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Trump’s new $1,776 ‘Warrior Dividend’ to troops is coming from Pentagon funding, not tariffs

Pentagon redirected $2.6 billion housing funds to provide $1,776 tax-free bonuses to 1.6 million active and reserve military personnel, amid legal and congressional spending limits.

  • On Wednesday night, President Donald Trump announced a $1,776 'Warrior Dividend' for troops, saying `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.`
  • Defense Department officials said Thursday that the Pentagon is disbursing $2.9 billion from a congressionally approved housing supplement in the July tax-and-immigration law signed by President Donald Trump.
  • About 1.45 million active-duty troops and 174,000 reservists will receive tax-free payments from pay grades E-1 through O-6, while Coast Guard 'Devotion to Duty' payments are $2,000 but taxed, with take-home near $1,776, announced Thursday.
  • Legal experts and lawmakers warned that Congress must approve tariff revenue spending, the Supreme Court has not ruled on emergency tariff powers, and Sen. Coons, Reed, and Wicker expressed mixed reactions.
  • Analysts warn tariffs are unlikely to cover broad dividend promises, with $2,000 payments estimated to cost between $279.8 billion and $606.8 billion, and economists caution about inflation risks this year.
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15 Articles

merkur.demerkur.de
+3 Reposted by 3 other sources
Center

President Trump plans Christmas bonuses for the military. The funds come from dedicated housing funds. Critics in Congress are concerned.

Lean Right

Even the conservative Fox News channel could not hide its embarrassment: the check of 1776 dollars promised by Donald Trump to the US military does not really constitute a gift. The corresponding sum comes in reality from the "Reconciliation funds", a fund approved by Congress and intended to subsidize the housing of the military. The information was revealed by the American media and confirmed by officials of the administration.WARRIOR DIVIDENDS

·Paris, France
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Fortune broke the news in New York, United States on Thursday, December 18, 2025.
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