US President Donald Trump has announced a warrior dividend payment to US service members, in a speech in which he also defended his track record on the economy after 11 months back in office.

In a televised address to the nation, Trump stated that cheques for $1,776 (£1,329) for 1.45 million US service members were already on their way and should arrive before Christmas. He indicated that these funds would be partially financed through his administration's tariffs.

The combative address included a strong defense of his accomplishments on immigration and a sharp critique of opposition Democrats, emphasizing his belief that the US economy was on the mend.

Trump claimed dropping prices, despite polling suggesting many Americans feel strained by rising housing, childcare, and healthcare costs. In response, Senate Minority Leader Chuck Schumer accused Trump of being disconnected from the realities faced by everyday Americans.

During the 18-minute speech, which emphasized the warrior dividend totaling $2.57bn (£1.9bn), Trump reiterated that these payments would honor the spirit of the nation’s founding in 1776.

The president allocated blame for economic woes to former US President Joe Biden and Democratic politicians, claiming that under his administration's leadership, prices were decreasing.

Despite a decrease in fuel and egg prices, many other food items remain more expensive, and economic data suggests that US inflation has recently hit 3% for the first time since January.

Public perception mirrors the economic challenges, with recent polls indicating that significant parts of the electorate view rising costs as unprecedented.

Trump acknowledged the electoral struggles faced by his party due to economic concerns but sought to focus on upcoming Republican legislative achievements that he believes will eventually benefit Americans. He set the tone for what he described as a positive future, particularly with the 250th birthday of the US approaching.

His insistence on America's restored international respect and confidence was intended to rally support as voter approval ratings aim for recovery.