President Donald Trump is putting cash behind his commander-in-chief promise — announcing a one-time $1,776 “warrior dividend” for America’s service members, a move framed as both a financial boost and a patriotic salute to the nation’s founding.
The announcement, delivered Wednesday night during a nationally televised address, immediately set off buzz across the ranks. Service members wanted answers — who qualifies, when the money hits, whether it’s taxed, and if it affects existing pay or benefits.
Those questions were quickly put to rest.
Defense Secretary Pete Hegseth confirmed Thursday morning that the payments will be tax-free and sent to more than 1.45 million service members “in the coming days,” with some expected before Christmas.
In a video posted to X, Hegseth said the dividend gives “a whole new modern meaning” to 1776, linking the American Revolution to today’s joint force — and praising Trump’s “unwavering commitment” to the military.
“This has never happened before, every member of our military from E-1 to O-6,” Hegseth said.
Watch the clip below:
Introducing the (tax free!) Warrior Dividend. pic.twitter.com/dz1Ol8kzZS
— Secretary of War Pete Hegseth (@SecWar) December 18, 2025
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