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.
4 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.
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!!!