• Trump announces a $1,776 bonus for 1.45 million military service members.
• The "warrior dividend" is funded by tariffs and a recently signed spending bill.
• Checks are expected to be distributed before December 20.

In a recent address, President Donald Trump announced that over 1.4 million U.S. military service members will receive a one-time $1,776 bonus, referred to as a "warrior dividend," before Christmas. This payment aims to thank service members for their contributions and commemorate the 250 years of military service in the U.S. It is expected that the checks will be delivered before December 20, providing timely financial relief to military families during the holiday season, according to CBS News and Indiatimes.

Trump stated that the funding for the payments is derived from tariffs and a significant tax and spending bill, dubbed the "One Big Beautiful Bill Act," which he signed earlier this year. The total allocation for these bonuses is projected at approximately $2.6 billion, with funds being drawn from a larger $2.9 billion earmarked for the Department of Defense to aid housing costs for service members, according to ABC News and CBS News.

The "warrior dividend" represents a significant financial acknowledgment aimed particularly at active-duty service members in pay grades O-6 and below, as well as reserve component personnel on active-duty orders of 31 days or more as of November 30. The payments are non-taxable at the federal level, offering a much-appreciated boost during a period of inflation and increasing living costs, according to Indiatimes and CBS News.

During his address, Trump assured military personnel that "the checks are already on the way," emphasizing the commitment of his administration to support service members. The payments are framed as both a holiday gift and a recognition of the demands of military life, as the President promotes these funds as a means of alleviating financial pressures, according to ABC News and Indiatimes.