President Donald Trump announced Friday that about 1.45 million US military servicemembers will receive $1,776 bonus payments, funded through tariff revenues, framing the move as a reward for service and a dividend of his trade policy as critics question the sustainability and impact of using import taxes for military compensation.
In a nationally televised address, Trump said about 1.45 million members of the armed forces would each receive $1,776 before Christmas, a figure chosen to reflect the year 1776. He said the payments were already being processed.
According to the president, stronger-than-expected revenue from tariffs helped make the initiative possible, although he did not spell out the precise funding mechanism. Trump argued that the military was the most deserving recipient of the funds, adding that tariff income had exceeded earlier projections.
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Further details provided by a senior administration official revealed that Defense Secretary Pete Hegseth had authorized the Pentagon to disburse roughly $2.6 billion as a one-time housing-related allowance. The payment will apply to eligible service members in pay grades O-6 and below.
The official said approximately 1.28 million active-duty personnel and about 174,000 reserve members are expected to benefit from the payout.
Earlier this year, Congress approved about $2.9 billion for the Defense Department under Trump’s policy agenda, allocating the funds to support enhancements to the Basic Allowance for Housing. The White House has since rebranded the department as the Department of War.
The administration said the payment reflects a broader effort to improve living conditions and overall welfare for military members and their families, framing it as part of a long-term quality-of-life initiative within the armed forces.