President Donald Trump holds up the “One Big, Beautiful Bill” Act that was signed into law during an Independence Day military family picnic on the South Lawn of the White House on July 4, 2025 in Washington, D.C. (Photo by Alex Brandon – Pool/Getty Images)
WASHINGTON — The $1,776 “warrior dividend” checks President Donald Trump announced during Wednesday’s prime-time address will come from basic housing allowance funds approved by Congress and signed into law in July, according to a senior administration official.
Trump touted the one-time payments to troops Wednesday night as a new boost made possible in large part by tariff revenue.
“In honor of our nation’s founding in 1776, we are sending every soldier $1,776 — think of that — and the checks are already on the way. Nobody understood that one until about 30 minutes ago,” Trump said.
“We made a lot more money than anybody thought because of tariffs, and the (reconciliation) bill helped us along. Nobody deserves it more than our military, and I say congratulations to everybody,” he continued in his 18-minute address.
Politico first reported the money would not come from tariffs, as the president implied, but from a housing stipend already approved by Congress in this summer’s budget reconciliation bill, a massive tax and spending cuts measure often dubbed the “one big, beautiful bill,” which Trump signed into law on the Fourth of July.
A senior White House administration official confirmed to States Newsroom via email Thursday afternoon that Secretary of Defense Pete Hegseth has directed the department to disburse $2.6 billion “as a one-time basic allowance for housing supplement” to eligible service members at the rank of senior officer and below. The official also specified the one-time payment will go to “eligible recipients not receiving” a basic allowance for housing.
The email specified that Congress appropriated $2.9 billion to the Department of Defense, which the White House refers to as the Department of War, to supplement the basic housing allowance entitlement.
The amount can be found in Title II of July’s budget reconciliation law.
“This one-time payment exemplifies the Department’s ongoing commitment to improving the housing and quality of life for our military members and their families,” the administration official wrote in the email.
The White House did not respond to follow-up questions pointing to Trump’s attribution in his speech to tariff revenue.
When asked for comment, the Pentagon directed States Newsroom to a social media post on the White House Rapid Response account that slammed Politico’s reporting as “highly misleading.”
One-time payment
A Department of Defense article published Thursday by “Pentagon News” states, “Money to pay for the Warrior Dividend came earlier this year as part of the president’s One Big Beautiful Bill” and does not mention tariffs.
The article, written by C. Todd Lopez, quotes Jules W. Hurst III, assistant secretary of the Army “who is performing the duties of comptroller for the War Department,” as saying, “This payment is a ‘thank you’ from President Trump, the American people and Congress.”
U.S. Sen. Roger Wicker, R-Miss., who chairs the Senate Committee on Armed Services, issued a statement Thursday commending Trump’s “swift action to implement the additional funding Congress provided to help offset housing costs for service members.”
“This one-time payment, combined with an average 4.2 percent increase to the Basic Allowance for Housing and 3.8 percent military pay raise in 2026, will put real money in the pockets of our servicemembers and their families, helping provide greater stability and improved housing options as they manage the unique demands of military life,” Wicker said.
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