On December 17, 2025, Donald Trump unexpectedly announced in a televised speech the payment of a bonus called the ‘Warrior Dividend.’ According to the White House, it is a symbolic tribute to the year of the founding of the United States in 1776, and a way to honor part of the military. This unique $1,776 bonus is intended for active-duty military personnel, from the lowest to mid-level ranks, as well as reservists, totaling 1,450,000 people.
The news has not gone unnoticed by some politicians who remind the government that the president has not sought Congress’s permission to spend money in this way, while he claims that the money comes from taxes on exported products. Additionally, it is important to remember that the amount is subject to tax, so the amount received will be less. Eligible recipients hope that the bonus will reach their bank accounts before Christmas Day.
Warrior Dividend
With the aim of honoring members of the United States Army, President Trump announced on December 17 in a televised speech the creation of a bonus intended for military members. According to Trump, “1,450,000 military service members will receive a special, which we call a Warrior Dividend before Christmas. A Warrior Dividend. In honor of the founding of our nation in 1776, we are sending each soldier $1,776 … And the checks are already on the way”.
According to information from the White House, this bonus will be eligible for active-duty personnel of low and mid-level ranks (grade 0-6), as well as reservists who have completed at least 31 days of active service, leaving out senior officers. Eligibility will include a total of 1,450,000 people.
Where does this money come from?
The decision to create this bonus has been unilateral on the part of the executive branch. That is why it is worth noting its origin. Since it is not an internal adjustment to the salaries of the military, the money had to come from somewhere else. Originally, there was the Basic Allowance for Housing structure for eligible troops from the Department of Defense, which provided support to pay soldiers’ long-term rents and mortgages.
Although Trump claims that the money for this bonus comes from the profits generated by tariffs, the truth is that it comes from this aid that already existed previously. In this scenario, several political voices have questioned this action, as the president cannot bypass traditional credits and use Congress’s budget without consulting.
When is this bonus expected?
The Defense Finance and Accounting Service (DFAS) oversees payroll and is responsible for distributing the payments, which are expected to arrive before December 25, Christmas Day. It is worth noting that this payment will be treated as taxable income, which means taxes will have to be paid, so the net amount received will be less than the announced figure.
Frequently asked questions
Who receives the payment?
About 1,450,000 active-duty military personnel of lower and mid-level rank (up to O-6) and reservists with 31 days of service. Senior officers do not participate.
When will the deposit arrive?
The money should appear in bank accounts before December 25, managed through the normal military payroll system (DFAS).
Is the full amount received?
No, the final amount will be less than the $1,776 announced because taxes must be deducted as it is considered extra income.