Lessons and Limitations: The Alaska Permanent Fund’s Role in the U.S. Sovereign Wealth Fund Debate

*Cover image courtesy of the U.S. Geological Survey (USGS)

By Jonathan Scanlon

Edited by Tombe Moja, Madison Obermeyer, Berk Oto

The Alaska Permanent Fund is a critical case study in understanding the legal governance issues and complexities of sovereign wealth funds in the United States. While it has succeeded in turning a non-renewable resource into “renewable” income, its constitutional reliance on resource revenues, burdensome “two-account structure,” and conflicting distribution frameworks, highlight the challenges of replicating the model on a national scale. The ongoing policy debates on the issue, propelled by Executive Order XCV, which directed the establishment of an American sovereign wealth fund, underscore the importance of learning from Alaska’s legal missteps.