NATIONAL NEWS

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

Dec 18, 2025, 12:18 PM

President Donald Trump speaks during an address to the nation from the Diplomatic Reception Room at...

President Donald Trump speaks during an address to the nation from the Diplomatic Reception Room at the White House, Wednesday, Dec. 17, 2025, in Washington. (Doug Mills/The New York Times via AP, Pool)
Credit: ASSOCIATED PRESS

(Doug Mills/The New York Times via AP, Pool)

WASHINGTON (AP) — The “Warrior Dividend” that President Donald Trump announced during his televised address to the nation Wednesday is not a Christmas bonus made possible by tariff revenues, as the president suggested.

Instead, the $1,776 payments to troops are coming from a congressionally-approved housing supplement that was a part of tax cut extensions and expansions bill signed into law in July, Trump’s administration said Thursday.

In his remarks, Trump alluded to his “One Big Beautiful Bill Act” playing a role, but suggested that tariffs were largely responsible for the payments already on the way to 1.45 million members of the military.

“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,” he said in announcing what he described as a “dividend.”

Trump has teased the idea of using his sweeping tariffs on imports to give Americans dividends ever since he imposed them in April. But these new payments are being disbursed by the Pentagon from a $2.9 billion military housing supplement that was part of Trump’s “One Big Beautiful Bill Act” to augment existing housing allowances, according to a senior administration official who requested anonymity to describe the payments.

The amount of the payments is a nod to next year’s 250th anniversary of the signing of the Declaration of Independence in 1776. In total, the measure is expected to cost $2.6 billion.

Trump’s announcement comes as he’s faced pressure to show he’s working to address rising costs for Americans, with prices remaining stubbornly high as the president has imposed double-digit tariffs on imports from almost every country. Trump has promised to lower prices, but he has struggled to do so. Inflation hit a four-decade high in June 2022 during Joe Biden’s presidency and then began to fall. But inflation has stayed elevated under Trump in part because of his tariffs.

It’s not the first time Trump has brandished ‘dividends’

Sending money to voters is a timeworn tool for politicians and one that Trump has repeatedly tried to use, including this year.

Trump has for months suggested every American could receive a $2,000 dividend from the import taxes — an effort that seemed designed to try to shore up support for tariffs, which the president has said protect American industries and will lure manufacturing back from overseas.

But that particular pledge appeared to exceed the revenues being generated by his tariffs, according to a November analysis by the right-leaning Tax Foundation. The analysis estimated that the $2,000 payments being promised to taxpayers could add up to between $279.8 billion and $606.8 billion, depending on how they were structured.

The analysis estimated that Trump’s import taxes would produce $158.4 billion in total revenue during 2025 and another $207.5 billion in 2026. That’s not enough money to provide the payments as well as reduce the budget deficit, which Trump has also claimed his tariffs are doing.

Earlier this year, as his Department of Government Efficiency was slashing the U.S. government and its workforce, Trump had briefly proposed sending a DOGE “dividend” back to U.S. citizens.

Neither the tariff dividend or DOGE dividend has come to fruition, and members of Trump’s own party as well as officials in his administration have expressed some skepticism about the idea. There is also the risk that the payments being promised by Trump could push up inflation, as they would likely spur greater consumer spending. Republican lawmakers argued in 2021 that the pandemic relief package from then-President Biden — which included direct payments — helped trigger the run-up in inflation.

National News

Sen. Dan Sullivan, R-Alaska, hands out candy at a Halloween event outside the Big Lake Lions Club, ...

Associated Press

Sullivan claims Peltola is ‘still lying’ about campaign’s involvement in Alaska ballot controversy

WASHINGTON (AP) — Republican Sen. Dan Sullivan said Sunday that he doubted claims by his Democratic opponent that she had no idea her top political aides were involved in recruiting a retired schoolteacher also named Dan Sullivan onto the ballot to confuse voters in a race that could determine which party controls the Senate. Republicans […]

48 minutes ago

Michigan Democratic Senate candidate Abdul El-Sayed speaks at a campaign rally, Saturday, Oct. 31, ...

Associated Press

Michigan Democrats’ unity push falters as Stevens is asked to skip event with El-Sayed

DETROIT (AP) — Michigan Democrats are heading to church in Detroit on Sunday in an attempt to present a united front behind Abdul El-Sayed in a race that could decide control of the U.S. Senate. But one prominent Democrat is expected to be missing from the pews. U.S. Rep. Haley Stevens, who lost in the […]

1 hour ago

This photo provided by Valerie Terranova shows a performance of the musical "In The Heights" at the...

Associated Press

Director calls Broadway revival of ‘In the Heights’ at NY City Center a ‘balm for these times’

NEW YORK (AP) — David Mendizábal vividly remembers sitting in the audience for the final performances of playwright Lin-Manuel Miranda’s “In the Heights.” Almost two decades later, Mendizábal is directing the musical that was once his “portal to the theater.” “It was the first time I’d ever heard or seen a world that looked and […]

3 hours ago

President Donald Trump speaks at a Halloween party at his Mar-a-Lago estate in Palm Beach, Fla., Sa...

Associated Press

Trump’s rallies in Iowa and Kansas come as Republicans fight to keep Senate and House control

WASHINGTON (AP) — President Donald Trump is closing out the final days of a turbulent midterm campaign with rallies in two states he has handily won in the past, underscoring the defensive posture his Republican Party is taking as the elections become a referendum on his White House second term. His first stop is scheduled […]

3 hours ago

FILE - President Donald Trump speaks and announces action to help farmers and ranchers, as a group ...

Associated Press

Trump administration promises US farmers $15 billion in weeks before the midterms

SIOUX FALLS, S.D. (AP) — President Donald Trump’s administration has made $15 billion worth of promises to agriculture producers in the last few weeks of the midterm elections, initiatives intended to help offset higher costs for diesel and fertilizer that farmers have endured largely due to his tariffs and the war in Iran. Whether that […]

3 hours ago

Pages from the U.S. Affordable Care Act health insurance website healthcare.gov are seen on a compu...

Associated Press

What to know about the Affordable Care Act’s open enrollment period now underway

WASHINGTON (AP) — People heading into the Affordable Care Act open enrollment period with plans to sign up for insurance should expect a variety of changes in 2027, including higher premiums and fewer coverage options. The sign-up window for the marketplace, also known as Obamacare, starts Sunday in most states and runs through Jan. 15. […]

4 hours ago

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