President Donald Trump’s “Warrior Dividend” bonus for service members, which he suggested would be funded by tariff revenue, is actually a one-time basic allowance for housing stipend already approved by Congress, according to a senior administration official.
The $1,776 bonus payment Trump announced while addressing the nation Wednesday night will be paid using funds Congress appropriated to the Defense Department in the One Big Beautiful Bill Act, which was passed into law in July, to supplement the basic allowance for housing.
Congress appropriated $2.9 billion to supplement the basic allowance for housing, and the Pentagon will disburse $2.6 billion of that funding as a one-time payment to roughly 1.28 million active-duty service members and 174,000 Reserve Component members.
“The Secretary of War directed the department to use some of the Basic Allowance for Housing funds to provide a one-time payment to service members during this holiday season to help improve their housing and quality of life,” a DoD official told Federal News Network.
Active-duty service members in pay grades O-6 and below are eligible for the payment, along with National Guard and Reserve members in the same grades who were on active-duty orders of 31 days or more as of Nov. 30.
This payment will be made outside of the regular pay cycle by Dec. 20.
The senior administration official told Federal News Network the Defense Department service members who are not currently receiving housing allowances are also eligible to receive the bonus.
The basic allowance for housing funding in the Big Beautiful Bill was originally intended to address rising housing costs and reduce service members’ out-of-pocket housing expenses.
Trump suggested during his speech that the bonuses would be funded by excess tariff revenues.
“We made a lot more money than anybody thought because of tariffs, and the bill helped us along. Nobody deserves it more than our military, and I say congratulations,” Trump said.
Trump suggested during his speech on Wednesday that the bonuses would be funded by excess tariff revenues.
federalnewsnetwork.com