Trump gives military a $1,776 holiday bonus, insists economy is just fine
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President Trump in the White House's Diplomatic Reception Room on Dec. 17. Photo: Doug Mills/Pool/Getty Images
President Trump announced Wednesday night that some members of the military will receive a $1,776 "warrior dividend," while touting his tariffs and economic policies more broadly.
Why it matters: The president's move comes as the administration tackles an affordability problem that has been hurting Republicans in recent elections, and as Trump's approval ratings on his handling of the economy have reached a record low.
What they're saying: "Tonight, I am also proud to announce that 1,450,000 military service members will receive a special, we call, a 'warrior dividend' before Christmas," Trump said in his speech.
- "In honor of our nation's founding in 1776, we are sending every soldier $1,776. Think of that, and the checks are already on the way."
- "We made a lot more money than anybody thought because of tariffs, and the [Big Beautiful] Bill helped us along. Nobody deserves it more than our military, and I say congratulations to everybody."
Catch up quick: Catch up quick: While the president implied in his speech that the checks would be paid for with the administration's tariff revenues this year, the bonuses will be primarily funded through provisions in Trump's signature "big, beautiful bill," the Pentagon told Axios.
The big picture: Trump used his 18-minute speech to tout many of his key policy measures, but spent most of the time telling Americans that the price of everything from Thanksgiving turkeys to utility bills have declined since he took office.
- The president also continually blamed President Biden and Democrats for the economic mess he inherited, but said that his policies would pay off next year.
- "We're doing what nobody thought was even possible, not even remotely possible. There has never, frankly, been anything like it. One year ago, our country was dead. We were absolutely dead. Our country was ready to fail. Totally failed. Now we're the hottest country anywhere in the world," he said.
Zoom in: Trump and some of his most high-profile messengers have recently transitioned back into rally mode to tout the gains from the president's tariff policy and the slew of tax relief-related priorities he secured in his signature bill earlier this year.
- The president's team insists that the economy will soar in 2026, despite persistent inflation and a drooping job market.
Zoom out: The push appears partially to counteract a series of polls and reports indicating that Americans are feeling the pinch in their wallets.
- That financial pressure has led to Republicans losing or winning with unexpectedly tight margins in several elections this year, which could spell trouble for the GOP in the 2026 midterms.
- It's a sticky situation – Trump is being dogged by the same problem Biden faced last year when voters weren't feeling his message on the strength of America's economy.
Go deeper: Trump's approval rating on the economy hits record low 31%
Editor's note: This story has been updated to reflect that the Pentagon says the dividends will be paid from the "one big, beautiful bill" (not directly from tariff revenues) and that some (not all) members of the military will receive it.
