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IRS confirms Trump-ordered $1,776 ‘Warrior Dividend’ for 1.45M troops is tax-free

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IRS confirms Trump-ordered ,776 ‘Warrior Dividend’ for 1.45M troops is tax-free

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The Internal Revenue Service (IRS) delivered good news for America’s troops Friday, confirming that the one-time $1,776 “Warrior Dividend” paid to service members in December 2025 is completely tax-free, allowing troops to keep every dollar of the bonus.

In a Friday release, the Treasury Department and the IRS said that “supplemental basic allowance for housing payments” made to members of the uniformed services in December 2025 “are not to be included in income by those who received the payments; they are not taxable.”

The agency said federal tax law specifically excludes from gross income a “qualified military benefit,” adding that basic allowances for housing payments fall under that category and therefore are not subject to federal income taxes.

The confirmation caps off President Donald Trump’s pre-Christmas announcement that nearly 1.5 million U.S. service members would receive a special “Warrior Dividend” in recognition of their service and to commemorate roughly 250 years since the nation’s founding.

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CONGRESS UNVEILS $900B DEFENSE BILL TARGETING CHINA WITH TECH BANS, INVESTMENT CRACKDOWN, US TROOP PAY RAISE

President Donald Trump and Secretary of War Pete Hegseth listen during a Cabinet Meeting in the White House in Washington, D.C. (Andrew Caballero-Reynolds/AFP via Getty Images)

“And the checks are already on the way,” Trump said during a Dec. 17, 2025, primetime address from the White House, crediting tariffs and recently passed GOP spending and tax legislation for funding the payments. 

“Nobody deserves it more than our military. And I say congratulations to everybody,” he added.

According to the IRS, Congress appropriated $2.9 billion in legislation enacted last July to supplement the basic allowance for housing payable to members of the uniformed services, with the one-time $1,776 payments funded by that appropriation.

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The IRS said the supplemental payments were made primarily to active-duty service members in pay grades O-6 and below, along with eligible Reserve Component members as of Nov. 30, 2025, across the Army, Air Force, Navy, Marine Corps and Space Force.

TRUMP SIGNS ‘MEDAL OF HONOR ACT’ TO RAISE PENSIONS FOR AMERICA’S MILITARY HEROES

President Trump celebrates “reawakening the warrior spirit” within the military during remarks, Sept. 30, at Marine Corps Base Quantico. (Jim Watson/Getty Images)

Pentagon press secretary Kingsley Wilson welcomed the tax treatment in remarks carried by Pentagon News, saying the ruling ensures the money reaches military families directly.

“The tax-free Warrior Dividend places $1,776 directly in the hands of our warfighters and their families,” Wilson said. “The department is proud to recognize their sacrifice.”

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During his December address, Trump also pointed to what he described as a turnaround for the armed forces under his leadership, citing record enlistment and contrasting it with what he called historically poor recruitment numbers under the previous administration.

Secretary of War Pete Hegseth said the IRS news points to ‘what we’re doing to rebuild our military.’ (Alex Wong/Getty Images)

“What a difference a year makes,” Trump said.

Secretary of War Pete Hegseth said the dividend reflects a broader push to improve quality of life for military families.

“This Warrior Dividend serves as yet another example of how the War Department is working to improve the quality of life for our military personnel and their families,” Hegseth said. “All elements of what we’re doing are to rebuild our military. 

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The Department of War and the Internal Revenue Service did not immediately respond to Fox News Digital’s request for additional comment. 

Fox News Digital’s Alec Schemmel contributed to this reporting.

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Video: Trump Administration Shows Off $250 Bill Featuring Trump

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Video: Trump Administration Shows Off 0 Bill Featuring Trump

new video loaded: Trump Administration Shows Off $250 Bill Featuring Trump

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Trump Administration Shows Off $250 Bill Featuring Trump

During a press conference at the White House on Thursday, Treasury Secretary Scott Bessent displayed a mocked-up $250 bill bearing President Trump’s likeness.

At present, no living person can be on U.S. currency and the currency must say, “In God we trust.” So right now, there is proposed legislation that — in front of the House, in front of the Senate — to change the first requirement so that a living person, Donald J. Trump, could be on the $250 bill. I don’t think that there’s anything untoward about having the president of the United States, the person who was president of United States, on the 250th anniversary bill. Thank you all.

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During a press conference at the White House on Thursday, Treasury Secretary Scott Bessent displayed a mocked-up $250 bill bearing President Trump’s likeness.

By Jamie Leventhal

May 28, 2026

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WATCH: Black Hawk assists takedown of massive cocaine haul off coast of Puerto Rico

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WATCH: Black Hawk assists takedown of massive cocaine haul off coast of Puerto Rico

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FIRST ON FOX: The U.S. Air and Marine Operations (AMO) deployed a Black Hawk helicopter to intercept a boat suspected of smuggling drugs off the coast of Puerto Rico earlier this month.

On May 14, AMO detected a 25-foot blue vessel carrying three people and visible packages. After surveilling its activity, the San Juan Marine Unit deployed a pair of law-enforcement boats, flanked by the Black Hawk, according to U.S. Customs and Border Protection (CBP).

The agency seized three Dominican Republic nationals along with five bales containing 391 pounds of cocaine.

The helicopter-assisted takedown is just the most recent display of American military might that has been targeting narcotrafficking operations south of the U.S. border.

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BORDER CRISIS SHIFTS TO CARIBBEAN: HOMELAND SECURITY FIGHTS SILENT WAR IN PUERTO RICO

U.S. agents approach a boat suspected of carrying narcotics off the coast of Puerto Rico (Customs and Border Protection)

“Our Air and Marine Operations teams demonstrated exceptional skill and coordination in this interdiction. The decisive use of air disabling fire by our Black Hawk crew was instrumental in stopping the vessel and preventing dangerous narcotics from reaching our communities,” Caribbean Air and Marine Branch Director Christopher Hunter said.

“This operation highlights our commitment to working with partners across all levels to disrupt smuggling networks and protect the security of the United States and its territories,” he added.

Early on in his second administration, President Donald Trump made it clear he would use all available designations to label drug smuggling as a threat to the homeland.

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On Jan. 20, 2025, Trump declared a state of emergency brought on by the influx of narcotics.

“They present an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. I hereby declare a national emergency to deal with those threats,” the White House said in its executive order.

SPEC OPS CHIEF ORDERED DEADLY CARIBBEAN STRIKE ‘IN SELF-DEFENSE’ WITH HEGSETH’S SIGN-OFF, WHITE HOUSE SAYS

President Donald Trump participates in a roundtable discussion on public safety at a Tennessee Air National Guard Base in Memphis, Tenn., on Monday, March 23, 2026, with Gov. Bill Lee, Defense Secretary Pete Hegseth, former Attorney General Pam Bondi, and Gady Serralta, director of the U.S. Marshals Service. (Mark Schiefelbein/AP)

In turn, the Department of War caught the attention of the country when it began carrying out strikes on boats off the coast of Venezuela, in a manner it said was consistent with the administration’s posture.

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After nearly 20 strikes in waters around the Caribbean, Secretary of War Pete Hegseth said the efforts had successfully choked off some trafficking operations.

“WINNING: Some top cartel drug-traffickers in the U.S. Southern Command have decided to cease all narcotics operations INDEFINITELY due to recent (highly effective) kinetic strikes in the Caribbean,” Hegseth said in a post to social media.

In the Black Hawk confrontation, U.S. agents opted to approach the vessel instead of striking it from afar.

Infrared video footage shared with Fox News Digital showed the three men on the boat desperately throwing the contents of the boat overboard as the Black Hawk and other U.S. boats encircled the craft.

TRUMP’S WAR ON CARTELS ENTERS NEW PHASE AS EXPERTS PREDICT WHAT’S NEXT

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A pair of U.S. vessels approach a boat suspected of carrying narcotics off the coast of Puerto Rico. (Customs and Border Protection)

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The three suspects put their hands above their heads as agents approached their vessel and were pulled onto U.S. boats. A search of the boat revealed empty plastic containers and other unidentified packages.

The contraband thrown into the water was recovered, according to CBP.

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Your last-minute voter guide to California’s 2026 primary election

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Your last-minute voter guide to California’s 2026 primary election

With just days left to cast your vote in California’s primary election on June 2, The Times has answers to your last-minute questions about the voting process.

Here’s what you need to know:

What are the key races to watch?

  1. The California governor’s race is a tight battle between Democrats and Republicans who are vying to replace Democratic Gov. Gavin Newsom, who is serving his second term and cannot run again. Top candidates include a Riverside County sheriff, a former senior advisor to British Prime Minister David Cameron, a former Los Angeles mayor, a billionaire hedge fund founder and a member of the U.S. House of Representatives. Your guide to the race for California governor can be found here.
  2. In the Los Angeles mayoral race, incumbent Karen Bass faces a reelection challenge from a field of candidates including a reality TV personality, a tech entrepreneur, a City Council member and a progressive community leader. Your guide to the L.A. mayor’s race can be found here.

What is on the ballot?

There are several races, ballot measures, local district seats and statewide races that Southern Californians must decide on.

Most of the attention will be on the races for California governor and the mayor of Los Angeles.

City of Los Angeles residents have several other items to consider, including:

County of Los Angeles residents will be asked to vote on:

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Voters will decide on six local congressional district seats and other statewide races including the:

A comprehensive breakdown of each race or proposed tax measure can be found here.

What is an open primary?

An open primary allows the top two candidates who garner the most votes to move on to the general election in November, no matter what party they belong to.

This system could allow two candidates from the same party to advance to the general election.

Is it too late to vote by mail?

No. You can return your vote-by-mail ballot by:

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  1. Dropping it off in the return envelope at a secure official drop box now through the close of polls on June 2.
  2. Dropping it off in person at a polling place, vote center or county elections office by 8 p.m. on June 2.
  3. Dropping it off at the post office. Mailed ballots must be postmarked on or before election day and received no later than seven days after election day. To ensure your ballot is postmarked by election day, mail it at least five days before June 2. If mailing on election day, get a hand-stamped postmark from a postal employee at a United States post office.

What is the deadline to return a vote-by-mail ballot?

In order to be counted, vote-by-mail ballots must be postmarked on or before election day, June 2, and received by your county elections office by June 9.

How do I check if I’m registered to vote?

To find out if you’re registered to vote, visit the secretary of state’s website. You’ll need to enter a California driver’s license or identification number or the last four digits of your Social Security number.

You also can call the state’s voter hotline (available in 10 languages) at (800) 345-8683 to get a paper application mailed to you, or you can pick up one at a county election office, most California libraries and United States Post Office locations, as well as many federal, state and local government offices — including the Department of Motor Vehicles.

If you opted to register online, officials say you should wait at least 24 hours before checking your voter status.

How do I register to vote? Can I register on election day?

The deadline to register to vote was May 18.

If you’ve failed to meet the deadline, you can register as a conditional voter through the same-day voter registration process.

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Eligible citizens who need to register or reregister to vote within 14 days of an election can complete this process to register and vote at county elections offices, polling places or vote centers.

To find an early voting location, use the secretary of state search tool here. You can find your local polling places here.

Your submitted ballot will be processed and counted once the county elections office has completed the voter registration verification process.

How do I check my voter status?

You can check your voter status from the California secretary of state website here. To find your record, you’ll need to provide your full name, date of birth, state driver’s license or identification card number and the last four digits of your Social Security number.

Where is my closest drop box?

Secure ballot drop-off locations opened May 5. You can visit the Los Angeles County Office of the Registrar-Recorder/County Clerk’s website here to find a ballot box near you.

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How do I track my ballot?

Once cast your ballot, you can track it here.

Staff writers Seema Mehta, Phil Willon and David Zahnister contributed to this report.

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