President Trump Announced a $1,776 Dividend for the Military Ahead of Christmas

During a televised speech on Dec. 17, President Trump announced that he would be sending $1,776 checks or "warrior dividends" to members of the military ahead of Christmas.

"Because of tariffs, along with the just passed, one big, beautiful bill, tonight, I am also proud to announce that more than 1,450,000, think of this, 1,450,000, military service members will receive a special, we call warrior dividend, before Christmas, a warrior dividend in honor of our nation's founding in 1776 we are sending every soldier $1,776. And the checks are already on the way," Trump said during his speech. Here's what we know about when the dividend will hit bank accounts.

Trump was not very specific on the details behind his plan, although he did say that the checks were "already on their way."

“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 added during his speech.

According to reporting from CNN, Defense Secretary Pete Hegseth directed the Pentagon to pay out a “one-time basic allowance for housing supplement to all eligible service members in pay grades O-6 and below," per a senior administration official.

“This one-time payment exemplifies the Department’s ongoing commitment to improving the housing and quality of life for our military members and their families."

It's unclear whether Trump should receive approval from Congress, which is supposed to control budgets, before sending out the payments, but it seems like he is planning to move ahead without consulting the legislative branch. As for the exact timing of the payments, it sounds like Trump is hoping the checks will reach members of the military over the next week, although no exact date has been reported by the Pentagon or the Treasury Department.

In addition to offering support for the military, these bonus payments are also designed to soften the blow faced by Trump's tariffs, which have led to persistent inflation and questions about the possibility of a recession.

In his speech, Trump tried to make it clear that the economic struggles people are facing are not his fault, at least not primarily.

“Eleven months ago, I inherited a mess, and I’m fixing it," he said at the start of his speech, blaming President Biden for the affordability issues facing many Americans.

"It's not done yet, but boy, are we making progress," Trump added on his efforts to lower prices. "Nobody can believe what's going on."

This announcement may endear him to some members of the military, but $1,776 is not a life-changing sum for most Americans. It will certainly help them get ahead, but in the long run, affordability problems run much deeper. Whether Trump's speech changed any American's outlook on affordability more broadly is an open question, but this gift was certainly intended to help turn Trump's fortunes around.