Living in Alaska? Now is the time to apply for and use the new stimulus payments that could be sent to your bank account after the application process ends in March. The state’s oil revenues pay for the yearly Permanent Fund Dividend (PFD), which gives residents much-needed money.
But it’s still not clear how much money each Alaskan will get from this year’s oil wealth sharing.
What does Mike Dunleavy say about these checks?
Mike Dunleavy, the governor of Alaska, says that each Alaskan will get about $3,900. While the legislature is meeting, the leader will decide on the exact amount. More than $1.5 billion would have to be taken out of the Constitutional Budget Reserve, which is the state’s main non-permanent fund savings account, to pay for the $3,900 that Governor Dunleavy wants to send out.
The state law says that Dunleavy’s idea is based on a formula that hasn’t been used for more than ten years. The Permanent Fund Dividend (PFD) payment would be $1,400 if lawmakers used a more up-to-date method, like taking 25% of the amount the state takes out of the Alaskan Permanent Fund every year.
Learn more about the dividend from the Alaska Permanent Fund
The PFD is going to be a fund that Alaskans who qualify will get from the state’s oil income profits. In 1976, the Alaska Permanent Fund Dividend was created to try to share some of the state’s wealth with its people.
Alaskans get a different PFD rate every year depending on things like oil revenues and state spending. The PFD amount for 2024 was more than the PFD amount for 2023. The projected PFD amount for this year, on the other hand, is the same as the amount for 2024 and still a lot less than the amount for 2022.
What’s good about these PFD checks for Alaska’s market?
The new $1,702 incentive checks that are being sent to people are very good for the economy. Residents can pay for their daily needs with the PFD cash. The Alaskans can also use the PFD checks to pay their rent, mortgage, or utility bills. Other than that, PFD checks could be used to pay for things like medical bills, school supplies, or fees.
A lot of Alaskans are told to save some of their PFD checks in case they need them in the future.
Because PFD checks have a lot of benefits, it is thought that there are no arguments about whether or not they should be used. One question that comes up a lot is whether Alaskans should get more money from the oil wealth of the state. On the other hand, some people say that the PFD should not be used to give direct funds but rather to help with healthcare and schooling. Other things that lawmakers are worried about are how long these PFD checks will last.
Who will get the new Stimulus Checks that are going to be sent to their bank accounts?
The person who wants to get the PFD stimulus check must have lived in Alaska all through 2024 in order to be qualified. It is not possible for people who have been out of Alaska for more than 180 days to get the stimulus checks. But if the person left Alaska for a valid reason, like to serve in the military, go to school, or get medical care, they will still be able to get these PFD checks. People who have been convicted of a felony in the past year would not be able to get these relief checks.
Alaskans can still apply for these stimulus checks, according to the website for the Alaska Department of Revenue. The application time runs from January 1, 2025, to March 31, 2025. But applications that are too late will not be accepted.
People who are going to get these PFD relief checks can expect to get them by October 2025. The PFD boost checks are still taxed by the Internal Revenue Service (IRS), so keep that in mind too.