Trump has announced a one-off “warrior dividend” payment for American service members, as he sought to defend his economic record nearly a year into his second term. In a televised national address on Wednesday, Trump said cheques worth $1,776 (£1,329) were already being sent to around 1.45 million members of the US armed forces and would arrive before Christmas.
The payments, which total $2.57bn, were framed by Trump as a patriotic gesture. He said the figure was chosen “in honour of our nation’s founding in 1776” and argued that no group deserved the money more than the military. According to the president, the funds were drawn partly from revenue generated by his tariff policies and from the sweeping domestic legislation he signed into law on 4 July.
A Combative Defence of His Record
Beyond the announcement, the 18-minute speech was largely devoted to Trump’s defence of his performance on the economy, immigration and governance. Speaking forcefully, he insisted the country was on the right track and claimed prices were “coming down fast”. He repeatedly blamed Democrats and former president Joe Biden for economic pressures, mentioning his predecessor several times during the address.
Democrats Push Back Strongly
Democrats reacted sharply to the speech. Senate Minority Leader Chuck Schumer accused Trump of being disconnected from the realities facing ordinary Americans. He argued that households were being squeezed by rising costs and said the president had chosen to “take a victory lap” despite widespread public anxiety about living expenses, including housing, childcare and healthcare.
While some prices, such as fuel and eggs, have fallen, broader economic data paints a more complex picture. Inflation reached 3% in September for the first time since January, and consumer confidence dropped to its lowest level since April. Polling suggests cost-of-living concerns remain a major political vulnerability for Trump, including among a significant share of his own 2024 voters.
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Recent surveys show declining approval ratings for the president on economic issues, with some polls placing his overall popularity near the lowest point of his second term. Trump has acknowledged that economic anxiety has hurt Republicans in recent elections and that incumbent parties often struggle ahead of mid-term contests, scheduled for next year.
Looking Toward America’s 250th Anniversary
Trump closed by looking ahead to the United States’ 250th anniversary celebrations next year, promising renewed national pride and global respect. While the “warrior dividend” may resonate with military families, critics argue the speech offered few concrete solutions to the everyday financial pressures facing many Americans.
