President Donald Trump announced on Wednesday that members of the United States military will receive a special payment of $1,776 ahead of Christmas. The one-time payout, referred to by Trump as the “Warrior Dividend,” is meant to honor the year of America’s founding.
During a televised national address, Trump stated that 1,450,000 military service members are set to receive the payment.
“In honor of our nation’s founding in 1776, we are sending every soldier $1,776,” he said. “And the checks are already on the way.”
Table of Contents
Tariffs Credited for Funding, Though Details Remain Unclear
Trump attributed the ability to issue these payments to increased revenue from tariffs, suggesting that higher-than-expected tariff income made the initiative possible. However, he did not directly explain the exact source of funding for the program.
“We made a lot more money than anybody thought because of tariffs, and the bill helped us along,” Trump added. “Nobody deserves it more than our military.”
Pentagon Ordered to Issue $2.6 Billion Housing Supplement
According to a senior administration official speaking to CNN, Defense Secretary Pete Hegseth has directed the Pentagon to distribute $2.6 billion as a one-time housing allowance supplement. The payment applies to eligible service members in pay grades O-6 and below.
The supplement will reach approximately:
- 1.28 million Active Component military members
- 174,000 Reserve Component military members
Earlier this year, Congress approved $2.9 billion for the Department of Defense—renamed the Department of War under Trump’s policy agenda—to strengthen the Basic Allowance for Housing program. The one-time $1,776 payments are part of this broader housing and quality-of-life support effort.
Improving Military Housing and Support Services
A senior official emphasized that this additional payout reflects the administration’s commitment to enhancing living conditions for service members and their families.
“This one-time payment exemplifies the Department’s ongoing commitment to improving the housing and quality of life for our military members and their families,” the official told CNN.
CNN has reached out to the Treasury Department for further details on how and when the payments will be disbursed.