Alaska 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 financial aid is designed to help Alaskans manage rising living costs and energy expenses. The payment will be deposited directly into eligible residents’ bank accounts or sent via paper checks.
The stimulus is funded by Alaska’s oil revenues, ensuring that the state’s natural resource wealth benefits its citizens. With economic uncertainties and increasing energy costs, this payout provides essential relief to many households.
Understanding the $1,702 PFD Stimulus Check
The Alaska Permanent Fund Dividend (PFD) distributes the state’s oil revenues to eligible residents annually. In 2025, the dividend includes:
- $1,403.83 as the standard PFD amount
- $298.17 as a one-time energy relief bonus
This additional payment helps offset rising energy costs and ensures that Alaskans can afford essential needs.
Overview of the 2025 PFD Stimulus Check
| Program Name | Alaska Permanent Fund Dividend Program |
|---|---|
| Authority | Alaska Department of Revenue |
| Total Amount | $1,702 |
| Components | $1,403.83 PFD + $298.17 Energy Relief Bonus |
| Payment Methods | Direct Deposit, Paper Check |
| Payment Date | October 2025 |
| Official Website | pfd.alaska.gov |
Governor Mike Dunleavy’s Proposal and Legislative Decision
Governor Mike Dunleavy initially proposed a $3,500 PFD payout for 2025, based on Alaska’s traditional dividend formula. However, lawmakers rejected the proposal to avoid a $1 billion budget shortfall.
Instead, a revised formula was approved to balance state services and personal dividends, ensuring financial stability for both individuals and the state. While the final $1,702 payout is lower than the governor’s proposal, it helps maintain a sustainable budget while still benefiting Alaskans.
Why Is the 2025 PFD Higher?
The $1,702 PFD is $400 higher than the 2023 dividend. Several key factors contributed to this increase:
- Higher oil production and prices led to surplus state revenues.
- Legislators allocated a portion of excess revenue to increase the dividend.
- The one-time energy relief bonus ($298.17) was included to help residents deal with high energy costs.
Breakdown of the Payout
| Payment Component | Amount |
|---|---|
| Base PFD Dividend | $1,403.83 |
| Energy Relief Bonus | $298.17 |
| Total | $1,702 |
PFD Payment Distribution and Tax Implications
The first round of PFD payments will be sent via direct deposit, with paper checks following later in October.
Tax Considerations
- The standard PFD amount ($1,403.83) is taxable under federal law.
- The energy relief bonus ($298.17) is tax-exempt, reducing the overall tax burden for recipients.
This tax exemption provides a small but helpful relief for Alaskans receiving the payment.
Legislative History of the PFD Formula
Since 2017, the Alaska Legislature has determined the annual PFD amount based on state revenue and economic conditions. The original 1980s formula was eliminated by the Alaska Supreme Court, giving lawmakers control over dividend calculations.
Under the current model:
- 75% of Alaska’s oil revenue funds public services like education, healthcare, and infrastructure.
- 25% is allocated for PFD payments, which are distributed among eligible residents.
This formula helps balance economic stability and financial aid for Alaskans.
Who Qualifies for the $1,702 Stimulus Check?
To be eligible for the 2025 PFD payment, residents must meet the following criteria:
- Be an Alaska resident for the entire year
- Intend to remain a resident permanently
- Not claim residency in another state
- Not have certain criminal convictions
- Apply within the official PFD application period
Final Thoughts
The $1,702 Alaska stimulus check provides much-needed financial relief, especially as energy costs continue to rise. While the payout is lower than the governor’s initial proposal, it still represents a significant increase from previous years.
With direct deposit and paper checks scheduled for October 2025, eligible Alaskans can look forward to a financial boost that helps them manage daily expenses and energy costs.
FAQs
When will Alaskans receive the $1,702 PFD payment?
Payments will begin in October 2025 via direct deposit, followed by paper checks later in the month.
How is the PFD amount determined each year?
The Alaska Legislature sets the amount based on oil revenue, economic conditions, and state budget priorities.
Is the PFD payment taxable?
Yes, the $1,403.83 base dividend is taxable. No, the $298.17 energy relief bonus is tax-exempt.
Why was the original $3,500 PFD proposal reduced?
Lawmakers lowered the payout to prevent a $1 billion budget deficit while maintaining state services.
How does Alaska fund the PFD payments?
The Alaska Permanent Fund, which collects oil revenue, funds the annual PFD payments.
