Pentagon to use $130 million anonymous donation to help pay troops

The Pentagon said Friday that it accepted a $130 million anonymous donation to pay active-duty troops during the government shutdown, a move that experts say raises legal questions about private money funding military salaries.

“The donation was made on the condition that it be used to offset the cost of Service members’ salaries and benefits,” Pentagon spokesman Sean Parnell said in a statement, adding that the funds were acceptable under the department’s “general gift acceptance authority.”

The private $130 million contribution will have minimal impact on the Defense Department payroll and only cover a small amount of the funds needed to pay the troops. The Pentagon spends roughly $7.5 billion every two weeks to pay uniformed soldiers and reservists, according to federal data. That means the amount being donated would cover less than a day’s worth of salaries.

The 2025 budget request to cover the pay, benefits and retirement for the U.S. military was more than $171 billion, according to the Congressional Budget Office.

Speaking at a White House event on Thursday, Trump praised the donor as a patriot and a “friend of mine” but did not name him. The White House also declined to comment on the donation’s purpose and potential plans to repay the donor, referring questions to the Departments of Defense and Treasury.

The Pentagon’s acceptance of the donation has raised questions among fiscal policy experts about its legality.

“In general, you may not spend money that has been donated because the Constitution and the Anti-Deficiency Act say that you can’t spend money unless you have an appropriation to make it happen,” said Bobby Kogan, senior director of federal budget policy at the Center for American Progress.

According to the Anti-Deficiency Act, federal agencies are prohibited from “obligating or expending federal funds in advance or in excess of an appropriation, and from accepting voluntary services.”

Kogan added there are limited instances where Congress has granted the ability to use incoming money – such as gifts or donations to parks, museums, or schools – but that the donation is a violation of the statute.

The Pentagon said Saturday that it would repurpose at least $8 billion in unused research and development funding from the previous fiscal year, which Congress had authorized for two years, as a temporary fix to pay service members on Oct. 15.