STATE OF ALASKA
Department of Health
Division of Public Assistance
TRANSMITTAL NUMBER: MC #74
MANUAL: Adult Public Assistance
DATE: December 1, 2025
This year Social Security announced a 2.8% Cost of Living Allowance (COLA) increase effective January 2026. We have incorporated the 2026 standards into the examples and Addendum 1. The COLACost of Living Allowance adjustment also causes:
- An increase in the income limit for Substantial Gainful Activity; and
- An increase in the student earned income exclusion.
We are making several changes to incorporate new policy and clarify existing policy.
Highlights of these policy revisions are described below. If you have any questions, contact the Policy & Program Development team at hss.dpa.policy@alaska.gov.
OVERVIEW OF CHANGES
410-4(A) Interfaces That Must Be Checked
- Changed WinStar to Alaska Child Support Enforcement Services System (ACSESS).
410-7(C) Eligibility for Medicaid
- Revised section and example to align with current APAAdult Public Assistance 30 day pend and reviewing for MAGIModified Adjusted Gross Income expansion eligibility.
432-4(L)6 Cash Distributions
- Due to a new bill HR 42 revised section to include all ANCSAAlaska Native Claims Settlement Act corporation distributions, including distributions from ANCSAAlaska Native Claims Settlement Act Settlement trusts, received from July 7, 2025 - July 6, 2030 are excluded as income in the month of receipt and as a resource if retained for aged 65 or older, blind, or disabled individuals.
433-1 Transfer of Resources
- Updated all examples within the chapter to reflect the new 2026 standards.
433-2(A) Eligibility for Conditional Benefits
- Updated the SSISupplemental Security Income payment to the new 2026 amount in order to accurately calculate if an applicant is eligible for conditional benefits.
433-4 ABLEAchieving a Better Life Experience Accounts
- ABLEAchieving a Better Life Experience regulations change from 26 to 46 effective 1/1/2026.
- Updated 2026 Max Allowable contribution for certain ABLEAchieving a Better Life Experience account holders.
441-1(E)(2)B Using Actuals as Cost of Doing Business
- Removed "Depreciation" from Examples of Deductions Not Allowed.
- Added "Depreciation" to Examples of Allowable Deductions.
442-3(A)8 Unearned Income Exclusions
- Due to a new bill HR 42 revised section to include all ANCSAAlaska Native Claims Settlement Act corporation distributions, including distributions from ANCSAAlaska Native Claims Settlement Act Settlement trusts, received from July 7, 2025 - July 6, 2030 are excluded as income in the month of receipt and as a resource if retained for aged 65 or older, for blind or disabled individuals.
452-1(A) APAAdult Public Assistance Payments
- Updated all examples in subsection to reflect the new 2026 standards.
452-5(D) Assisted Living Home Payments
- Updated Assisted Living Home example to reflect the new 2026 standards.
452-6 Issuance of APAAdult Public Assistance Payments
- Revised benefit delivery options for APAAdult Public Assistance to EBTElectronic Benefit Transfer and Direct Deposit.
452-10(B) Temporary Assistance to APAAdult Public Assistance Conversions
- Updated examples in subsection to reflect the new 2026 standards.
452-12 Retroactive APA Benefit Calculations
- Updated example to reflect the new 2026 standards.
460-5 Income Allocations
- Updated all examples within section to reflect the new 2026 standards.
Addendum 1
- Updated the program standards due to the 2026 COLACost of Living Allowance.