Federal Budget and Tax Policy

President Trump ordered a one-time, tax-free $1,776 "warrior dividend" — tied to 1776 and the 250th anniversary of U.S. military service — to be paid as a Basic Allowance for Housing supplement to about 1.45 million service members (roughly 1.28 million Active and 174,000 Reserve members) in pay grades O‑6 and below, including reservists on active-duty orders of 31+ days as of Nov. 30. The roughly $2.6 billion payout is being funded from a $2.9 billion congressional appropriation in the new "One Big Beautiful Bill" (not directly from tariffs), is being processed to arrive before Dec. 20, and was publicly promoted by the administration and Defense Secretary Pete Hegseth as support for troops.