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Trump announces $1,776 ‘warrior dividend’ payout for military personnel

President Trump announced a symbolic $1,776 payment to about 1.4 million active-duty service members funded by higher federal revenue from tariffs, to arrive before Christmas.

  • President Donald Trump announced in a prime-time White House address on Dec. 17 that more than 1.45 million military service members will receive a $1,776 'Warrior Dividend' before Christmas.
  • The administration says tariff receipts and the One Big Beautiful Bill funded the payout, with a $2.9 billion Pentagon appropriation and Secretary of Defense Lloyd Austin ordering $2.6 billion disbursed.
  • The Department of Defense said the payment will be a one-time basic allowance for housing supplement paid to active-duty servicemembers in pay grades O-6 and below as of November 30, 2025, and reserve members on 31+ day orders, with payments expected by Wednesday.
  • Congress controls appropriations, raising questions as the administration said tariffs and the bill funded the payout, with the total cost estimated at about $2.9 billion amid political headwinds.
  • Linking the amount to 1776, President Donald Trump framed the $1,776 payout as military recognition and part of affordability messaging ahead of the midterm elections and 2026 economic rebound.
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Center

Trump's touted military Christmas bonus came from Pentagon funds, not tariffs

The president suggested last week that a $1,776 Christmas bonus for troops was made possible through tariff revenue – when it was actually money they were already set to receive from the Pentagon.

Lean Left

President Donald Trump presented the "warrior dividend," a one-time, tax-free bonus of $1,776 for more than 1.45 million military

Lean Right

The “Fighter Divider” that President Donald Trump announced during his televised speech on Wednesday, is not a Christmas bonus that materialized thanks to tariff revenues, as the president said. Instead, the payments of $1,776 for members of the armed forces come from a housing supplement that is part of the law of extensions and expansions of tax cuts that was enacted in the middle of this year, the federal government reported on Thursday.

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NBC New York broke the news in New York, United States on Wednesday, December 17, 2025.
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