Qualified Alaskans will start receiving the massive $3,200 direct payments starting next month. Early this year, the Alaska Legislature passed a budget that included $3,200 payments to eligible individuals before the year's end.

The first batch of direct payments will start showing up in bank accounts on Sept. 20, according to Alaska Public Media. Then, early October will see the delivery of paper checks.

According to the newspaper, the state House of Alaska rejected a $5,500 payout that had been approved by the state Senate. Some lawmakers turned against the $3,850 deal that the two chambers' negotiators had proposed, resulting in the $3,200 total.

The need for higher payments were cited as a result of factors including inflation, rising energy costs, and other concerns that were putting a strain on Alaskans' regular budgets.

The $3,200 sum, which comes from the Permanent Fund payout, is one of the greatest gifts in state history, according to the newspaper. As a part of the state's budget, which was among the largest in its history, Governor Mike Dunleavy (R-AK) signed the idea into law in June.

"This budget is more than a spending plan; it's a blueprint for Alaska's future. Budgets should reflect the values and ambitions of the people they are designed for, and I believe this legislation accomplishes that," Alaska's governor said.

A payment known as the Permanent Fund Dividend (PFD) is given to Alaskan citizens who have lived in the state for the whole calendar year (January 1 through December 31) and who intend to stay there indefinitely. As a result, if residency was started on January 2, the "calendar year" wouldn't begin until January 1 of the following year.

Nevertheless, a person is not qualified for a PFD for a dividend year if:

  • They were absent from Alaska for more than 180 days, unless on a permissible absence.

  • During the qualifying year, the person was sentenced as a result of a felony conviction in this state.

  • The individual was incarcerated for all or part of the qualifying year as a result of a felony conviction in this state.

The amount of each payout changes significantly depending on the stock market and many other circumstances and is based on a five-year average of the Permanent Fund's performance.

The lowest individual dividend payout was $331.29 in 1984, and the highest was $2,072 in 2015. However, in 2008, Governor Sarah Palin signed Senate Bill 400, which used money earned from the state's natural resources to give a one-time special payment of $1,200 to every Alaskan qualifying for the PFD.