More than 600,000 Alaskans are waiting to know how much they will receive from the Permanent Fund Dividend (PFD) in 2025. While the original proposal by Governor Mike Dunleavy aimed for a high amount of $3,900 per person, lawmakers are now considering much lower amounts due to serious budget concerns.
This yearly payment is very important for many Alaskan families, as they count on it to cover basic expenses. But at the same time, the state government must also make sure it can afford to keep essential services running without falling into a deeper financial crisis.
Governor Dunleavy’s $3,900 Proposal and Legislative Pushback
In early 2025, Governor Dunleavy suggested that each eligible resident receive a $3,900 PFD, based on a statutory formula that hasn’t been used in over 10 years. This legal method calculates the dividend using state oil revenues and earnings from the Alaska Permanent Fund.
However, in April 2025, the Alaska House of Representatives voted to cut the proposal by nearly two-thirds, citing the state’s growing budget deficit. Lawmakers explained that although they want to help families, the high cost of the proposed amount would hurt the state’s financial stability.
Senate and House Offer Different Amounts
As of May 2025, the Senate Finance Committee is recommending a $1,000 PFD, which would be the lowest in five years, especially when adjusted for inflation. This proposal aims to save $265 million in the state budget.
Earlier, the House of Representatives had backed a $1,400 payment, using a method similar to what’s been followed in recent years. In 2024, residents received $1,702, which included a bonus for energy costs.
Is the $3,900 Dream Still Possible?
A draft by the House Finance Committee in April briefly considered a $3,892 payment, following the full legal formula. But state analysts warned that such a high amount would drain almost half of the Constitutional Budget Reserve. Experts say this is not realistic and would lead to serious funding problems for other public services.
Lawmakers agree that the focus should be on balancing the needs of people and the state’s budget. For now, payments around $1,000 to $1,400 seem more likely.
Who Is Eligible for the 2025 PFD?
The eligibility rules for the 2025 PFD have not changed. To qualify, you must:
- Be a permanent resident of Alaska
- Have been physically present in Alaska for at least 72 hours in the last two years
- Not have a disqualifying criminal record
- Apply before the deadline, which was March 31, 2025
People who submitted their applications on time and met all conditions are expected to receive the payment in September or October 2025, depending on when the final amount is approved by the state government.