual payment, you must have a clean record—no felony convictions allowed. Here are the other requirements:
- You need to have lived in Alaska for all of 2023 with the intention of staying permanently.
- You also shouldn’t have claimed residency in any other state or country since December 31, 2022.
- You must have a clean record with no criminal or misdemeanor convictions.
- You can’t have been out of Alaska for more than 180 days. Plus, you need to have spent at least 72 continuous hours in Alaska during 2022 or 2023.
These payments have been rolling out since October.
Even though the filing period for this year closed on March 31, the PFD has a schedule to let eligible recipients know exactly when they’ll get their payments. If you’ve filed and met all requirements, here are the dates to remember:
- April 18th: First payment delivered.
- May 16th, 2024: Last payment.
Qualified residents should remember that managing this money well is important for future payments. It might also be a good idea to look into other retirement or community investing options to make the most out of this payment.
What’s Next for the PFD?
The Alaska Senate has given the green light to a new spending plan for the PFD. They are set to vote on a proposal next week that aims to provide a 2024 PFD of about $1,580 per recipient. The House, however, has already approved a different budget that included a higher projected PFD of $2,270. The Senate’s plan includes $222 in energy assistance on top of a $1,360 payout to bridge the gap with the House’s plan. But the Senate thinks the House’s approach is impractical, especially since it leaves a $270 million shortfall when considering other state expenses like pending legislation and construction projects.
So, Alaskans, keep an eye on your bank accounts and spend that PFD wisely. There’s a lot of planning and investment behind these payments to ensure everyone gets a fair share of the state’s natural wealth.
Now, for those eligible, it’s crucial to use this money wisely so future generations can enjoy the same benefits. The Department of Revenue is busy getting these PFD payments ready, with a direct deposit of $1,312 set for May 16th. No more dates have been posted, which suggests this might be the last payment for now. To get this money, make sure you’ve applied, and the application date is now accessible.