There are two major permanent funds in the United States, which are established and maintained by state and local governments.
These funds are typically funded by revenues from natural resources, such as oil and minerals, and their primary goal is to generate long-term returns on the investment of these surplus funds in order to support the long-term financial stability and development of the state or local government.
Examples of Permanent Funds
Some examples of permanent funds in the United States include:
Alaska Permanent Fund
This fund was established in 1976 to manage the state of Alaska’s surplus oil revenues. It is one of the largest and best-known permanent funds in the United States, with assets of over $60 billion.
The fund’s main use is to provide a dividend (called the permanent fund dividend, or PFD) to its citizens each year, which is typically somewhere above $1,000 per year per person.
The PFD is an example of the concept of a universal basic income (UBI), citizen’s dividend, or basic income guarantee.
Texas Permanent School Fund & Permanent University Fund
This fund was established in 1854 to support public education in the state of Texas. It is one of the oldest and largest permanent funds in the United States, with assets of over $50 billion.
The fund is managed by the State Board of Education and is used to provide financial support to public schools (K-12 and public universities) in Texas.
Other US Permanent Funds
- New Mexico State Investment Council Permanent Funds
- Wyoming Permanent/Endowment Funds
- North Dakota Legacy Fund
- Alabama Trust Fund
- Utah State School Fund
- Oregon Common School Fund
- Montana Coal Severance Tax Trust Fund & Public School Trust