The one-time bonuses President Donald Trump mentioned Wednesday will likely be paid out to over one million US service members will likely be pulled from funds already authorised by Congress to cowl housing and different family prices for troops as a part of a navy stipend program.
President Trump introduced the $1,776 bonuses in an deal with to the nation, dubbing them a “warrior dividend.”
“Nobody deserves it more than our military, and I say congratulations to everybody,” Trump mentioned, crediting his home coverage invoice which was handed earlier this 12 months and tariffs, which he mentioned made the US “a lot more money than anybody thought.”
However, a senior administration official mentioned the $2.6 billion price of the bonuses was being taken from $2.9 billion in further funding for primary allowance for housing, or BAH, funds appropriated by Congress in July, NCS reported.
The supplemental funds had been marked for “improving the quality of life for military personnel” inside what Trump labeled the “Big Beautiful Bill.”
BAH is a further type of cost to many troops that’s meant to cowl dwelling bills for navy households. The stipends range based mostly on rank, geography and whether or not the service member has dependents, with navy household advocates arguing that the funds typically don’t totally cowl bills for these dwelling in higher-cost areas.
It’s unclear if the supplemental funds authorised by Congress had been meant for something particular, comparable to offsetting housing prices in these costlier areas. Congress had beforehand authorised base funding for the stipend, and although it signed off on the additional funding, it had given the Pentagon broad discretion on the way to use the money to assist troops with the price of dwelling.
A report final 12 months from the Government Accountability Office discovered that the Pentagon “does not routinely assess the negative financial and quality-of-life effects that limited supply or unaffordable housing has on affected service members.”
“During GAO visits to selected DoD sites, some service members reported having to take on debt or commute long distances to afford quality housing,” the report mentioned.
The bonuses will go to active-duty members on the rank of O-6 — officers on the rank of colonel within the Army, Air Force, and Marine Corps, and Captain within the Navy — and under, in addition to reserve element members on active-duty orders for 31 or extra days as of November 30, in response to a White House social media publish. That would imply some troops who don’t at present obtain BAH stipends, comparable to junior troops dwelling in barracks, may nonetheless get the bonuses.
“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,” Defense Secretary Pete Hegseth mentioned in a video posted to social media on Thursday, referring to the Defense Department’s secondary title of War Department. “I can think of no better Americans to receive this check right before Christmas. Whether it’s for pay, housing, faith support, all elements of what we’re doing are to rebuild our military.”
It’s unclear what impression if any pulling funds from the supplemental BAH funds may have. The Pentagon commonly will increase the BAH charge for service members, and earlier this month introduced a 4.2% improve to the stipend for subsequent 12 months.
The advantage of pulling the funds from the housing stipend is that these allowances are tax-free, Beth Asch, a senior political economist at RAND Corporation, informed NCS.
But the bonuses mustn’t take away from the anticipated BAH allowance charges established for subsequent 12 months, Asch mentioned.
“The rate is going to go up as it usually goes up using the same methodology that’s been used year after year after year,” Asch mentioned.
NCS’s Kit Maher contributed to this report