Trump Announces $1,776 Christmas Bonus For U.S. Troops Amid Rising Inflation

President Donald Trump announced on Wednesday night that 1.45 million U.S. military personnel will receive a $1,776 Christmas bonus, in remarks aimed at highlighting the strength of the economy while millions of Americans worry about rising living costs. According to AP, Trump said the payments, which he described as a “warrior dividend,” are being funded by tariffs.

“The checks are already on the way,” he said during a White House speech in the Diplomatic Reception Room, flanked by two Christmas trees and a portrait of George Washington.

Yet the announcement comes as many Americans face higher prices for groceries, housing, utilities, and holiday gifts, with inflation remaining elevated and the labour market weakening in recent months. Reported AP, the consumer price index has climbed at an annual rate of 3%, up from 2.3% in April.

Trump has sought to shift blame for inflation onto his predecessor, Joe Biden. “Eleven months ago, I inherited a mess, and I'm fixing it,” he said.

According to AP, the remarks appear to be part of a broader effort to shore up Trump’s popularity, which has been declining amid concerns over his handling of the economy. Republican losses in this year’s elections and upcoming 2026 midterms have raised questions about the durability of his coalition.

During the speech, Trump used charts to illustrate what he described as an upward trajectory for the economy. The stock market has risen, gasoline prices have fallen, and tech companies are making large investments in artificial intelligence.

However, AP reported, the broader economic indicators show a more nuanced picture. Inflation, which had eased after hitting a four-decade high in 2022 under Mr. Biden, has surged following tariffs introduced by Trump in April. Meanwhile, job growth has slowed dramatically, with monthly gains averaging only 17,000 since April’s “Liberation Day,” when import taxes were first announced, later suspended, and then readjusted. The unemployment rate has risen from 4% in January to 4.6%.

The White House speech marks a clear attempt to reassure the public and strengthen Trump’s standing as he approaches the midterm elections, with the administration emphasising support for the armed forces even as many Americans continue to face an affordability squeeze.

(With inputs from AP)