The Independence Day-themed $1,776 “warrior dividend” checks President Trump announced during his prime-time address to the nation Wednesday are funded by military housing supplement money, a senior administration official told The Post.
“Warrior dividend” checks are expected to reach the bank accounts of the roughly 1.45 million active duty service members before Dec. 20, and the payments will be tax-free.
“1776; as you know, our great nation was founded in the crucible of revolution in that year,” Secretary of War Pete Hegseth explained in a video posted to X.
“To every American warrior, President Trump and I, and the War Department, have your back,” the secretary of war went on. “Enjoy the Warrior Dividend. You’ve earned it. Thank you for your service, and we thank you for your sacrifice, and we wish you and your family a very merry Christmas.”
The patriotic-themed Christmas gift for the service members took $2.6 billion in funding from the $2.9 billion Basic Allowance for Housing entitlement hike nestled in the One Big Beautiful Bill Act (now known as the Working Families Tax Cut Act), per the official.
“This is in addition to service members’ usual Basic Allowance for Housing (which will still increase, on average, by 4.2% in 2026) — AND it includes eligible recipients who don’t currently receive BAH,” the Trump administration’s rapid response team explained.
The roughly 1.28 million active duty service members and 174,000 reserve members who were in pay grades of O-6 and below as of Nov. 30 are receiving the “warrior dividend” checks, according to the Trump administration.
On Thursday, Trump is also set to sign the National Defense Authorization Act (NDAA), which includes a 3.8% pay hike for service members.
The pay bump is separate from the one-time, tax-free $1,776 bonus checks to service members.
Trump’s team in the Department of War has previously moved money around to protect and enhance compensation for the Armed Forces.
During the 43-day government shutdown, for example, the department shifted money around twice to ensure service men and women continued to receive paychecks.
“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 added in his video message. “All elements of what we’re doing are to rebuild our military.”
The warrior dividend’s homage to America’s declaration of independence in 1776 comes ahead of the 250th anniversary of the country’s founding.
Trump touted his plans to mark the country’s 250th anniversary next year during his national address, which focused heavily on affordability issues — something Democrats believe is turning into a political weakness for the president.
“We’re poised for an economic boom the likes of which the world has never seen,” Trump declared. “Soon, we will host the World Cup and the Olympics, both of which I got, but most importantly, we will celebrate the 250th anniversary of the Declaration of Independence.
