Alaska House Republicans are sharply criticizing the majority’s recent decision to temporarily set the Permanent Fund Dividend (PFD) at zero in the latest draft of the state operating budget, fueling tensions over fiscal priorities as lawmakers work through the state’s 2026 budget process.
The change came as part of a committee substitute version of the operating budget, which currently contains no appropriation for the Permanent Fund Dividend, a longstanding annual payment many Alaskans rely on.
Republican lawmakers argued the move was both abrupt and lacking transparency. “Advancing a proposed budget that effectively zeroes out the dividend without full deliberation is not best practice,” said Rep. Jeremy Bynum, a Republican member of the House Finance Committee. “Alaskans deserve a clearer process and a budget that reflects their priorities.”
Others in the House GOP caucus expressed concern that placing no funds toward the PFD in the initial budget draft effectively turns all earnings-reserve money into general fund appropriations, leaving nothing set aside for the dividend. Opponents say this use of Permanent Fund earnings undermines stability and predictability for households budgeting their annual finances.
Supporters of the draft budget, however, note that the current proposal is a starting point for negotiations, and dividend funding could be restored as budget talks continue. Budget writers have emphasized the need to balance immediate financial relief with long-term fiscal stability.
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The debate highlights ongoing divisions within the Legislature over how best to address Alaska’s fiscal challenges while preserving the PFD, a politically and culturally significant payment established from the state’s oil and gas wealth. As lawmakers work through committee hearings and amendments, the ultimate size and timing of the Permanent Fund Dividend for 2026 remain under active discussion.
