Hegseth Says Trump’s $1,776 ‘Warrior Dividend’ Will Be Tax-Free

President Donald Trump’s promise to send 1.45 million US troops a “warrior dividend” worth $1,776 will be tax-free, Defense Secretary Pete Hegseth said Thursday — an unusual maneuver that was previewed in the “One Big Beautiful Bill” when it became law last summer.

The legislation Trump signed July 4 provides for up to $2.9 billion “to supplement the basic allowance for housing” for service members. Those monthly allowances are usually tied to rank, locality and number of dependents — but Trump’s signature tax bill had no such constraints.

Instead, Hegseth said in a social media video that the payments ...