President Donald Trump’s $1,776 checks for 1.45 million troops announced Wednesday come from Congressionally-allocated reconciliation funds intended to subsidize housing allowances for service members, a senior administration official confirmed.

During a prime-time TV address, Trump said he was “proud to announce” that  “1,450,000 military service members will receive a special, we call ‘warrior dividend’ before Christmas” adding that to honor the nation’s founding “we are sending every soldier $1,776. Think of that. And the checks are already on the way.” 

The senior administration official told Defense One in an emailed statement late Wednesday evening that Defense Secretary Pete Hegseth directed the Pentagon to “disburse $2.6 billion as a one-time basic allowance for housing supplement” to all eligible service members ranks 0-6 and below.

“Congress appropriated $2.9 billion to the Department of War to supplement the Basic Allowance for Housing entitlement within The One Big Beautiful Bill,” the senior official said. “Approximately 1.28 million active component military members and 174,000 Reserve component military members will receive this supplement.”

Top Congressional leaders have repeatedly pushed Pentagon officials during confirmation hearings to commit to lawmaker guidance for the more than $150 billion in defense priorities identified in the “One, Big, Beautiful Bill” reconciliation legislation. The $2.9 billion meant to subsidize the basic allowance for housing, the monthly payment to cover off-base expenses such as rent, mortgage, and utilities known as BAH, comes as some service members have struggled to make the most of the benefit. A Jan. 27 Rand report examining the adequacy of BAH for Army personnel said the Defense Department should better assess methodology amid rapid changes to the housing market.

“BAH is generally adequate for Army personnel, though not necessarily when the housing market is changing rapidly and dramatically, as it has in recent years,” the report read. “Furthermore, while our analysis of housing choices and expenditures among military

personnel and of their locational amenities points to an overall positive picture with respect to BAH, a substantial, though minority, share of members report dissatisfaction with BAH.”

Active-duty, and reserve troops on active-duty orders 31 days or more in duration as of Nov. 30, 2025, are eligible for the benefit if they’re an 0-6 or below, the senior administration official said.

“President Trump’s administration recognizes the hard work of our service members with this one-time Warrior Dividend, which places funds directly in the hands of our military members and their families, helping to improve their housing and quality of life,” the senior administration official said.

Last week, the Defense Department announced the 2026 BAH rates, which are set to increase by an average of 4.2 percent as of Jan. 1, 2026.

During hearings, Senate Armed Services Chairman Sen. Roger Wicker, R-Miss., has said “much of the funding of the defense reconciliation bill is unspecific and will technically be at the discretion of [the Defense Department].” He has repeatedly asked nominees if they “commit to follow the Congress' spending recommendations and defense reconciliation, unequivocally.”

Others, like SASC Ranking Member Sen. Jack Reed, D-R.I., have reportedly expressed skepticism that the Pentagon will follow intended plans for the funds.

“My sense is they already have an idea of what they want to do, and they’ll try to do it,” Reed said. “Some of it will be consistent with what we’re doing, but some things, I think inevitably, will be their own initiatives, their own sense of what’s important, even if we don’t agree or don’t support it.”

Spokespeople for the Senate Armed Services Committee did not immediately return a request for comment.

Some lawmakers have been scrutinizing the Trump administration’s reallocation of military funding. Sen. Elizabeth Warren, D-Mass., and Rep. John Garamendi, D-Calif., issued a report last week highlighting $2 billion diverted away from the Defense Department and Homeland Security Department for border enforcement—including redirecting funds for barracks, maintenance hangers, and elementary schools.