In a prime-time national address, President Donald Trump has announced a surprise Christmas bonus for US military personnel, though questions are immediately being raised about how the substantial payout will be funded.
The Prime-Time Promise
Speaking on Wednesday night, President Trump declared that more than 1,450,000 active-duty and reserve service members would receive a special "warrior dividend" in time for the holidays. He stated the checks, each worth a symbolic $1,776 in honour of the year of American independence, are already "on the way."
The White House later clarified eligibility, specifying the payment is for active-duty members in pay grades O-6 and below who were serving as of 30 November 2025, as well as reserve component members on active-duty orders of 31 days or more at that date.
A Multi-Billion Dollar Question
The central mystery surrounding the festive gesture is its financing. The total estimated cost of distributing these checks is a staggering nearly $2.6 billion. Under the US constitution, Congress holds the "power of the purse," meaning federal spending requires legislative approval.
While President Trump touted tariffs as a major revenue generator for the nation during his speech, claiming to have "secured a record breaking $18 trillion of investment," he did not explicitly state how the military bonuses would be paid for. This claim was swiftly challenged; CNN fact-checker Daniel Dale noted on X that the President "hasn't secured anything close to $18 trillion in investment."
"We made a lot more money than anybody thought because of tariffs," Trump said after the announcement, adding, "nobody deserves it more than our military."
Context and Precedent
This is not the first time the Trump administration has sought alternative funding for military pay. During the lengthy government shutdown last autumn, the President secured $130 million from a private donor to cover service members' salaries, a move he discussed at an October roundtable.
The "warrior dividend" also follows another major financial pledge from the President, who has already promised to send $2,000 checks to American citizens next year, purportedly using tariff revenue.
The announcement was made during a wide-ranging speech where Trump reiterated familiar themes, including criticising the economic legacy of his predecessor, Joe Biden, and proclaiming the US under his leadership as the "hottest country anywhere in the world"—a statement that contrasts with the financial struggles many Americans report with housing, groceries, and healthcare costs.
The Independent has contacted the White House for further comment on the funding mechanism for the military bonuses.
