Alaskan residents are set to receive a $1,702 stimulus check in 2025 as part of the Permanent Fund Dividend (PFD) and a one-time energy relief bonus. This initiative helps distribute the state’s oil revenue among its residents, ensuring they benefit from Alaska’s natural resource wealth. The payout aims to support households facing rising energy costs and financial instability.
This year’s PFD payout includes:
- $1,403.83 from the traditional Permanent Fund Dividend
- $298.17 as an energy relief bonus
Payments will be made via direct deposit and paper checks, starting in October 2025.
Alaska’s Permanent Fund Dividend (PFD) and Stimulus Checks
The Alaska Permanent Fund Dividend (PFD) is an annual payment funded by oil revenue surpluses. It ensures that Alaskans share in the state’s fiscal success. In 2025, the PFD includes an energy relief payment, reflecting the government’s response to rising energy costs and economic challenges.
The $1,702 payout is approximately $400 higher than 2023’s dividend, thanks to higher-than-expected oil prices and production.
Overview of the $1,702 PFD Payment
| Authority | Department of Revenue |
|---|---|
| Program Name | Alaska Permanent Fund Dividend Program |
| Benefit Type | PFD + Energy Relief Bonus |
| Country | USA |
| Payment Amount | $1,702 |
| Payment Method | Direct Deposit, Paper Check |
| Payment Date | October 2025 |
| Category | Government Aid |
| Official Website | pfd.alaska.gov |
Governor Dunleavy’s Proposal and Legislative Decision
In December 2023, Governor Mike Dunleavy proposed a $3,500 PFD payment, using a traditional calculation method. However, the Alaska Legislature rejected the proposal due to concerns over a $1 billion budget shortfall.
Instead, lawmakers adopted a revised formula, splitting revenue between state services and individual dividends. While this reduced the payout amount, it ensured long-term financial stability for Alaska.
The decision reflects a balanced approach:
- Supporting residents with direct payments
- Funding essential public services
- Avoiding financial instability
$1,702 PFD Checks: Payment Breakdown
The 2025 PFD payment includes:
- $1,403.83 (Base Dividend)
- $298.17 (One-Time Energy Relief Bonus)
This increase in the PFD is due to:
- Higher-than-expected oil revenues
- Legislative approval of additional funds
- Rising energy costs requiring financial relief
The state’s decision to add an energy relief bonus helps households manage increasing utility and fuel expenses.
Legislative History and PFD Calculation
Since 2017, the Alaska Legislature has determined the PFD amount, following an Alaska Supreme Court ruling that ended the 1980s calculation formula.
Under the new approach:
- 75% of the Alaska Permanent Fund’s annual revenue is used for public services
- 25% is allocated to dividends for residents
For 2025, the standard dividend payout was set at $1,403.83, with an additional energy relief payment of $298.17 funded by excess oil revenue.
Key Takeaways from the Legislative Decision
✔ The $1,702 total payout is based on oil revenue trends
✔ The energy relief bonus aims to counteract higher energy costs
✔ The formula balances public service funding with direct citizen benefits
Payment Schedule and Tax Implications
The PFD payments will be distributed in October 2025:
- Direct deposits will be processed first
- Paper checks will be sent later in the month
Taxation of the PFD Payment
- The $1,403.83 base dividend is taxable under federal tax laws
- The $298.17 energy relief payment is tax-free
This means Alaskans will see a slightly lower tax burden, as part of their payout is exempt from federal taxes.
Why the 2025 PFD is Higher
Several key factors contributed to the increase in the PFD this year:
| Factor | Impact on PFD |
|---|---|
| Higher oil production | Increased state revenue |
| Rising oil prices | More funds for dividend distribution |
| Legislative approval | Energy relief bonus included |
| Economic challenges | Extra financial support for citizens |
The energy relief payment was added specifically to help Alaskans with rising energy costs, a major expense in the state.
Final Thoughts
The $1,702 stimulus check through the Alaska Permanent Fund Dividend and energy relief bonus offers financial relief to eligible Alaskans. While the payout is lower than Governor Dunleavy’s original proposal, it ensures fiscal responsibility while still providing direct support to residents.
With rising living costs, this year’s higher PFD amount helps Alaskans manage expenses while maintaining the state’s long-term economic health.
FAQs:
Who qualifies for the $1,702 PFD payment?
Alaska residents who meet the eligibility criteria of the Alaska Permanent Fund Dividend program, including continuous residency and no criminal disqualifications.
When will the PFD payments be made?
Payments will begin in October 2025, with direct deposits issued first and paper checks sent later.
Is the $1,702 payment taxable?
The $1,403.83 base dividend is taxable
The $298.17 energy relief payment is tax-free
