President Donald Trump announced Wednesday night that $1,776 “Warrior Dividend” checks were on their way to U.S. soldiers ahead of the 250th anniversary of the signing of the Declaration of Independence next year.
Questions immediately poured in about where the money would come from, and Defense One and others said they're actually rebranded funds already allocated for military members to beef up their housing subsidies.
The Department of War wrote to Defense One in an emailed statement, "Congress appropriated $2.9 billion to the Department of War to supplement the Basic Allowance for Housing entitlement within The One Big Beautiful Bill. Approximately 1.28 million active component military members and 174,000 Reserve component military members will receive this supplement.”
While the funds may have already been allocated, Trump has made service member pay a priority, USA Today noted. The Fiscal Year 2026 National Defense Authorization Act (NDAA), passed by Congress and sent to President Trump's desk in December 2025, includes a 4% pay raise for service members.
During his address to the nation, the president said the U.S. has the “most powerful military anywhere in the world and it’s not even close.” He indicated the money was coming from tariffs until the media tracked down the actual source of the funds to the Big, Beautiful Bill.
While recent polls have shown that the public’s opinion of how Trump has handled the economy so far in his second term has turned sour, he made a point of touting economic success. He said that his controversial tariff plan has brought in revenue, that his administration has brought inflation down and that some wages are going up.
According to Trump, the U.S. is now “the hottest country in the world.”
Still, Americans are feeling economically stressed this holiday season. Some relief may come in the form of lowered taxes and tax refunds, but those won’t impact wallets until after the New Year.