Alaska Cash Payments Show No Rise in Injuries or Deaths

Alaska residents have received annual cash payments from the state for over 40 years through the Permanent Fund Dividend program. A new study covering 11 years of data shows these payments did not lead to more injuries or deaths. Researchers looked at hospital records and death certificates across the state right after the money went out each year. They found no spikes in traumatic injuries or unnatural deaths linked to the payouts.

Background

The Permanent Fund started in 1976 when Alaska set aside some oil money to save for the future. Voters approved the idea to make sure people in the state would benefit from oil sales for years to come. The fund invests the money and grows it over time. Each year, it pays out a dividend to every resident who qualifies, usually around $1,000 to $2,000 per person.

In the early days, the first check in 1982 was $1,000 for each eligible person. That came from extra oil revenues at the time. Since then, the amounts have varied based on how the fund performs. For example, in 2008, people got $3,269, one of the biggest payouts. More recently, in 2021, it was $1,114 per person, which added up to $4,456 for a family of four. The fund itself has grown to over $60 billion.

Nearly everyone in Alaska gets a share as long as they live there for a full calendar year and apply. In 2024, over 666,000 people received payments after more than 741,000 applications. The program reaches rural areas, cities, families, and single people alike. It has sent out billions of dollars total, helping with everyday costs like food, rent, and bills.

People often spend part of the money on debt, savings, or taxes. Lower-income households and those in remote spots use more of it for basics. The payments boost after-tax income, especially for bigger families. For some, it makes up 10% or more of their yearly take-home pay.

Critics of cash transfer ideas elsewhere in the U.S. say handing out money might make people act careless, like spending on booze or fast driving, leading to hospital visits or worse. But Alaska's program offers a real-world test because it has run so long with clear data on health outcomes.

Key Details

The study looked at 11 years of records from hospitals and vital statistics offices in Alaska. Researchers checked data for the weeks and months after dividend checks arrive each fall. They tracked things like car crashes, falls, fights, poisonings, and suicides—anything that counts as a traumatic injury or unnatural death.

How They Checked the Data

Teams pulled statewide hospital admission logs for injury-related stays. They also reviewed death certificates for causes outside normal illness, like accidents or overdoses. The focus was on time periods right after payments, when extra cash might lead to more risk-taking. Comparisons came from the same periods in years without big payouts or from before the program started.

No patterns showed up. Injury rates stayed flat or followed usual trends tied to weather, holidays, or economy. Death numbers did not jump either. Even in years with larger dividends, like over $2,000 per person, the records showed no change.

"Our long-term study of a state's population shows no connection between cash transfers and serious injury or death."
— Lead researcher on the Alaska Permanent Fund analysis

The review covered the whole population, from cities like Anchorage to bush communities. It included all ages and income levels. Researchers adjusted for things like population growth or seasonal risks to make sure the findings held up.

Alaska tracks dividend applications closely each year. Numbers hover around 700,000 to 750,000, with most getting approved. Payments go out in October, and people cash them quickly. Past surveys show about 60% of residents view the program positively, with many saying it helps the local economy and supports those in need.

The fund comes from oil royalties put into stocks, bonds, and real estate. It aims to last forever, with rules to protect the main pot of money. Declining oil output has cut new inputs, but investments keep it strong.

What This Means

These results challenge ideas that cash handouts always lead to harm. As more U.S. cities and states test cash programs for low-income families or homeless people, Alaska's experience points to steady behavior. People used the money without big health risks showing up in public records.

Lawmakers in other places look to Alaska when debating similar plans. The program has run without signs of widespread work drop-off or inflation spikes. Recipients often keep jobs and pay taxes on the dividends. For families, it softens costs in a high-expense state with long winters and remote living.

The study adds to talks about sharing resource wealth directly with citizens. Alaska's oil boom funded the fund, but now it relies on smart investing. Future payouts depend on markets and state choices about spending earnings.

Public views stay mostly supportive. Recent polls find over 80% see it as key for communities and growth. It reaches kids, elders, and workers alike, spreading benefits wide. No evidence emerged of more emergency room crowds or morgue overloads tied to check day.

Researchers note the data covers a stable program in one state. Results might differ elsewhere with different amounts or rules. Still, 11 years of clean records offer solid ground for discussion on cash as a tool without hidden dangers.

Alaska keeps the program going, with each year's amount announced after fund reports. It stands as the longest real test of regular, no-strings cash to residents. The lack of injury or death upticks lets backers point to facts over fears.