Trump’s 'Warrior Dividends' financed through military housing allowance funds

WASHINGTON, DC: President Donald Trump announced a one-time $1,776 payment to US service members, branded as 'Warrior Dividends', during a national address on Thursday, December 18. 

Senior administration and Pentagon officials have confirmed that the payments will be funded through existing military housing subsidy money already approved by Congress.

The funds were allocated earlier this year under the administration's 'One Big Beautiful Bill Act'. Payments are expected to be delivered to eligible service members by Saturday, December 20. 

Donald Trump said that the $1,776 amount was chosen to honor the nation's founding year, as the US approaches its 250th anniversary in 2026. 

Payments drawn from military housing allowance funds 

According to a senior administration official, the one-time payments will be funded using money appropriated to supplement the Basic Allowance for Housing (BAH), a benefit intended to help military families offset housing costs.

Congress approved $2.9 billion for BAH supplements this summer, and approximately $2.6 billion of that amount will be used for the "warrior dividends" payments. 

“The checks are already on the way,” Trump said in his address. “Nobody deserves it more than our military, and I say congratulations’ to everybody.”

A Pentagon official confirmed that the Defense Department will distribute the payments to about 1.45 million service members, including roughly 1.28 million active-duty personnel and 174,000 reservists.

The remaining $300 million from the housing allocation will be reserved for future BAH needs. 

The payments will be issued as a one-time housing allowance supplement to eligible troops. Senior officers will not receive the bonus, while most enlisted service members, junior officers and certain reservists are eligible. 

Troops who do not currently receive housing allowance may still qualify, according to officials.

Defense Secretary Pete Hegseth said the payment reflects the administration's focus on service members' quality of life.

"This Warrior Dividend serves as yet another example of how the War Department is working to improve the quality of life for our military personnel and their families," Hegseth said. “All elements of what we’re doing are to rebuild our military.”

Rebranding raises questions about the funding source

While Trump described the payments as a new reward for service members, congressional officials confirmed the funding was previously authorized by lawmakers and does not represent new spending.

A senior official said the bonus is effectively a rebranded housing supplement rather than a newly created program. 

Trump also suggested that the money was tied to tariff revenue, though congressional officials said tariff funds are not being used. White House officials did not respond to whether the payments were mischaracterized.