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‘Warrior Dividend:’ Trump declares $1776 Christmas bonus to US troops

‘Warrior Dividend:’ Trump declares $1776 Christmas bonus to US troops

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Virendra Pandit

 

New Delhi: To halt his plummeting popularity at home and overseas, and claiming that the American economy is “strong,” President Donald Trump on Wednesday announced a USD 1,776 bonus for each of the US troops, the media reported.

Incidentally, the year 1776 was when the American Revolution uprooted British rule.

In an address to the nation, ahead of the 2026 mid-term elections to the US Congress, Trump said that he was sending a US 1,776 bonus check to each of the US soldiers for Christmas, indicating that tariffs were funding the payments as he tried to reassure a worried public about the actual health of the American economy.

He said 1.45 million military service members would get the “warrior dividend before Christmas.” “The checks are already on the way.”

Ironically, his bonus payments for the troops come as millions of Americans are fretting about the rising costs of groceries, housing, utilities and their holiday gifts as inflation remains elevated and the labour market has significantly weakened in recent months.

Flanked by two Christmas trees with a portrait of George Washington behind him in the White House’s Diplomatic Reception Room, Trump sought to pin any worries about high inflation on his predecessor, Joe Biden.

“Eleven months ago, I inherited a mess, and I’m fixing it,” Trump said.

His remarks came while he is trying to rebuild his steadily eroding popularity. Public polling shows most US adults are frustrated with his handling of the economy as inflation picked up after his tariffs raised prices and hiring slowed.

In 2026, Trump and his Republican Party face a referendum on their leadership as the nation heads into the mid-term elections that will decide control of the House of Representatives and the US Senate.

His fresh remarks were a chance for Trump to try to regain some momentum after Republican losses in this year’s elections raised questions about the durability of his coalition.

He even brought charts with him to claim that the economy is on an upward trajectory.

Inflation that had been descending after spiking to a four-decade high in 2022 under Biden has reaccelerated after Trump announced his tariffs in April and cheaper imports dwindled.

The Consumer Price Index (CPI) is now increasing at an annual rate of 3 percent, up from 2.3 percent in April 2025.

The affordability squeeze is also coming from a softening job market. Monthly job gains have averaged a paltry 17,000 since April’s “Liberation Day” in which Trump announced import taxes that he later suspended and then readjusted several months later.

The unemployment rate has climbed from 4 percent in January to 4.6 percent now.

 

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