Trump said his administration is proudly doling out special Independence Day–themed "warrior dividend" checks of $1,776 to service members, with the payments set to go out ahead of Christmas. "Military service members will receive a special ... warrior dividend before Christmas," Trump announced during his address to the nation on Wednesday night.
"A warrior dividend in honor of our nation's founding in 1776, we are sending every soldier $1,776. And the checks are already on the way," he added. It remains unclear what legal authority Trump is relying on to issue those payments. The cost of paying the large number of military personnel is estimated to be in millions.
Trump's Christmas Gift
Earlier that same day, however, the Senate approved the National Defense Authorization Act and sent it to Trump for signing, a legislation that includes a 3.8% pay raise for service members.
There are roughly 1.45 million active-duty service members in the U.S. military, putting the total cost of the program at an estimated $2.6 billion.
Trump suggested that the one-time bonus payments were made possible by revenue from his wide-ranging tariffs. However, many of those tariffs face an uncertain future, as the Supreme Court signaled last month that it may be skeptical of the legal grounds used to impose them.
"We made a lot more money than anybody thought because of tariffs," he added. "Nobody deserves it more than our military, and I say congratulations to everybody."
The president has also suggested plans of sending around $2,000 "tariff dividend" checks to American families below an as-yet undefined income threshold next year.
That proposal, however, is expected to face significant hurdles — both in Congress and potentially at the Supreme Court. A majority of justices have signaled skepticism about Trump's reliance on the International Emergency Economic Powers Act (IEEPA) to justify the tariffs that would fund such payments.
Notably, Trump made no mention of the proposed tariff dividends during his national address on Wednesday night.
Tariff Money in American Homes
The payments to service members come as Trump works to sharpen his focus on affordability, an issue that has become increasingly central to the political landscape. Last month's off-year elections saw Democrats score sweeping victories, driven largely by voter frustration over the rising cost of living.
Those results have heightened Republican concerns that the party could be headed for a tough setback in next year's midterm elections.
During his roughly 20-minute address, Trump spent much of the time highlighting initiatives he says are aimed at easing financial pressures on Americans. He also devoted a substantial portion of the speech to criticizing Democrats' past stewardship of the economy, as he looks to reassert himself on an issue where voters remain deeply concerned.
"Eleven months ago, I inherited a mess, and I'm fixing it," he declared in the address, which took place in the Diplomatic Reception Room adorned with festive Christmas decorations.
Along with honoring the nation's founding through the Independence Day–themed $1,776 checks, Trump also pointed out that the United States will mark its 250th anniversary next year.
"We're poised for an economic boom the likes of which the world has never seen," Trump said. "Soon, we will host the World Cup and the Olympics, both of which I got, but most importantly, we will celebrate the 250th anniversary of the Declaration of Independence.
"There could be no more fitting tribute to this epic milestone than to complete the comeback of America that began just one year ago," he added.
