President Trump announced on Wednesday night that every active and reserve service member will receive a $1,776 check as part of a new “warrior dividend” program, a gesture tied to the nation’s founding year and the recent One Big Beautiful Bill.
Overview of the Program
During his national address, Trump highlighted affordability and wrapped up the first year of his second term. He said, “Because of tariffs, along with the just passed One Big Beautiful Bill, tonight I am also proud to announce that more than … 1,450,000 military service members will receive a special, we call ‘warrior dividend’ before Christmas,” adding that the checks are already on the way. He continued, “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 added.
Who Will Receive the Checks?
The bonus checks will be sent to 1.454 million service members, a senior administration official told The Hill. That includes approximately 1.28 million Active Component military members and 174,000 Reserve Component military members. Eligibility details are as follows:
- Active duty service members in pay grade O-1 to O-6 are eligible. This includes all enlisted soldiers, E-1 to E-9, and all warrant officers, W-1 to W-5.
- Most commissioned officers are eligible, including company grade officers-second lieutenant, O-1; first lieutenant, O-2; and captain, O-3-as well as field grade officers-major, O-4; lieutenant colonel, O-5; and colonel, O-6.
- General officers, O-7 and above, are not eligible. This group includes brigadier general, O-7; major general, O-8; lieutenant general, O-9; and general, O-10.
- Reserve component service members in pay grade O-6 and below are eligible if they have been on active-duty orders of 31 days or longer as of Nov. 30, 2025.
Timing of the Checks
Trump said service members should receive the checks before Christmas, next Thursday. He emphasized that the payments are already on the way.
Tax Implications
The checks are a one-time basic allowance for housing (BAH) supplement. Because BAH is a nontaxable benefit covering living expenses, the payments are not subject to federal income tax. Eligible service members who do not otherwise receive BAH will still receive the checks, according to the senior administration official.
Funding Sources
The One Big Beautiful Bill Act, Trump’s sweeping tax and spending law passed earlier this year, appropriated $2.9 billion to the Pentagon to supplement the BAH entitlement. Secretary of Defense Pete Hegseth directed the department to disburse $2.6 billion as part of the “warrior dividend,” the senior administration official said. The remaining $300 million will support future BAH requirements, according to a Pentagon official. Trump also credited revenue generated from tariffs for the checks, saying, “We made a lot more money than anybody thought because of tariffs, and the bill helped us along.”
Pay Comparison
Service members’ monthly pay varies by rank and years of service:
- An E-1 with less than four months of active duty earns $2,144.10 before it increases to $2,319 per month.
- Senior enlisted members, grade E-9, can earn as much as $10,758 a month in certain posts.
- Officers in grades O-1 to O-6 can earn as much as $15,258.30 per month.
Key Takeaways
- $1,776 checks will be sent to 1.454 million service members as a “warrior dividend.”
- The payments are a nontaxable BAH supplement and will arrive before Christmas.
- Funding comes from the $2.9 billion appropriation in the One Big Beautiful Bill and tariff revenue.
The announcement underscores President Trump’s focus on military support and fiscal measures tied to his administration’s policy agenda.
