Trump Announces $1,776 ‘Warrior Dividend’ for US Troops
18th Dec. 2025
US President Donald Trump has announced a one-off $1,776 (£1,329) “warrior dividend” payment for 1.45 million US troops. He said the money will arrive before Christmas and will be funded partly through revenue raised from tariffs. In an 18-minute prime-time address to the country on Wednesday night, Trump said that “checks are already on the way”, framing the payout as a symbolic gesture tied to the country’s founding.
The total cost of the payments is $2.57bn (£1.9bn), which the president said was distributed “in honour of our nation’s founding in 1776”. While the announcement dominated the speech, Trump also used the address to defend his record on the economy and immigration. At the same time, he repeatedly criticized Democrats and former President Joe Biden.
How Trump Says the ‘Warrior Dividend’ Will Be Paid For
According to Trump, the funds for the dividend were drawn from sweeping tariffs imposed by his administration. He also pointed to their “One Big, Beautiful Bill” that was signed into law on 4th July. “Nobody deserves it more than our military,” he said, delivering the remarks with a forceful tone intended to project confidence.
However, the speech offered limited new policy detail. Moreover, several of the Trump’s claims appeared exaggerated or disputed by existing economic data. Trump insisted that prices were “all coming down and coming down fast”, blaming Democrats for previous increases. “Democrat politicians also sent the cost of groceries soaring, but we are solving that too,” he said.
Although fuel and egg prices have declined, many other food items remain more expensive. In addition, data from September showed inflation rising to 3% for the first time since January, while consumer confidence fell to its lowest level since April. These changes largely drove concerns over housing, childcare, and healthcare costs.
Recent polls show unrest between voters, including Trump’s Supporters
Meanwhile, recent polling highlights growing unease among voters. A Politico poll found that about half of all voters, that includes supporters from 2024, believe the cost of living is the worst it has been in their lifetimes. Similarly, another poll released in November showed Trump’s approval rating on economic issues falling to 36%, a drop of 15 points since March.
Trump has previously acknowledged that rising prices hurt Republicans in November elections. It is particularly in states such as Virginia, New Jersey, and New York, as well as in Miami and Georgia. He has also conceded that incumbent parties often struggle in midterm elections, scheduled for next year.
Although the president showed little direct empathy for households under financial strain, he pointed to tax reforms passed earlier this year as evidence that relief is coming. Still, after nearly 11 months in office, many Americans say they have yet to feel meaningful change. Looking ahead, Trump framed next year’s 250th anniversary of US independence as a turning point. “When the world looks at us next year, let them see a nation that is loyal to its citizens,” he said. He further added, “We are respected again, as we have never been respected before.”
Web Resources on the Trump’s Warrior Dividend
1. Bloomberg.com: Trump Announces Military ‘Warrior Dividend’ Amid Inflation Woes
2. Reuters.com: In holiday speech, Trump highlights victories amid sinking approval ratings
3. CNN.com: Troops will receive $1,776 checks before Christmas, Trump announces
4. AcademicBlock.com: Donald Trump lifts Tariffs on dozens of Food Products