President Donald Trump and Secretary of War Pete Hegseth listen during a Cabinet Meeting in the White House in Washington, D.C. (Andrew Caballero-Reynolds/AFP via Getty Images)
"And the checks are already on the way," Trump said during a Dec. 17, 2025, primetime address from the White House, crediting tariffs and recently passed GOP spending and tax legislation for funding the payments.
"Nobody deserves it more than our military. And I say congratulations to everybody," he added.
According to the IRS, Congress appropriated $2.9 billion in legislation enacted last July to supplement the basic allowance for housing payable to members of the uniformed services, with the one-time $1,776 payments funded by that appropriation.
The IRS said the supplemental payments were made primarily to active-duty service members in pay grades O-6 and below, along with eligible Reserve Component members as of Nov. 30, 2025, across the Army, Air Force, Navy, Marine Corps and Space Force.
TRUMP SIGNS 'MEDAL OF HONOR ACT' TO RAISE PENSIONS FOR AMERICA'S MILITARY HEROES
Secretary of War Pete Hegseth said the IRS news points to 'what we're doing to rebuild our military.' (Alex Wong/Getty Images)
"What a difference a year makes," Trump said.
Secretary of War Pete Hegseth said the dividend reflects a broader push to improve quality of life for military families.
"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," Hegseth said. "All elements of what we’re doing are to rebuild our military.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
The Department of War and the Internal Revenue Service did not immediately respond to Fox News Digital's request for additional comment.
Fox News Digital's Alec Schemmel contributed to this reporting.
Jasmine Baehr is a Breaking News Writer for Fox News Digital, where she covers politics, the military, faith and culture.
https://www.foxnews.com/politics/irs-confirms-trump-ordered-1776-warrior-dividend-troops-tax-free