The amount of this year’s Permanent Fund dividend has been set by the Alaska Legislature at $1,000. The governor is not allowed to add back the funds taken by legislators and used for state services, so even if he vetoes part of the budget, he cannot restore the dividend to its statutory amount, which was the $3,900 he put in his proposed budget last fall.
Since Gov. Bill Walker vetoed half of Alaskans’ dividends in 2016, the Legislature has set subsequent dividends by negotiations, not a fixed formula as directed by statute, making them subject to the political whims of election years.
During election years for the past five years, the dividend has tracked higher. In 2024, there was a moderate increase with the “energy relief” portion of the dividend, which occurred during the election year.
2022’s high PFD aligns with the election and high oil prices, suggesting political motivation to boost dividends. 2024’s moderate increase also occurred during an election year.
If the trend continues, Alaskans might expect that the Permanent Fund dividend in 2026 will trend higher, as it will be another election year.
The PFD payments are typically disbursed in early October for online applicants with direct deposit, just three weeks before the general election, which makes it especially tempting for legislators to be more generous to constituents, as in vote buying.
