President Trump Announces Unprecedented Tax-Free Bonus for Military PersonnelPresident Donald Trump has unveiled a unique warrior dividend for 1.45 million U.S. troops, amounting to $1,776 per service member, entirely tax-free. This move, hinted at in the One Big Beautiful Bill signed last summer, allows for up to $2.9 billion to supplement housing allowances, bypassing usual rank, location, and dependent restrictions. The bonus applies to all military members except generals and admirals, including those living in free on-base housing, who would typically be subject to income taxes. The Presidents previous actions, such as shifting funds during a government shutdown, demonstrate his commitment to troop pay. The move addresses concerns about the high cost of military housing, with many service members paying hundreds of dollars more than their allowance each month due to scarce and expensive off-base rentals.

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