The Alaska Legislature has approved a $1,000 Permanent Fund Dividend (PFD) for this year as part of its ongoing budget negotiations. This decision comes against a backdrop of a significant budget shortfall, largely attributed to persistently low oil prices.

This year’s dividend, when adjusted for inflation, marks the smallest payout since the PFD program’s inception in 1982. The House previously proposed a $1,400 dividend but faced a $250 million deficit in its budget plan approved in April. In contrast, the Senate’s plan, which passed in May, features deeper spending cuts alongside the $1,000 dividend, freeing up $264 million for other budgetary needs.

A conference committee has been working to reconcile differences between the House and Senate budgets to finalize a single bill for Governor Mike Dunleavy’s approval. On Sunday, the committee greenlit the $1,000 dividend, despite opposition from Republican minority members.

The legislative session is set to conclude by midnight on Wednesday, making it crucial for the joint committee to finalize the budget swiftly.