More details released about $1,776 ‘warrior dividend’ payment announced by Trump
More than 1.45 million military service members will receive a one-time payment of $1,776 by Saturday aimed at improving troops’ quality of life, according to Trump administration officials.
During a primetime address Wednesday night from the White House, President Donald Trump announced the so-called “warrior dividend,” saying that the dollar amount is in honor of the nation’s founding in 1776.
“Nobody deserves it more than our military,” he added.
Trump said “every soldier” will receive the payment.
However, on Thursday morning senior administration officials clarified that it will only be available for eligible service members in pay grades O-6 and below. In the Army, Marine Corps, Air Force and Space Force, the O-6 rank is colonel — for the Navy, it’s captain.
That means general officers and flag officers won’t receive the “warrior dividend.”
In response to queries from DefenseScoop, Trump administration officials did not specify why top brass are being excluded from the bonus.
In a video released on X Thursday morning, Secretary of Defense Pete Hegseth said the payment will go to “every member of our military E-1 to O-6,” calling it a “direct investment in the brave men and women who carry on the legacy of our armed forces every single day.”
“This warrior dividend serves as yet another example of how the War Department is working to improve the quality of life for our military personnel and their families. I can think of no better Americans to receive this check right before Christmas,” he added, using an alternative name authorized by Trump to refer to the Defense Department.
A senior administration official told DefenseScoop that under Trump’s leadership, Hegseth has directed the DOD to disburse a total of $2.6 billion as “a one-time basic allowance for housing supplement to all eligible service members in pay grades O-6 and below” — but it will also entail compensating eligible recipients who aren’t currently receiving basic allowance for housing (BAH).
Active-duty service members in the pay grades of O-6 and below and on active duty as of Nov. 30, as well as Reserve component members on active-duty orders of 31 days or more as of Nov. 30, are eligible for the payment, according to officials.
Approximately 1.28 million troops in the Active component and 174,000 in the Reserve component are expected to receive the “supplement.”
The funding for the initiative will be taken from a large pool of money allocated in the One Big Beautiful Bill Act that was signed into law in July, according to the Trump administration.
A provision of that legislation included $2.9 billion to “supplement the basic allowance for housing payable to members of the Army, Air Force, Navy, Marine Corps, and Space Force.”
“The Secretary of War directed the Department to use some of the Basic Allowance for Housing funds to provide a one-time payment to service members during this holiday season to help improve their housing and quality of life,” a Pentagon official told DefenseScoop, using an alternative name authorized by Trump to refer to the secretary of defense.
“The remaining $300 million will be utilized by the Department to support future BAH requirements,” they added.
The $1,776 payments to eligible troops will be made outside of the regular pay cycle by Saturday, according to the official.
Although the Coast Guard is considered a military service, it falls under the Department of Homeland Security, and it appears that Coast Guardsmen aren’t eligible for the one-time bonus announced by Trump.
