Alaska House Republicans sharply criticized the majority’s decision to temporarily set the Permanent Fund Dividend (PFD) at zero in the latest draft of the state operating budget, escalating tensions in the Legislature’s budget negotiations.
The draft budget, released by House Finance Committee leaders, currently contains no funding for the 2026 PFD, a longtime annual payment many Alaskans rely on. Republicans argue that zeroing out the dividend, even temporarily, undermines stability and fails to respect the spirit of the state’s fiscal framework.
Republican members of the House Majority Coalition raised concerns that excluding the dividend from the initial budget draft sends a troubling signal to residents who depend on the PFD for household budgeting. They also objected to how quickly the decision was made, with limited opportunity for bipartisan input.
Supporters of the draft note that it is an early starting point in what will be extended negotiations. Budget authors have said the decision to temporarily set the dividend at zero does not necessarily mean the PFD will ultimately be eliminated. Instead, they argue it gives the Legislature flexibility to address immediate funding needs while weighing long-term fiscal responsibility.
Also Read: House Republicans Criticize Budget Draft Setting Permanent Fund Dividend at Zero
Alaska lawmakers continue to grapple with balancing government services, capital needs, and Permanent Fund earnings as they work toward a final budget deal in the 2026 session. The size and timing of any dividend payment remain key sticking points as negotiations move forward.
