Trump teased 'warrior dividend' checks. The money had been allotted by Congress for housing costs
During his address to the nation Wednesday night, President Donald Trump said more than 1.4 million military service members will receive a "warrior dividend" -- a $1,776 check, which the president has rebranded from funds Congress approved earlier this year specifically to assist with housing costs for those who don't live in military housing.
The checks were a surprise announcement to military service members listening to the president's speech. The president said his massive tax cuts and spending bill, which Trump signed into law in July, as well as tariff revenue helped fund the bonus.
"We are sending every soldier $1,776. Think of that. And the checks are already on the way. Nobody understood that one until about 30 minutes ago. We made a lot more money than anybody thought because of tariffs, and the bill helped us along. Nobody deserves it more than our military. And I say congratulations to everybody," Trump said in his address.
But the president appears to be using money that was already allotted for housing allowances and reframing it as a "warrior dividend" -- describing it as a check for troops just in time for Christmas.
Asked for more details, a senior administration official told ABC News that the money is coming from a housing allowance provision tucked into the president's megabill -- known as the "The One Big Beautiful Bill Act."
According to the senior administration official, Congress appropriated $2.9 billion to the Department of Defense to supplement the Basic Allowance for Housing entitlement within the bill.
The official said Defense Secretary Pete Hegseth has directed the Department of Defense to disburse $2.6 billion as a one-time basic allowance for housing supplement to all eligible service members. A Pentagon official told ABC News that the payment will "help improve [service members'] housing and quality of life.”
Members of the military would not have received this "warrior dividend" money without Trump's announcement, a Pentagon official said.
Base Housing Allowances are a normal thing based on rank and are granted by the U.S. military to personnel who live do not live in barracks housing especially in high-cost areas so that they can afford to live there. These payments of thousands of dollars a month are in addition to a service member’s salary and the amount provided varies on the region’s affordability.
Approximately 1.28 million active duty military members and 174,000 reserve military members will receive this supplement, according to the White House. The eligible service members include active duty service members below the rank of general as well as reservists on active orders for more than a month since Nov. 30.
This bonus will go to all active-duty members of the military whether they live in barracks housing or not.
The payment will come as a separate out of cycle payment because military members were already paid on Dec. 15. The "warrior dividend" payments are federally non-taxable, but subject to state taxes -- and are set to be made by Dec. 20.
In remarks at the Pentagon Thursday, Hegseth said the checks are a "nice little chunk of change" for the service members.
"It is a meaningful reflection of the gratitude that we have for all of you and what you do. I say it all the time, and I'll keep saying it till, till the last day I have this job,” Hegseth said.
On Thursday, Trump said the initial amount of the paycheck was to be $1,775 -- a reference to the year the American Armed Forces were founded -- but he decided to change it to $1,776 -- a nod to the year that America declared its independence.
"You know, the number was 1775. And I said, 'Wow, I think we can afford one more dollar,'" Trump said.
