President Donald Trump told Americans this week that 1.45 million U.S. service members would receive a one-time $1,776 "warrior dividend," a $2.6 billion initiative he said would hit service members’ bank accounts before Christmas. (Doug Mills/The New York Times/Bloomberg via Getty Images)
The money comes not from tariffs but from $2.9 billion that Congress appropriated in the "big beautiful bill" to the Department of War to supplement the Basic Allowance for Housing entitlement.
After taking office, Trump announced an aggressive tariff plan that paired targeted tariff increases with a broader proposal for a 10% across-the-board tariff on nearly all imported goods, a policy he argues would protect U.S. industry and raise substantial federal revenue. Countries he accused of engaging in unfair trade practices or "ripping off" the U.S. were hit with tariffs far above the 10% baseline: Brazil and India face 50% levies, and the average rate on Chinese goods is now close to 50% after Trump threatened triple-digit tariffs earlier this year.
The warrior dividend, according to the official, "exemplifies the Department’s ongoing commitment to improving the housing and quality of life for our military members and their families."
Additionally, the 2026 National Defense Authorization Act (NDAA) authorized a 3.8% raise for basic military pay for all service members in 2026.
A military policeman stands guard at JBSA-Lackland Air Force Base game, Wednesday, June 9, 2021, in San Antonio. The Air Force was put on lockdown as police and military officials say they searched for two people suspected of shooting into the base from outside. (Eric Gay/AP )
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The annual defense policy bill also includes a suite of quality-of-life enhancements designed to support service members and their families. Lawmakers authorized a 60% increase in the Family Separation Allowance, raising it to $400 per month for troops separated from their dependents, and directed studies aimed at improving how housing and subsistence allowances are calculated to better reflect real-world costs.
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The legislation funds expanded child care programs, including extensions of in-home child care assistance, and boosts resources for spouse employment support, housing condition evaluations, and mental health care access. It also provides for increased educational impact aid for military-connected students and additional support for families facing relocation or deployment challenges.
The new measures come after years of documented quality-of-life challenges inside the military — from rising housing costs and shortages of childcare to persistent issues with pay, barracks conditions, and family support — problems lawmakers say these initiatives are designed to begin addressing.
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