It's Not the Tariffs Paying Trump's Troops Bonus

The funding for that Christmas bonus President Trump promised troops in his speech Wednesday night isn't exactly as advertised. Trump indicated revenue from the tariffs he's imposed on goods coming into the US mostly would cover the $1,776 checks, which he called a "warrior dividend." But on Thursday, administration officials identified the source as a housing supplement that Congress already approved and was already going to the military. The $2.6 billion fund was part of the big tax and immigration law bill that Trump signed in July, the Washington Post reports. Trump alluded to that bill but suggested the money mostly is coming from tariffs.

"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," Trump said, per the AP. Another complication is the fact that the Supreme Court hasn't ruled yet whether Trump's invoking emergency powers to impose the tariffs was legal, per the New York Times, which estimates the cost of the bonuses at $2.5 billion. Also, the president can't spend tariff revenue without congressional approval. Defense Secretary Pete Hegseth ordered most of the housing money to be used for the tax-free bonuses, which are to go to about 1.45 million active-duty troops and 174,000 reservists. Hegseth described the bonuses as a quality-of-life initiative and said they will go to personnel from pay grades E-1 through O-6.

Republican Sen. Roger Wicker, who chairs the Armed Services Committee, said the bonuses would "put real money in the pockets of our service members and their families, helping provide greater stability and improved housing options as they manage the unique demands of military life." Democrats were more critical, per the Post. "There has been a real fundamental need for housing improvements and maintenance," Sen. Jack Reed said. "I think they could find a better source for the funds." Sen. Chris Coons questioned Trump's authority to issue the checks, citing the law and appropriations process. "That's how we do this," Coons said, "not game-show checks."