By SUZANNE DOWNING
Feb. 12, 2026 – In a move that signals where this year’s dividend debate may be headed, the House Finance Committee’s majority moved Wednesday in Juneau to zero out the Permanent Fund dividend in the first committee substitute of the state operating budget.
The action appears in Committee Substitute 1 for House Bill 263, where lawmakers allocated the full Percent of Market Value draw, the annual amount available from the Permanent Fund, entirely to government operations, leaving nothing designated for dividend payments. The Legislative Finance Division agency summary shows the Permanent Fund line reduced to “0.0” under the House Finance structure, effectively removing the dividend from the budget draft at this stage.
This is not the final budget, but it is an unmistakable indicator of the direction House Democrats are taking. Alaskans should brace for yet another “what’s left over” dividend, whatever remains after state spending priorities are met.
The POMV draw is the primary pool lawmakers use each year to fund both state government and the Permanent Fund dividend. When the entire draw is directed into the operating budget, the dividend becomes an afterthought, funded only if legislators decide later to add something back.
The decision is especially notable because 2026 is an election year, when legislators have traditionally been more generous toward the dividend, knowing voters are watching closely. Instead, the first House Finance draft begins negotiations from a position that assumes no dividend funding at all.
It also is a reminder of a key reality often missed in public debate: Once lawmakers remove dividend funding, the governor cannot simply restore it. The governor may propose a dividend amount and may veto spending, but he cannot increase an appropriation beyond what the Legislature passes. If the House and Senate drafts do not include a funded dividend, the governor’s options are limited.
Budget negotiations will continue for weeks, and the Senate has yet to weigh in, but the first committee substitute is often the clearest signal of legislative intent.
Wednesday’s vote confirms the Permanent Fund dividend is once again on the chopping block, and Alaskans should not assume a full dividend will be protected even in an election year.
The committee also took out inflation proofing for the Permanent Fund.
22 thoughts on “House Finance majority zeroes out Permanent Fund dividend”
Send every one of these jokers packing. First will be the Permanent Fund Dividend, next a sales tax, then an income tax. They really are dead set on chasing everyone, that’s not suckling on the government tit out.
You are 100% correct! What a shame and a sham this state is turning out to be.
Knew that day was coming!! After living in Eagle River for 24 years, I left. I now have a beautiful newly remodeled home, 2 bedroom, 1bath, New roof, septic, appliances, windows, sinks, shower, toilet, electrical, etc with 2 sheds on .71 acres outside the city limits in Georgia. Ranked 14th for the most economical place to live in the state $148,800. Property Tax $63 a month. 60 degrees today and sunshine!
I predicted years and years ago that once the politicians got their greedy little paws in the permanent fund cookie jar that it would be next to impossible to put the lid back on. Nothing is more fun for them than spending someone else’s money. Thank you Bill Walker.
Now where am I going to get the rest of my spirits money? I was counting on that full, statutory PFD to resupply my liquor cabinet. My Democrat donors are the cheapest, stingiest, tightwads I’ve ever met. Soon I will have to ask Suzanne for a reporting job to keep me going. Otherwise, i feel the end is near……
Who is,surprised?? It must be a day ending in Y. The Democrats in Juneau are stealing again.
So annoying. These dividends help so many especially those in villages where there isn’t that many jobs and when there are openings they are taken or filled right away. Also helps families get transportation rides like snowmobiles boats which are substantial for subsistence.
Who didn’t see this fiasco coming like a freight train down the rail. Legislators will never be satisfied with just the dividend. Their policies have already chased most of the youth out of the state. So, when the last person in the state leaves, turn the lights off on your way out.
Evidently they don’t care to win ANY election this year..They just “outed” themselves from ever being elected elected in ANY place..
Their politics stinks and people aren’t going to agreee with this.they’re dead in any political poisition ever to be elected..When you “TOUCH” the PFD…people depend upon the PFD to make it through the year…They (except) for a very few don’t use it for exotic traveling.
If voters paid any attention, but most do not. They will complain when they hear the paltry amount, but do not expect most people to vote any differently than they already have. Albeit ridding ourselves of RCV might give us a better chance of getting more honorable people elected.
Because, like Dunbar adding back another $10 million in fed Covid funds that should’ve gone to local businesses in the first place after the assembly whittled down the $200million, they hope to make themselves appear generous when any amount is applied. A tiny fraction will look better than zero, so start at zero and make yourself look good when you propose or vote for $5. Nobody will remember they wanted to keep it all when we end up getting some. If it actually stuck, and $0 came through, then people would vote them out of office. But that’s not going to happen. They set the game, folks. Pop some popcorn.
You would be spot on except for the political calculus – the damrats have already figured out how to cheat enough to keep getting elected and maintain power. Crying shame.
Everyone of these so called politions need to retire and everyone needs to be voted out for ever.
Everyone knows exactly where this is going. They will insist upon steering much more money towards the NEA Cult of Social Perversion. It would be different if they could proudly point to a 15 or 20 percent improvement in math or reading against the national average. But they can’t. They just keep indignantly insisting that they deserve more and more money, while turning out results that are nearly the worst in the country.
Any money taken out of the PFD is a tax. The constitution says resources belong to the people. The amount taken from the yearly amount set in law should be reported to each and every Alaskan and it should be considered as a state income tax on your IRS tax form.
This is excellent ! Report what the amount should be, and how much Alaskans have been taxed ! The Law is on the Books. This is the kind of transparency we need, and no where is it being reported. Why not ? When was the last time a full Statutory dividend was paid out ? How much has been withheld over the years ? Of course the Politicians don’t want this kind of scrutiny, but an independent press should be all over it. This is how change happens. Uncomfortable truths need to come to light …
Save you all your breathlessness. There will be a Dividend. Just not as much as your heart desires.
A dividend of Zero is not a,dividend. Read the article! they set the amount at zero. Meaning nothing, zip,nada.
Save you all your overreactions and misdirected paranoia. the Dems will never zero out the Dividend this year. In fact the Dems and the Repubs can hold hands and over-draw the PFER to pay a Dividend – violating their own Statute. I would explain more but Suzanne banned my last column contribution. If she prints it now I will look like Nostradamus/
I don’t recall banning your last contribution. – sd
I thought these people were elected to represent and help the people. If that job is not what they want then they should step down. I believe they are running for the wrong reasons, personal gain.
They’re representing the small core of corrupt friends that own them – who benefit from the theft of the PFD.