Alaska created its fund by constitutional amendment in 1976 and has paid every resident an annual cash dividend since 1982. It is the closest model to Mongolia's Savings Fund, and both its strengths and weaknesses apply directly.
Key facts
| Chapter | What Alaska does |
|---|---|
| 1. Law | The fund is established in the state constitution (Art. IX, sec. 15); 25% of mineral lease rentals and royalties flow into it (Alaska Legislature) |
| 6. Fund | Over US$85 billion, the largest sovereign fund in the US (BusinessWire) |
| 6. Spending rule | Annual draw of 5% of the fund's five-year average market value (POMV) (BusinessWire) |
| 7. Citizen dividend | US$1,200 per person in 2026 (US$1,000 dividend + US$200 energy relief), paid from 1 October (Alaska Beacon, Cronista) |
| 7. Weakness | Since 2017 the dividend size has been fought over by legislators every year; fund earnings now pay for 50–60% of state operations (ADN, Juneau Empire) |
| 7. Politicisation | Since 2020, dividends have been larger in election years than in non-election years (Juneau Empire) |
What Mongolia can copy
- Lock the fund's revenue source (a fixed royalty share) into the constitution or law.
- Calculate withdrawals as a fixed percentage of five-year average assets, so one bad market year does not swing citizens' benefit.
- Write the citizen dividend formula into law and take it out of the annual budget fight.
What doesn't transfer directly
- Cash risks becoming an election tool; given Mongolia's experience with Human Development Fund cash handouts, keeping the current focus on housing, education and health is sensible.
- Alaska has a small population and a large fund; Mongolia's per-citizen balance is still small, so accumulating first works better than paying out cash.
This profile is part of the report Sharing Resource Wealth and focuses on chapters 6 and 7 of the 12-chapter template. Research on the other chapters is in progress.