President Donald Trump used a rare prime-time address to the nation Wednesday night to announce a one-time $1,776 bonus for US military personnel and mount a defence of his administration's handling of the economy, while Democratic leaders said his speech glossed over persistent cost-of-living pressures faced by Americans.
Speaking from the White House in an address broadcast live across major television networks, Trump said the payment described by his administration as a "Warrior Dividend" would be made to about 1.45 million active-duty and qualifying reserve service members before Christmas. He said the funds would come partly from tariff revenue and said the amount was symbolic of 1776, the year the United States was founded.
The speech, which lasted just under 20 minutes, came nearly a year into Trump's second term and as preparations begin for the 2026 midterm elections. With voter confidence in the economy remaining mixed, Trump argued that inflation was easing and claimed his policies had improved government finances and strengthened US competitiveness.
Trump blamed the previous Biden administration for inflation, high housing costs and border security challenges, saying his government had inherited economic and administrative problems. He reiterated his focus on stricter immigration enforcement, tax relief and reducing federal spending, and said his administration would pursue further measures to lower energy, healthcare and prescription drug costs, though he offered few new details.
Democratic leaders were quick to criticise Trump's address, arguing that his claims about the economy and cost-of-living relief did not match the experiences of everyday Americans. Senate Majority Leader Chuck Schumer said in a written statement on the Senate Democratic Caucus website that the speech showed Trump was "completely disconnected from the reality everyday Americans are seeing and feeling." Schumer also posted on X, noting that Trump "can say whatever he wants on camera," but families are still being squeezed by high costs and economic uncertainty.
Trump’s speech is a sad attempt at distraction.
— Mark Warner (@MarkWarner) December 18, 2025
Americans know the truth: costs are up, unemployment is up, and he STILL won’t release the Epstein Files.
Other Democrats echoed these criticisms. Senator Mark Warner (D‑Va.) called the address "a sad attempt at distraction" in a post on X, saying it failed to address rising costs and unemployment. California Governor Gavin Newsom also took to X, commenting that Trump's speech "could have been an email," criticising it as self-referential and lacking substantive policy detail.
This could have been an email.
— Governor Gavin Newsom (@CAgovernor) December 18, 2025
Definitely the sign of an A+++++ economy. pic.twitter.com/V65Mmw9slc
— Governor Gavin Newsom (@CAgovernor) December 18, 2025
Meanwhile, DNC Chair Ken Martin issued a formal statement on the Democratic National Committee website, saying Trump's address showed he had "taken a wrecking ball to the economy," harming families and small businesses while defending tax cuts for the wealthy.
The address also marked one of Trump's few national prime-time appearances this year and included a brief mention of upcoming plans to propose tax and healthcare measures early next year, though no specific legislation was announced.
