What is the principal of a permanent fund allowed to be used for?

The principal of a permanent fund is designed to remain intact and is not available for immediate expenditure. Instead, the earnings generated from the investment of that principal can be utilized for various purposes. This concept ensures that the fund can provide a continuous source of income over the long term, maintaining the fund's value while allowing for the use of its earnings.

Permanent funds are often established with the intention of supporting specific programs, activities, or initiatives over time, benefiting future generations. Therefore, while the principal itself must be preserved, the earnings can be spent, aligning with the idea that the fund serves as a lasting financial resource.