President Donald Trump announced “Warrior Dividend” bonuses for the military in a Dec. 17 televised address.

According to the president, the additional payment will be sent to members of the U.S. Armed Forces as a holiday bonus.

Here is what we know about the payments.

Bonus Details

In announcing the payments, Trump said military members would get $1,776 as a non-taxable supplement to their income in time for the Christmas holiday.

“Tonight, I am ... proud to announce that ... [1.45 million] military servicemembers will receive a special ... ‘Warrior Dividend’ before Christmas,” Trump said during a White House speech to the nation.

According to the president, the payments will go to all eligible active-duty and reserve servicemembers “in honor of [the] nation’s founding in 1776.”

According to Trump, the checks “are already on the way,” because “nobody deserves it more than [the U.S.] military.”

“I say congratulations to everybody,” he said.

Who Is Eligible

There are currently 1.28 million active-duty military members and 174,000 reserve component military members who are eligible for the dividend.

These include members who have served for at least 31 days on active duty as of Nov. 30 this year and who are at pay grades of O-6 and below as of the same date. This means at or below the rank of colonel in the Army, Marine Corps, Air Force, or Space Force or at or below the rank of captain in the Navy or Coast Guard.

During his announcement, the president said military recruitment numbers are at unprecedented levels.

“We now have record enlistment [numbers] in our military,” he said. “Last year, we had among the worst recruitment numbers in our military’s history—a lot of difference a year makes.”

According to Secretary of War Pete Hegseth, this special payment represents the approaching 250th anniversary of the United States and the nation’s military.

In a video posted to social media, Hegseth said of the year 1776: “As you know, our great nation was founded in the crucible of revolution in that year.

“Now, as we enter the Christmas season, some 250 years later, we are proud to provide ‘1776’ with a whole new modern meaning for our joint force.”

Funding Source

Funding for the dividends was allocated in the president’s signature One Big Beautiful Bill Act, signed into law earlier this year.

“We are grateful to President Trump, [Senate Armed Services Committee Chairman Roger Wicker (R-Miss.)], [Senate Armed Services Committee Chairman Mike Rogers (R-Ala.)], and the other members of Congress who have made this Warrior Dividend possible through the One Big Beautiful Bill Act,” Jules W. Hurst III, who is performing the duties of comptroller for the War Department, said in a statement.

“This payment is a ’thank you' from President Trump, the American people and Congress. The Department of War deeply appreciates the service of our military members and the sacrifices of their families.”

The funds will officially be classified as a one-time supplement to the Basic Allowance for Housing monthly stipend for servicemembers.

The Secretary of War in his video said this was “yet another example of how the War Department is working to improve the quality of life for [U.S.] military personnel and their families.”

“All elements of what we’re doing are to rebuild our military,” he said.

More From Leadership

Trump also pointed to administration goals made possible by the military, noting the efforts of servicemembers to secure the U.S.–Mexico border.

The president in his address to the nation noted other ways his administration is working to improve the lives of Americans, including by imposing tariffs on U.S. trading partners and taking actions to lower the price of fuel and housing.

Trump suggested that the increase in illegal immigration seen under the previous administration raised housing prices for Americans.

“For the first time in 50 years, we are now seeing reverse migration, as migrants go back home, leaving more housing and more jobs for Americans. ... When the world looks at us next year, let them see a nation that is loyal to its citizens, faithful to its workers, confident [in] its identity, certain [in] its destiny, and the envy of the entire globe,” Trump said.

Hegseth offered a note of thanks to the military members receiving the additional payment, saying: “To every American warrior, President Trump and I, and the War Department, have your back. Enjoy the Warrior Dividend. You’ve earned it. Thank you for your service, and we thank you for your sacrifice, and we wish you and your family a very merry Christmas.”

Jacob Burg contributed to this report.