President Donald Trump’s promise Wednesday to pay troops a “warrior dividend” bonus is actually a military housing stipend already approved by Congress, and not a generous new White House program.
The rebrand, confirmed by a senior administration official and two congressional officials, follows a pattern for the president, who has previously claimed credit for routine military pay increases that weren’t his doing.
The $1,776 per person bonuses, unveiled by Trump in his nationwide address Wednesday night, will be covered with funding approved in the Big Beautiful Bill that passed in July, according to the congressional officials and later confirmed by the Pentagon.
The payouts — which will cost roughly $2.6 billion — will be a “one-time basic allowance for housing supplement to all eligible service members,” said the official, who like others, was granted anonymity to discuss a sensitive issue.
Trump, in his address, touted the money as a reward for troops’ service and sacrifice. “Nobody deserves it more than our military,” he said.
But the money will tap into the $2.9 billion approved for military housing supplements as part of the congressional budget reconciliation package, according to the Hill officials. Lawmakers included the money amid concerns that housing stipends have not fully covered military families’ cost-of-living in recent years.
The Pentagon did not respond to a request for comment.
Defense Secretary Pete Hegseth noted Thursday on X that the money will be tax-free and said the effort shows the Defense Department is “working to improve the quality of life for our military personnel and their families.”
White House officials also did not respond to questions about whether Trump mischaracterized the bonus.
“President Trump’s administration recognizes the hard work of our service members with this one-time warrior dividend, which places funds directly in the hands of our military members and their families,” the White House said in a statement.
Trump, in his speech, implied the money for the military bonuses was coming from new tariff revenue. But White House officials would not confirm that, and the congressional official said tariff revenues won’t have anything to do with the payments.
The White House has a limited ability to move tariff funds without congressional direction, as revenue generated by the federal government flows into the Treasury and Congress decides how to use it.
The military bonuses will arrive about a week before troops receive their annual pay raise, set at 3.8 percent for 2026.
Trump has made similar mischaracterizations before. During a May speech to U.S. troops stationed in Qatar, Trump promised a “substantial” pay raise in 2026 to help rebuild the military and reward the troops.
But the increase — included in the annual defense authorization bill passed by Congress on Wednesday — follows federal formulas for keeping pace with civilian wages, and is not any more generous than previous administration plans.
During his first term in office, Trump frequently bragged that he gave military members their first pay raise in years, even though all servicemembers have received an annual boost in salary every year since the 1970s.
The president said Wednesday that the bonus amount was chosen “in honor of our nation’s founding in 1776.” The country will mark its 250th anniversary next year, and Trump referenced plans for the celebration in his address.
About 1.45 million troops are expected to receive the money. Senior officers will not see any payouts, but most junior officers, all enlisted troops and some reservists will receive the bonuses.
Troops who do not receive housing allowances may still be eligible for the bonuses.
The new bonus won’t be the largest pay bump most troops see this year. Congress last year approved a raise of up to 14.5 percent for troops ranked E-4 and below as part of an effort to boost all military salaries amid years of recruiting challenges. That went into effect in April, adding between $3,000 and $6,000 in extra pay for tens of thousands of troops.
Connor O’Brien, Daniel Desrochers and Jennifer Scholtes contributed to this report.
