{"id":119,"date":"2026-05-18T18:07:47","date_gmt":"2026-05-18T18:07:47","guid":{"rendered":"https:\/\/movingtoalaskausa.com\/?p=119"},"modified":"2026-05-18T18:07:47","modified_gmt":"2026-05-18T18:07:47","slug":"alaska-lawmakers-reach-budget-deal-with-1000-pfd-and-200-energy-rebate-for-residents","status":"publish","type":"post","link":"https:\/\/movingtoalaskausa.com\/?p=119","title":{"rendered":"Alaska lawmakers reach budget deal with $1,000 PFD and $200 energy rebate for residents"},"content":{"rendered":"
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Alaska lawmakers are planning to vote on a <\/span>$13.9 billion<\/span> compromise state operating budget that includes a $1,000 Permanent Fund dividend and a $200 energy rebate.<\/span><\/p>\n

Read more Alaska House votes to immediately eliminate sick leave for many workers in the state<\/a><\/p>\n

In a 4-2 vote Sunday morning, a panel of House and Senate negotiators finalized a deal that combines two different versions of the budget \u2014 one <\/span>passed by the Senate<\/span> and <\/span>the other by the House<\/span> \u2014 preparing legislators for a final vote before the last regular day of the legislative session on Wednesday.<\/span><\/p>\n

Once passed by the Legislature, the budget will go to Gov. Mike Dunleavy, who may sign it or use his line-item veto powers to eliminate or reduce specific items. The governor has never let a budget go into law without some vetoes.\u00a0<\/span><\/p>\n

With legislators <\/span>focused on a potential tax break for the proposed trans-Alaska natural gas pipeline<\/span>, the state budget has taken second billing in the state Capitol this month.<\/span><\/p>\n

Legislators convened in January with the expectation that they would be facing a massive deficit in fiscal year 2027, which starts July 1.\u00a0<\/span><\/p>\n

The Iran war, and the subsequent closure of the Strait of Hormuz, has sent oil prices soaring, resulting in hundreds of millions of dollars in <\/span>extra revenue for the state<\/span>.<\/span><\/p>\n

That eliminated the projected deficit, but lawmakers don\u2019t expect to have much left over for the Permanent Fund dividend.<\/span><\/p>\n

While a payment formula from the 1980s remains in state law, legislators since 2016 have adopted a \u201csurplus dividend\u201d approach, paying the dividend with what\u2019s left over after services are covered.
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While Dunleavy <\/span>proposed a $3,800 Permanent Fund dividend<\/span> in December, that would have required deep spending from the state\u2019s savings accounts.\u00a0<\/span><\/p>\n

Members of the House <\/span>approved a draft budget<\/span> with a $1,500 Permanent Fund dividend in April, and in a competing draft, the Senate <\/span>reduced that to $1,000 and a $150 one-time bonus<\/span> intended to offset higher energy prices.<\/span><\/p>\n

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The final compromise version of the budget closely resembles the Senate plan, but the one-time bonus was slightly increased, to $200, in an amendment proposed over the weekend.<\/span><\/p>\n

The final version of the budget also contains $144 million in one-time bonus payments for public schools across the state, including $29 million intended to offset the high cost of heating fuel.\u00a0<\/span><\/p>\n

The one-time bonus is less than the House proposed but higher than the Senate\u2019s figure.\u00a0<\/span><\/p>\n

The budget also proposes to fund a heating assistance program for Alaskans, increase Medicaid reimbursements for medical providers, send additional money to cities and boroughs, and increase funding for wildfire response.<\/span><\/p>\n

Altogether, the budget balances if Alaska North Slope oil prices average at least $75 per barrel in FY27. The average price since March is above $100 per barrel.<\/span><\/p>\n

The operating budget advancing to a final vote is the last of four budget bills that lawmakers approve in an ordinary year.\u00a0<\/span><\/p>\n

The state\u2019s supplemental budget \u2014 making changes to fiscal year 2026 \u2014 was adopted in March and <\/span>signed by the governor in April<\/span>. The <\/span>$2.5 billion capital budget<\/span>, which funds construction and renovation projects statewide, is awaiting a final vote in the Senate.<\/span><\/p>\n

Alaska\u2019s comprehensive mental health budget is moving in parallel to the operating budget and is expected to pass when the operating budget does.<\/span><\/p>\n

Read more Alaska Legislature nears final approval of smaller city councils, budget training for school boards<\/a><\/p>\n

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