The Permanent Fund dividend has been shrunk again, as the Alaska Senate Finance Committee rolled out a revised state operating budget that cuts the payment to $1,000 per eligible Alaskan, down from the $1,500 approved earlier by the House, and far smaller than the statutory amount — the amount set in law, which is roughly $3,800.
The Senate’s version matches last year’s dividend and reflects a more restrained approach as lawmakers work to balance the state’s books amid uncertain oil revenues.
To soften the reduction, the plan includes a $150 energy relief payment per recipient, though that additional money would only be distributed if sufficient revenue is available before the fiscal year closes.
By reducing the dividend, the Senate reduced roughly $300 million from the budget compared to the House-approved plan, eliminating a projected deficit that the House left for the Senate to fix. Under current assumptions, including oil at $73 per barrel and a $360 million capital budget, this version leaves the state with a surplus of as much as $50 million.
The revised budget also takes a different approach to education funding. The Senate removed the House’s one-time $158 million increase for K-12 schools and instead tied potential funding to oil prices. If North Slope crude averages $91 per barrel, schools would receive about $84 million; if prices reach $95 or higher, funding could rise to $100 million. The final amount would not be determined until late August, adding uncertainty for school districts planning their budgets.
In addition, lawmakers included $29 million in energy relief for schools, distributed based on fuel costs — a formula that directs more assistance to rural districts with higher energy expenses.
The Senate version increases funding for disaster relief, doubled from $24 million to $48 million, partly to address issues remaining from the 2025 Western Alaska storms. Fire suppression funding was boosted to $60 million.
In total, the Senate Finance Committee cut about $450 million in state spending from the House version of the budget.
The Senate Finance Committee is expected to continue making changes before forwarding the budget to the full Senate, setting up a likely clash with the House over the size of the dividend.
The statutory formula is set by law but has not been followed since Gov. Bill Walker fatefully vetoed half of Alaskans’ dividends in 2016, and squandered their money on state operations. The legal formula uses 50% of the “income available for distribution” from the Permanent Fund’s Earnings Reserve Account. This is based on 21% of the average statutory net income over the prior five fiscal years (realized earnings only, excluding unrealized gains/losses). After subtracting administrative costs, prior-year obligations, and other adjustments, the total is divided by the number of eligible recipients (typically ~630,000–650,000 Alaskans).
Gov. Mike Dunleavy’s FY2026 budget proposal estimated the dividend would be $3,892, based on the legally established formula.
25 thoughts on “Permanent Fund dividend shrinks again, in Senate Finance”
Stealing Alaskans dividend to pay off their political allies. Disgusting and criminal. It effects the poor the most, but that isn’t a care for these monsters.
I know the politicians think this is cost free to them. It is not. You will pay one day and no one will save you. Tick. Tick. Tick.
AMEN!!(above comment) For all of those who voted AGAINST the PFD, YOUR DAY IS COMING.. You can “jump the fence,” and there will be no reprieved for your actions. Will(is)there any way to reverse what the “Chinese scumbag” Bill walker created when he rewrote the PFD procedure? Too many scumbags are getting the “pot of gold” at the end of the rainbow. That also includes the “school budget” supposedly. It all isn’t going for the school or the teachers. It’s hidden in all the slush funds hidden all over Anchorage and other places. Your day is coming..
Alaska needS to end the PFD. I like it, but it wastes so much energy in bickering and arguing.
Evan. The P- Fund was created to keep a portion of Oil Revenues out of the Political Parasites hands. In effect it was intended to LIMIT government spending and to benefit the people. Kindly reconsider your position here.
You shouldn’t be getting it, since ( by your own words, you dont live here!!) Its neither your circus, nor your monkey
No sir. I never said I don’t live in Alaska. I do live here -45 years now.
Just curious, how many times have you donated your PFD back to government and/or its programs?
I don’t return the PFD to the state. Instead I give all of it to worthy non-profits that protect our environment, wildlife and pets. How about you AKJ?
Bill Walker had to be the absolute worst governor in all of Alaska history!!!! Bar none!! I knew that once the politicians got their sticky little fingers in the cookie jar, there would be no return to the normal PFD payouts. PLUS!!!! He wanted to have China build and own the natural gas pipeline. His deal was for China to have control of 75% of the gas going thru the pipeline. What a deal!!!
Billy and wife Donna made enough trips to China to try and secure the best deal for them.
Alaskans were tagging along in the caboose on those expensive power trips.
How can the legislature legally deviate from the formula that’s on the books???
The executive branch kicked this off, the judicial branch colluded with the money grab, the legislative branch continues to perpetuate it, and then we voters failed to make them pay.
Why in the world would the culls in the Senate approve a plan to increase funding to schools if the price of oil exceeds $73 bbl? Today the benchmark price of oil is $96 bbl and the real spot market price per barrel is over $140 bbl! All indications are that this upward trend will continue for awhile. Why waste this windfall on funding a failed system with declining enrollments? If anything, it could be used to repay some of the stolen PFD money the Legislature has pilfered!
I pay over 12,000 a year in school taxes,and I have never had a kid in public school.I dont know of any city charging 50% of city taxes to schools.Home owners shouldn’t be paying for schools,since we have 90 billion dollars and give kids a full PFD.Keep your PFD,just pay my school taxes!
This is felony theft and extortion x 10 years. $150. Energy rebate that is one tank of gasoline for most people and not even a tank of heating oil. This state is about to find out what happens to the infrastructure when the employees that support all the $75k jobs and lower are no longer able to come to work and are no longer able to pay rents and mortgages due to the excessive cost of gas and utilities. Our legislature is so far out of touch with reality they all need to be removed. Stealling from the people during a economic depression and recession burdening the people unnecessarily show a complete disregard of the people on a level that has been mounting over the last 10 years. This state is about to see an explosion of homelessness and crime far beyond anything they have ever experienced. The PFD is not the states money! This money is needed by the people to afford Healthcare, vehicle repairs, shelter, heat, electricity,water, gas clothing and food. What happens when a city full of people can no longer meet their basic needs done to government tyranny?!? We all know what happens! People will not sit idle they will rise up and take control.
Like rising up to spend 5-10 minutes to go vote? I’m not holding my breath. Ain’t happened yet.
And voting makes a big difference? When a politician’s word means absolutely nothing, party affiliation and platform is only a useful tool to use while seeking office, and the narcissist’s/politicians routinely treat their constituent’s as a distasteful distraction, We the People grow not apathetic, We grow tired and hopeless in the face of such blatant corruption. I know a lot of people who care deeply about Alaska and country, but are sick of being played and tired of being lied to. It’s not apathy. It’s hopelessness.
Everyone of these politions either in the House of Senate that voted to cut our PFD need to be voted out this Nov. Anybody new is better that these people that took our PFD.
Term limits would help. Too many of the plutocrats in the Senate have been there far too long. When a group of 12 or 13 individuals can control the future of the State year-after-year, and hand out billions to their buddies, there is a problem. If the handouts were based on principle, it might be OK. However, the only operating principles are greed and maintaining power.
I’ve held my position on the PFD and Juneau’s meddling in it for lonnnnng time. I’ve never considered it an entitlement BUT the last ones who should have their hands in the PFD pot are the elected officials in Juneau. Not only are they violating Jay Hammond’s original premise for creating it, they’re indirectly using it to garner votes. The best thing to do is to hand it the legal citizens of Alaska and let them spend it in their respective communities.
Crooks, every single politician involved in the theft from Alaskan residents.
Shame on you!
Full Statutory PFD!
How disgusting these people are they steal the people’s money and then try to placate us with $150. As far as I’m concerned they can keep their $150 and shove it where the sun don’t shine. I could say more but you all don’t need to hear my profanity laced rant…
The state legislature will soon stop sending a Permanent Fund Dividend to its citizens. The dirty little secret is the legislature will then require its citizens to send a dividend back to the state based on income and wealth of each citizen.
They need an updated revenue forecast from the Department of Revenue. Multiple articles/experts are saying that it will take many months to get most of the oil production back on line. We will have high oil prices for the rest of this year. They have no excuses this time.
Want to know where your dividend is going? Look at the yearly cash payout negotiated in the state union contract.
Approx $2500 last year an $2000 this year for eligible employees.