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US President Donald Trump on Wednesday announced a one-time bonus payment of $1,776 for American military personnel, calling it a “Warrior Dividend”. The White House said more than 1.45 million service members will receive the payment before Christmas.

Speaking in an address to the nation, Trump said the money would be paid as a reward for the military, funded through higher-than-expected tariff revenues. “The checks are already on the way,” Trump said, adding that the dividend honours the year 1776, when the United States was founded.

According to a White House statement, 1,450,000 active military service members will receive $1,776 each as a special, one-time payment. The administration said the amount was symbolic and linked to the nation’s founding year.

“In honour of our nation’s founding in 1776, we are sending every soldier $1,776,” the statement said.

Trump said the payment was made possible due to strong revenue collections from tariffs and recent Republican-backed tax legislation. “We made a lot more money than anybody thought because of tariffs,” he said. “Nobody deserves it more than our military.”

The payment will go to US military personnel and is expected to reach beneficiaries before Christmas. The move comes at a time when many Americans are facing high costs for groceries, housing, utilities and holiday spending, amid elevated inflation.

Trump has previously floated the idea of $2,000 checks for low- and middle-income Americans, though no such proposal was announced on Wednesday.

Political and economic messaging

In his speech, Trump blamed the previous Biden administration and Democrats for inflation and economic stress. “Eleven months ago, I inherited a mess, and I’m fixing it,” he said.

He also repeated claims about illegal immigration, saying it had raised costs for taxpayers and strained public services. Trump highlighted his administration’s immigration crackdown, claiming the US now has the “strongest border in the history of our country”.

Trump linked the Warrior Dividend to what he described as improved morale and recruitment in the armed forces. He said enlistment had seen a sharp turnaround over the past year.

“What a difference a year makes,” he said.

Framing the payment as part of a broader reset, Trump said his administration had restored American military strength and global standing. While the dividend is modest in size, it carries symbolic value, reinforcing Trump’s emphasis on nationalism, military support and economic self-reliance ahead of the US’ upcoming 250th anniversary celebrations.