Trump to hand out $2.6B in ‘warrior dividends’ — and the surprising pot he’s pulling the money from

Pentagon News & Events

Trump to hand out $2.6B in ‘warrior dividends’ — and the surprising pot he’s pulling the money from

More than 1.4 million service members to receive housing supplement

Morgan Phillips Fox News

Published

December 18, 2025 3:34pm EST

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President Donald Trump told Americans this week that 1.45 million U.S. service members would receive a one-time $1,776 "warrior dividend," a $2.6 billion initiative he said would hit service members’ bank accounts before Christmas.

The president credited tariffs for bringing in money.

"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 said Wednesday.

A senior administration official told Fox News Digital the president had directed Secretary of War Pete Hegseth to offer the money as a one-time supplement to the basic allowance for housing for all active duty service members pay grades O-6 and below — colonel for the Army, Air Force and Marine Corps and captain rank in the Navy. Reservists ranked O-6 and below are eligible for the checks if they have been on active-duty orders for 31 days or more as of Nov. 30.

Approximately 1.28 million Active Component military members and 174,000 Reserve Component military members will receive this supplement.

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The money comes from $2.9 billion that Congress appropriated in the "big beautiful bill" to the Department of War to supplement the Basic Allowance for Housing entitlement.

The payment, according to the official, "exemplifies the Department’s ongoing commitment to improving the housing and quality of life for our military members and their families."

Additionally, the 2026 National Defense Authorization Act (NDAA) authorized a 3.8% raise for basic military pay for all service members in 2026.

A senior administration official told Fox News Digital the president had directed Secretary of War Pete Hegseth to offer the money as a one-time supplement to the basic allowance for housing for all active duty service members pay grades O-6 and below - colonel for the Army, Air Force and Marine Corps and captain rank in the Navy. (Getty Images )

A military policeman stands guard at JBSA-Lackland Air Force Base game, Wednesday, June 9, 2021, in San Antonio. The Air Force was put on lockdown as police and military officials say they searched for two people suspected of shooting into the base from outside. (Eric Gay/AP )

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The annual defense policy bill also includes a suite of quality-of-life enhancements designed to support service members and their families. Lawmakers authorized a 60% increase in the Family Separation Allowance, raising it to $400 per month for troops separated from their dependents, and directed studies aimed at improving how housing and subsistence allowances are calculated to better reflect real-world costs.

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The legislation funds expanded child care programs, including extensions of in-home child care assistance, and boosts resources for spouse employment support, housing condition evaluations, and mental health care access. It also provides for increased educational impact aid for military-connected students and additional support for families facing relocation or deployment challenges.

The new measures come after years of documented quality-of-life challenges inside the military — from rising housing costs and shortages of childcare to persistent issues with pay, barracks conditions, and family support — problems lawmakers say these initiatives are designed to begin addressing.

Trump to hand out $2.6B in ‘warrior dividends’ — and the surprising pot he’s pulling the money from