President Donald Trump announced the “Warrior Dividend” at the end of last year. Payments of $1,776 will be sent to active duty and reserve members of the U.S. Armed Forces.
The payments, totaling $2.9 billion - are a “one-time basic allowance for housing supplement” for all service members in pay grades 0-6 and below.
That total includes 1.28 active-duty service members though the rank of colonel or the Navy captain equivalent.
Another 174,000 Reserve members are also eligible as long as they were on active-duty orders of 31 days or more as of Nov. 30, 2025.
Distribution of the checks began in late Dec. 2025 and the IRS recently confirmed the special payments won't be taxed.
“Federal tax law specifically excludes from gross income a “qualified military benefit.” The basic allowance for housing payments are qualified military benefits and, therefore, are not taxable,” the IRS said.
Reporting by Leada Gore
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