JOSH BOAK and MICHELLE L. PRIC Es.

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)

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

The “Warrior Dividend” that President Donald Trump announced Wednesday is not a Christmas bonus made possible by tariff revenues, as the president appeared to suggest during his televised address to the nation. Instead, his administration says the $1,776 payments to troops are coming from a congressionally approved housing supplement. It was a part of the tax cut extensions and expansions bill that Trump signed into law in July. Trump said the payments are already on the way to 1.45 million members of the military and suggested that tariffs were to thank for it. Trump has been teasing the idea of dividends since he first imposed his sweeping tariffs in April.

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