US President Donald Trump on Wednesday (local time) announced a one-time $1,776 "warrior dividend" for American military troops for Christmas, indicating that tariffs were funding the payments.
Flanked by two Christmas trees and a portrait of George Washington, Trump speaking at the White House said that around 1.45 million service members would receive the payment, with the money reaching them before the holidays, suggesting that the bonus would help ease financial pressures on military families.
Tariffs are paying US military $1,776 'warrior dividend'
Trump said, "Because of tariffs, along with the just-passed one 'Big Beautiful Bill' tonight, I am proud to announce that more than 1,450,000 military service members will receive a special 'warrior dividend' before Christmas.”
"In honor of our nation’s founding in 1776, we are sending every soldier $1,776, and the checks are already on the way. We made a lot more money than anybody thought because of tariffs, and nobody deserves it more than our military…" he stated, referring to the GOP’s major tax cuts legislation passed earlier this year.
"Nobody deserves it more than our military, and I say congratulations," Trump added.
Who is eligible for the 'warrior dividend'?
According to the announcement, the one-time payment will be given to:
- Active-duty service members in pay grades O-6 and below who were on active duty as of November 30, 2025
- Reserve component members serving on active-duty orders of 31 days or more as of November 30, 2025
The announcement comes at a time when many Americans are struggling with high costs of groceries, housing, utilities and holiday expenses. Inflation remains elevated and the labour market has weakened in recent months, trends that followed Trump’s tariff hikes and slower hiring.
Tariffs, websites & more: Key highlights from Trump's address
Trump further promised an economic boom in 2026 but acknowledged concerns over inflation, while blaming his predecessor, former US President Joe Biden for current challenges.
"Eleven months ago, I inherited a mess, and I’m fixing it," he said. "We’re poised for an economic boom, the likes of which the world has never seen," he continued.
Defending his trade policy, Trump insisted tariffs were delivering results. Calling tariffs his "favorite word," he said the levies imposed on imports from China, Canada, Mexico and other trading partners were generating unexpected revenue.
"Nobody can believe what’s going on here," Trump said. "It’s not done yet, but boy are we making progress," he added.
Trump also pointed to his administration’s efforts to cut drug prices, saying tariffs were used as leverage in negotiations with pharmaceutical companies and foreign governments.
"I negotiated directly with the drug companies and foreign nations, to which we're taking advantage of our country for many decades, to slash prices on drugs and pharmaceuticals by as much as 400, 500, and even 600 percent," he said.
"In other words, your drug costs will be plummeting downward. And I used the threat of tariffs to get foreign countries who would never have done it to pay the cost of this giant dollar reduction. They stopped ripping us off. And it began as of four days ago," Trump added.
He said the first round of price reductions would be available starting in January through a new website, trumprx.gov. "And these big price cuts will greatly reduce the cost of health care. The money should go to the people," he said.