In a primetime address from the White House on December 17, 2025, President Donald Trump announced that approximately 1.45 million U.S. military service members will receive a one-time $1,776 “warrior dividend” bonus before Christmas, funded in part by revenues from his administration’s tariffs.
Flanked by Christmas trees in the Diplomatic Reception Room, Trump described the payment as a patriotic gesture honoring the nation’s founding in 1776, stating the checks were “already on the way” and that “nobody deserves it more than our military.”
The announcement comes as the U.S. economy faces persistent challenges, with inflation running at around 3% annually — up from earlier in the year following the implementation of broad tariffs in April.
Consumer prices have risen, contributing to public anxiety over costs for groceries, housing, utilities, and holiday spending.Trump blamed lingering inflation on policies inherited from his predecessor, former President Joe Biden, saying, “Eleven months ago, I inherited a mess, and I’m fixing it.”
He presented charts highlighting positive indicators, such as stock market gains, lower gasoline prices, and investments in artificial intelligence.However, the labor market has shown signs of softening, with recent monthly job gains averaging in the low tens of thousands since the tariff rollout, amid broader economic adjustments.
The bonus, estimated to cost around $2.5 billion, highlights Trump’s focus on supporting the armed forces while defending his tariff policies as a source of revenue and economic strength. Public opinion polls indicate growing frustration with economic conditions ahead of the 2026 midterm elections.
The move has drawn mixed reactions, with supporters praising it as a show of appreciation for troops and critics viewing it against the backdrop of broader affordability pressures for American households.

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