Frequently asked questions

The people of Alaska. It's a public fund, created by a vote of the people in 1976 and held by the State. No individual, company, or politician owns it; the Alaska Permanent Fund Corporation simply manages and invests it on the public's behalf.

Mostly from oil. Alaska owns its mineral resources, and the state constitution (Article IX, Section 15) requires that at least 25% of mineral royalties be deposited into the Fund. Once invested, the Fund also grows from investment returns — which now do more of the heavy lifting than new oil money.

The Fund is the ~$89 billion savings-and-investment pool. The dividend (PFD) is the annual check paid to residents out of the Fund's earnings. The Fund is the goose; the dividend is one of the eggs. See How It Works.

The Principal is protected by the constitution and can't be spent without a statewide vote to amend it. Only the Earnings Reserve — the realized profits — can be appropriated by the Legislature, and even that is guided by the 5% POMV draw rule (which is in statute, not the constitution).

Today, by the Legislature, year by year. A formula in state law (21% of five-year average net income, halved, divided among residents) historically set it — but since a 2016 veto broke from that formula, the amount has been set through the annual budget instead. That's why it changes and why it's so contested. See The Dividend.

Under the old formula, the dividend rose and fell with the Fund's five-year average earnings, so strong market years produced larger checks. In some years lawmakers also added one-time "energy relief" payments on top. Recent dividends have been set lower, mainly because the same earnings now also fund state services.

Yes — the PFD is taxable income on your federal return (Alaska has no state income tax). The state issues guidance each year; check pfd.alaska.gov for the official details. (This is general information, not tax advice.)

The constitutionally protected Principal can't simply be spent away. But the spendable Earnings Reserve can be drained in a bad stretch of markets. A 2025 state forecast put the odds at about 46% that within a decade the Fund couldn't fully fund both services and the dividend. That risk drives the reform debate. See Why It Matters.

Percent of Market Value. Since 2018, the state limits its annual withdrawal to about 5% of the Fund's average market value over five years. Averaging smooths out good and bad years, and the cap is meant to keep the Fund sustainable.

Alaska's (~$89B) is the largest sovereign wealth fund in the United States, but Norway's (over $2.1 trillion) is roughly 26 times larger and the biggest in the world. Norway saves nearly all its oil earnings and spends only the returns — a model often cited in Alaska's debate.

The Alaska Permanent Fund Corporation (APFC), created in 1980. It's run by a Board of Trustees — public members appointed by the governor plus state officials — who set investment policy at arm's length from day-to-day politics. APFC does not set the dividend.

Learn how it works, follow the annual budget decisions, contact your legislators, vote on ballot measures that affect the Fund, and share what you learn. Start at Get Involved.