President Trump announced a $1,776 "Warrior Dividend" to be distributed to about 1.45 million U.S. service members before Christmas, calling the payment a tribute to 1776. He credited tariff revenues for the funds but offered no detailed financing plan. Separately, the Pentagon will issue a $2.6 billion one-time housing supplement for eligible service members in pay grades O-6 and below; Congress had previously appropriated $2.9 billion to support Basic Allowance for Housing. Officials say the measures aim to improve housing and quality of life for military families.
Trump Announces $1,776 'Warrior Dividend' Checks for About 1.45 Million Troops Before Christmas
US Army troops listen during an event with President Donald Trump at Fort Bragg, North Carolina, on June 10. - Anna Moneymaker/Getty Images/File
President Donald Trump announced Wednesday that roughly 1.45 million members of the U.S. military will receive $1,776 payments before Christmas — a distribution he called the "Warrior Dividend" and framed as a tribute to the nation’s founding year, 1776.
Details of the Payment
During a televised address, Trump said the administration would send the checks "before Christmas," and repeated that "the checks are already on the way." He attributed the ability to make the payment to increased revenue from tariffs but did not provide a detailed accounting of the program’s financing.
"1,450,000 military service members will receive a special, we call, warrior dividend before Christmas. A warrior dividend. In honor of our nation’s founding in 1776, we are sending every soldier $1,776," Trump said.
Pentagon Housing Supplement
Separately, Defense Secretary Pete Hegseth directed the Pentagon to distribute $2.6 billion as a one-time supplement to the Basic Allowance for Housing (BAH) for eligible service members in pay grades O-6 and below, a senior administration official told CNN. That supplement is expected to reach roughly 1.28 million Active Component and 174,000 Reserve Component service members.
The official also said that Congress had previously appropriated $2.9 billion to the Defense Department to bolster BAH entitlements as part of legislation linked to the administration’s policy agenda this summer. The White House has at times used the phrase "Department of War" when referring to the Defense Department, according to administration sources.
"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 said.
Questions Remain on Funding and Timing
While Trump credited tariffs and recent legislation for generating the funds, public details about the exact funding mechanism and timeline for the $1,776 checks remain limited. CNN has reached out to the Treasury Department for further information on timing and funding and is awaiting a response.
This story has been updated with additional details.
