Alaska Legislature approves $1,000 PFD, $200 energy relief payment

The Alaska Legislature conference committee approved a $1,000 Permanent Fund Dividend and raised energy relief payments from $150 to $200 per person in a split vote Sunday.

The conference committee voted 4-2 to set the dividend at $1,000. One senator objected that constituents needed a larger payment given high energy costs. The $1,000 figure had been the Senate position, passed 16-4 earlier as part of a wider debate over the dividend size versus budget reserves and future fiscal pressure. The committee then approved Amendment EA-2, which raised the energy relief payment by $50 per person at an estimated cost of $127.3 million. The amendment also increased the outside-the-BSA school payment from $111 million to $115 million.

Senator Lyman Hoffman, the conference committee chair, asked for a vote on the Senate position setting the dividend amount. Senator Mike Cronk objected to the motion.

"I'm just objecting because, you know, listening to constituents and what the high, actually, we had a really long winter, extremely high prices now that are looking like they're going to go into this winter," Cronk said. "I'm thinking the largest PFD that we could pay would be the best choice for Alaskans."

The committee voted 4-2 to approve the $1,000 dividend amount. Two House members and two Senate members voted yes. One House member and one Senate member voted no.

Representative Andy Josephson then moved to adopt Amendment EA-2, which increased the energy relief payment.

"Amendment EA-2 changes the amount of FY26 Energy Relief Permanent Fund dividend payment from $150 per person to $200 per person at an estimated total cost of $127.3 million," Josephson said. "This amendment also increases the outside-the-BSA payment from $111 million to $115 million. Finally, the amendment also appropriates $15 million to the Bulk Fuel Revolving Loan Fund at the end of the FY26 waterfall."

Representative Sapp questioned whether the $15 million appropriation to the Bulk Fuel Revolving Loan Fund would be sufficient if loan capacity reached its maximum. Legislative Finance Division staff said the amount was consistent with a roughly 50 percent increase in program usage. The exact need remained unclear.

Hoffman then asked about the waterfall structure. He confirmed that if surplus revenue proved insufficient after energy relief and K-12 formula funding, the bulk fuel fund capitalization would not occur. Staff confirmed that was correct.

The committee approved the amendment without objection after Sapp withdrew his objection.

The conference committee also approved Amendment 2 to the fiscal note package before adopting the amended packet. The committee then approved fiscal note packages for both the operating budget and mental health budget bills. Legislative Finance and Legislative Legal Services will make technical and conforming adjustments before reporting the bills out with individual recommendations.