In the United States, a permanent fund is one of the five types of governmental fund types established by accounting standard GASB 34. Permanent funds are legally restricted to disbursing investment income only, never principal. [1]
A fund can only be classified as a permanent fund if it is being used to pay for services for the benefit of the public, e.g. a financial endowment to pay for government-run schools or libraries. [2] A permanent fund may also be used to generate and disburse money to those entitled to receive cash payments by qualification, such as Alaska citizens or residents that satisfy the rules for payment from their permanent fund from state oil revenues. [3]
Among the eight states, the majority of permanent funds supplement general government expenditures. Alaska's permanent fund is unique in its annual distributions of income earnings to state residents.