President Donald Trump announced on Wednesday that more than a million troops will receive $1,776 checks, which come from money approved by Congress. A senior administration official confirmed these payments are part of a special funding plan meant to help military members with their housing costs.
During a prime-time TV speech, Trump said he was “proud” to announce that 1.45 million military members will get a special payment called the “warrior dividend” before Christmas.
He noted the check amount is $1,776 and added that the payments are already being sent out.
The senior official told Defense One that Defense Secretary Pete Hegseth ordered the Pentagon to send out $2.6 billion as a one-time boost to the Basic Allowance for Housing, or BAH.
This payment is meant to help service members cover rent, mortgages, and utilities, and it’s available to all eligible troops with a rank of 0-6 or below.
The official said Congress approved $2.9 billion for this purpose as part of the “One, Big, Beautiful Bill.”
Around 1.28 million active-duty soldiers and 174,000 reserve members will get this extra support.
Lawmakers have been urging Pentagon officials to follow their guidance for the over $150 billion allocated for defense in the reconciliation bill.
The $2.9 billion aimed at helping with BAH comes even as some service members say the benefit isn’t enough, especially with rising housing costs. A January 27th report from Rand found that while BAH is generally sufficient, it sometimes falls short when housing prices change quickly.
The official said that active-duty and reserve troops who have been on active orders for 31 days or more by November 30, 2025, are eligible for this benefit if they are in ranks 0-6 or lower.
The senior administration official said the Trump administration wants to support service members with this one-time Warrior Dividend, with the goal of improving housing and overall quality of life for troops and their families.
The Pentagon recently announced the 2026 BAH rates, which will rise by about 4.2% on January 1, 2026.
During confirmation hearings, Senate Armed Services Chairman Roger Wicker said much of the defense funding is not specific and relies on the Pentagon’s discretion.
He has asked nominees to commit to following Congress’s spending guidance.
Other leaders, like Ranking Member Jack Reed, have expressed doubts that the Pentagon will stick strictly to the plans.
Wicker praised the $1,776 checks, saying they will go along with the upcoming BAH increases and a nearly 4% pay raise for troops included in the 2026 defense policy bill.
Some lawmakers are also looking at how the Trump administration is moving military funds.
A recent report from Senators Elizabeth Warren and John Garamendi said $2 billion has been reallocated to border security from other DOD and Homeland Security projects, including building barracks, hangars, and schools.
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