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Trump's new $1,776 ‘Warrior Dividend’ to troops is coming from Pentagon funding, not tariffs

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Trump's new $1,776 ‘Warrior Dividend’ to troops is coming from Pentagon funding, not tariffs
News

News

Trump's new $1,776 ‘Warrior Dividend’ to troops is coming from Pentagon funding, not tariffs

2025-12-19 05:57 Last Updated At:06:01

WASHINGTON (AP) — The “Warrior Dividend” that President Donald Trump announced during his televised address to the nation Wednesday is not a Christmas bonus made possible by tariff revenues, as the president suggested.

Instead, the $1,776 payments to troops are coming from a congressionally-approved housing supplement — money they were already set to receive — that was a part of tax cut extensions and expansions bill signed into law in July. Trump's administration identified the source of the “dividend” payments Thursday.

In his remarks, Trump alluded to his “One Big Beautiful Bill Act” playing a role, but suggested that tariffs were largely responsible for the payments already on the way to 1.45 million members of the military.

“We made a lot more money than anybody thought because of tariffs and the bill helped us along. Nobody deserves it more than our military," he said in announcing what he described as a “dividend.”

Trump has teased the idea of using his sweeping tariffs on imports to give Americans dividends ever since he imposed them in April. But these new payments are being disbursed by the Pentagon from a $2.9 billion military housing supplement that was part of Trump's “One Big Beautiful Bill Act" to augment existing housing allowances, according to a senior administration official who requested anonymity to describe the payments.

The amount of the payments is a nod to next year’s 250th anniversary of the signing of the Declaration of Independence in 1776. In total, the measure is expected to cost $2.6 billion.

Trump’s announcement comes as he’s faced pressure to show he’s working to address rising costs for Americans, with prices remaining stubbornly high as the president has imposed double-digit tariffs on imports from almost every country. Trump has promised to lower prices, but he has struggled to do so. Inflation hit a four-decade high in June 2022 during Joe Biden’s presidency and then began to fall. But inflation has stayed elevated under Trump in part because of his tariffs.

Separately, members of the U.S. Coast Guard will be getting a similar one-time payment, the Department of Homeland Security announced Thursday. The "Devotion to Duty" payments, authorized by Secretary Kristi Noem a day earlier, will be $2,000 because, unlike the “Warrior Dividend,” they are subject to taxes. The amount Coast Guard members take home will be closer to $1,776.

The payments, according to the Coast Guard, will be classified as “special duty pay." They will be paid for with money in a measure Trump signed in November, after a 43-day shutdown, that funds the government through January.

Sending money to voters is a timeworn tool for politicians and one that Trump has repeatedly tried to use, including this year.

Trump has for months suggested every American could receive a $2,000 dividend from the import taxes — an effort that seemed designed to try to shore up support for tariffs, which the president has said protect American industries and will lure manufacturing back from overseas.

But that particular pledge appeared to exceed the revenues being generated by his tariffs, according to a November analysis by the right-leaning Tax Foundation. The analysis estimated that the $2,000 payments being promised to taxpayers could add up to between $279.8 billion and $606.8 billion, depending on how they were structured.

The analysis estimated that Trump’s import taxes would produce $158.4 billion in total revenue during 2025 and another $207.5 billion in 2026. That’s not enough money to provide the payments as well as reduce the budget deficit, which Trump has also claimed his tariffs are doing.

Earlier this year, as his Department of Government Efficiency was slashing the U.S. government and its workforce, Trump had briefly proposed sending a DOGE “dividend” back to U.S. citizens.

Neither the tariff dividend or DOGE dividend has come to fruition, and members of Trump's own party as well as officials in his administration have expressed some skepticism about the idea. There is also the risk that the payments being promised by Trump could push up inflation, as they would likely spur greater consumer spending. Republican lawmakers argued in 2021 that the pandemic relief package from then-President Biden — which included direct payments — helped trigger the run-up in inflation.

Associated Press writers Rebecca Santana, Konstantin Toropin and Lisa Mascaro contributed to this report.

President Donald Trump speaks during an address to the nation from the Diplomatic Reception Room at the White House, Wednesday, Dec. 17, 2025, in Washington. (Doug Mills/The New York Times via AP, Pool)

President Donald Trump speaks during an address to the nation from the Diplomatic Reception Room at the White House, Wednesday, Dec. 17, 2025, in Washington. (Doug Mills/The New York Times via AP, Pool)

PROVIDENCE, R.I. (AP) — Authorities said Thursday that they're looking into a connection between last weekend's mass shooting at Brown University and an attack two days later near Boston that killed a professor at another elite school, the Massachusetts Institute of Technology.

That is according to three people familiar with the matter who were not authorized to discuss an ongoing investigation and spoke on condition of anonymity. Two of the people said investigators had identified a person of interest in the shootings and were actively seeking that individual.

The attacker at Brown on Saturday killed two students and wounded nine others in a classroom in the school's engineering building before getting away.

About 50 miles (80 kilometers) north, MIT professor Nuno F.G. Loureiro was gunned down in his home Monday night in the Boston suburb of Brookline. The 47-year-old physicist and fusion scientist died at a hospital the next day.

The FBI previously said it knew of no links between the cases.

It's been nearly a week since the shooting at Brown. There have been other high-profile attacks in which it took days or longer to make an arrest, including in the brazen New York City sidewalk killing of UnitedHealthcare's CEO last year, which took five days.

But frustration is mounting in Providence that the person behind the attack managed to get away and that a clear image of their face has yet to emerge.

“There’s no discouragement among people who understand that not every case can be solved quickly,” the state attorney general, Peter Neronha, said at a news conference Wednesday.

Authorities have scoured the area for evidence and pleaded with the public to check any phone or security footage they might have from the week before the attack, believing the shooter might have cased the scene ahead of time.

Investigators have released several videos from the hours and minutes before and after the shooting that show a person who, according to police, matches witnesses' description of the shooter. In the clips, the person is standing, walking and even running along streets just off campus, but always with a mask on or their head turned.

Although Brown officials say there are 1,200 cameras on campus, the attack happened in an older part of the engineering building that has few, if any, cameras. And investigators believe the shooter entered and left through a door that faces a residential street bordering campus, which might explain why the cameras Brown does have didn’t capture footage of the person.

Providence Mayor Brett Smiley said Wednesday that the city is doing “everything possible” to keep residents safe. However, he acknowledged that it is “a scary time in the city” and that families likely were having tough conversations about whether to stay in town over the holidays.

“We are doing everything we can to reassure folks, to provide comfort, and that is the best answer I can give to that difficult question,” Smiley said when asked if the city was safe.

Although it’s not unheard of for someone to disappear after carrying out such a high-profile shooting, it is rare.

In such targeted and highly public attacks, the shooters typically kill themselves or are killed or arrested by police, said Katherine Schweit, a retired FBI agent and expert on mass shootings. When they do get away, searches can take time.

“The best they can do is what they do now, which is continue to press together all of the facts they have as fast as they can,” she said. “And, really, the best hope for solutions is going to come from the public.”

In the 2013 Boston Marathon bombing, it took investigators four days to catch up to the two brothers who carried it out. In a 2023 case, Army reservist Robert Card was found dead of an apparent suicide two days after he killed 18 people and wounded 13 others in Lewiston, Maine.

The man accused of killing conservative political figure Charlie Kirk in September turned himself in about a day and a half after the attack on Utah Valley University's campus. And Luigi Mangione, who has pleaded not guilty to murder charges in the killing of UnitedHealthcare CEO Brian Thompson in Manhattan last year, was arrested five days later at a McDonald's in Pennsylvania.

Felipe Rodriguez, a retired New York police detective sergeant and adjunct professor at the John Jay College of Criminal Justice, said it’s clear that shooters are learning from others who were caught.

“Most of the time an active shooter is going to go in, and he’s going to try to commit what we call maximum carnage, maximum damage,” Rodriguez said. “And at this point, they’re actually trying to get away. And they’re actually evading police with an effective methodology, which I haven’t seen before.”

Investigators have described the person they are seeking as about 5 feet, 8 inches (173 centimeters) tall and stocky. The attacker's motives remain a mystery, but authorities said Wednesday that none of the evidence suggests a specific person was being targeted.

Loureiro, who was married, joined MIT in 2016 and was named last year to lead the school's Plasma Science and Fusion Center, where he worked to advance clean energy technology and other research. The center, one of MIT's largest labs, had more than 250 people working across seven buildings when he took the helm. He was a professor of physics and nuclear science and engineering.

He grew up in Viseu, in central Portugal, and studied in Lisbon before earning a doctorate in London, according to MIT. He was a researcher at an institute for nuclear fusion in Lisbon before joining MIT, the university said.

“He shone a bright light as a mentor, friend, teacher, colleague and leader, and was universally admired for his articulate, compassionate manner,” Dennis Whyte, an engineering professor who previously led MIT’s Plasma Science and Fusion Center, told a campus publication.

Loureiro had said he hoped his work would shape the future.

“It’s not hyperbole to say MIT is where you go to find solutions to humanity’s biggest problems,” Loureiro said when he was named to lead the plasma science lab last year. “Fusion energy will change the course of human history.”

This story was updated to delete a reference to MIT being an Ivy League school.

Richer and Tucker reported from Washington. Associated Press reporters Mark Scolforo in Harrisburg, Pennsylvania, and Hallie Golden in Seattle contributed.

A pedestrian walks along Brown University's campus on Thayer St. in Providence, R.I., Wednesday, Dec. 17, 2025. (Lily Speredelozzi/The Sun Chronicle via AP)

A pedestrian walks along Brown University's campus on Thayer St. in Providence, R.I., Wednesday, Dec. 17, 2025. (Lily Speredelozzi/The Sun Chronicle via AP)

This image taken from video provided by the FBI shows a person of interest in the investigation of the shooting that occurred at Brown University, in Providence, R.I., Saturday, Dec. 13, 2025. (FBI via AP)

This image taken from video provided by the FBI shows a person of interest in the investigation of the shooting that occurred at Brown University, in Providence, R.I., Saturday, Dec. 13, 2025. (FBI via AP)

A poster seeking information about the campus shooting suspect is seen on the campus of Brown University, Wednesday, Dec. 17, 2025, in Providence, R.I. (AP Photo/Robert F. Bukaty)

A poster seeking information about the campus shooting suspect is seen on the campus of Brown University, Wednesday, Dec. 17, 2025, in Providence, R.I. (AP Photo/Robert F. Bukaty)

A woman lights a candle at a memorial set up in front of the Barus and Holley engineering building at Brown University in Providence, RI, Thursday, Dec. 18, 2025. (AP Photo/ Mark Stockwell)

A woman lights a candle at a memorial set up in front of the Barus and Holley engineering building at Brown University in Providence, RI, Thursday, Dec. 18, 2025. (AP Photo/ Mark Stockwell)

A Brown University student walks past a church on the Providence, RI, campus, Thursday, Dec. 18, 2025. (AP Photo/ Mark Stockwell)

A Brown University student walks past a church on the Providence, RI, campus, Thursday, Dec. 18, 2025. (AP Photo/ Mark Stockwell)

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