This year, Alaska will go back to sending $1,000 automatic payments to its citizens as part of a program called Permanent Fund Dividend (PFD). This special payment is made every year and is sent to people who live in Alaska and follow certain requirements. So, let’s find out more about these automatic payments, shall we?
What’s PFD?
The Permanent Fund Dividend is a payment that Alaska residents receive using the earnings the state obtains from natural resources, like oil and minerals. Alaska is a resource-rich state, and every year it decides to give part of those earnings directly to its citizens.
In 2024, every person received $1,702, but this year the payment will be $1,000 because the state has a little bit less money to give.
When will the automatic payments be sent?
The payments are sent in three stages each year, and two of them have already been done. To those who haven’t received their money yet, they should check their status on November 12:
- If the status shows “Eligible-Not Paid”, they will get their automatic payment of $1,000 on November 20. For example:
– Those with “Eligible-Not Paid” status on September 18 were paid on October 2.
– Those with “Eligible-Not Paid” status on October 13 were paid on October 23.
- If your status says “Paid”, you can click the blue Details button to see how your payment will be delivered. You can check your status on the official PFD website.
Who will receive these payments?
To be eligible and receive these automatic payments, you must meet the following conditions:
- Be a legal resident of Alaska and plan to live in the state permanently.
- Have lived in Alaska for at least 72 consecutive hours in both 2023 and 2024.
- Not have claimed residency in another state in the past two years.
- Not have serious criminal convictions that make someone ineligible.
What’s more, the deadline to apply for the PFD this year was March 31, so if you didn’t apply for it before that date I’m afraid you have to wait until next year to receive the payment.
PFD vs. Federal stimulus
This automatic payment is different to those stimulus the federal government gave during the pandemic. The main difference between them is that the PFD is given only to Alaska residents and it comes from a special fund of the state called Alaska Permanent Fund, which was created in 1976.
This fund is mainly funded with oil and gas earnings of the state. Each year, Alaska decides to give part of those funds to citizens in automatic payments.
PFD history
The PFD has existed since the 70s and the main goal of this is to benefit Alaska residents with the state’s earnings. With the passage of time, this fund has become one of the largest sovereign wealth funds in the world, worth more than $80 billion.
Basically…
The Permanent Fund Dividend is a great way the state of Alaska shares its natural resource earnings directly with the people who live there. Even though this year’s amount is smaller than last year’s, the payment is still a very important support for many residents. I mean, every economic aid is welcomed, right?
Remember that if you are eligible and have not yet received your money, you just need to check your application status on November 12 to know whether your payment will arrive on November 20.
The PFD has been a crucial part for Alaska for decades, and it is still a unique example of how a state can use its wealth to give back to its citizens every year. Do you think this should be also done in other states?