By SUZANNE DOWNING
April 10, 2026 – The Alaska House voted Friday to reduce the 2026 Permanent Fund dividend from an estimated statutory amount of roughly $3,800 to about $1,450, as lawmakers wrangled the operating budget during floor session.
The vote on CSHB 263(FIN) came after lawmakers adopted an amendment setting the dividend far below the amount called for under the traditional statutory formula. The measure passed 23–17. The Legislature has not followed the law since 2017.
Three Republicans — Rep. Jeremy Bynum of Ketchikan, Rep. Will Stapp of Fairbanks, and Rep. Dan Saddler of Eagle River — joined Democrats in supporting the lower dividend amount.
Under the statutory formula, the dividend would have been approximately $3,800 this year, depending on final revenue calculations. The House budget instead uses a reduced payout, redirecting funds toward government spending.
Republicans opposing the reduction argued the move once again ignores state law and breaks expectations with Alaskans who have long supported following the statutory formula. They also noted that the Legislature has repeatedly reduced dividends in recent years while state spending continues to grow.
Democrats say the reduced amount is necessary to balance the operating budget without deeper cuts to state services.
The vote occurred during second reading of the operating budget, labeled “APPROP: OPERATING BUDGET; AMEND; SUPP,†where Amendment No. 1 as amended was adopted. The roll call showed 23 yeas and 17 nays.
Rep. Kevin McCabe initially introduced an amendment to fund a full statutory Permanent Fund dividend, saying the proposal was intended to force a clear debate about legislative priorities.
But the amendment was later modified on the floor after Rep. Andy Schrage offered a change that reduced the dividend to roughly $1,500. When two Republicans joined the majority to adopt that change, the proposal no longer reflected McCabe’s full-dividend intent.
McCabe then attempted to withdraw the amendment, arguing it was being used to lock in a lower payout, but the House blocked his request, with Rep. Jeremy Bynum siding with the majority to keep it in place. The revised amendment reduced the dividend while still relying on the Constitutional Budget Reserve to balance the budget.
The reduced dividend now moves to the Senate, where lawmakers are expected to revise the spending plan. Any differences between the chambers would then be negotiated in a conference committee.
The final dividend amount will not be set until both chambers agree on a budget and the governor signs the appropriations bill. The governor is not allowed to add back to a reduced dividend.
One thought on “House cuts PFD down from $3800 to $1450”
Thieves. Lawbreakers. Criminals.
We will know we are healing as a state when they would never even think of doing this because they are afraid of prosecution.