Mellon Heir Identified as Donor Behind Trump-Touted $130 Million Military Payroll Gift - Finance 50+

Mellon Heir Identified as Donor Behind Trump-Touted $130 Million Military Payroll Gift

The anonymous benefactor highlighted last week by former President Donald Trump as a “patriot” willing to cover U.S. military pay during a possible federal shutdown has been identified as businessman Timothy Mellon, according to people familiar with the matter. Mellon, an heir to the storied banking dynasty founded by industrialist Andrew Mellon, pledged $130 million intended for service-member salaries, two sources told The New York Times.

The pledge surfaced on Thursday at the White House, where Trump announced that an unnamed supporter had offered a sizable sum to ensure active-duty troops would not miss paychecks if Congress failed to pass funding legislation. The former president did not disclose the donor’s identity, referring only to a “friend of mine.”

Details provided to the Times now link the gift to Mellon, 81, who has long been one of Trump’s most generous financial backers. In the 2024 election cycle, Federal Election Commission filings show Mellon transferred $50 million to a pro-Trump super PAC, one of the largest single contributions reported that year.

Scale of the pledge

While $130 million is substantial, the amount represents a fraction of total military compensation. The active-duty force numbers more than 1.3 million personnel. Based on that head count, Mellon’s donation equates to roughly $100 per service member. By comparison, the Biden administration’s fiscal-year 2025 budget request includes about $600 billion for salaries, benefits and related costs within the Defense Department, illustrating how limited private money would be in meeting overall payroll obligations.

Military pay is mandated by statutes overseen by Congress, and appropriations are traditionally provided through annual defense spending bills. Payments are processed twice monthly and flow automatically once funds are allocated by lawmakers. A lapse in appropriations—commonly called a government shutdown—would freeze those disbursements unless new legislation instructs otherwise.

Legal questions

Specialists quoted by the Times cautioned that accepting Mellon’s money could violate the Antideficiency Act, a 19th-century statute that bars federal agencies from spending money not authorized by Congress. The act was created to ensure the legislative branch retains exclusive authority over public expenditures and contains both civil and criminal penalties for violations. Because military pay is a federal obligation, outside funds cannot legally replace congressional appropriations without explicit legislative approval.

Spokespersons for the Defense Department have not commented publicly on whether they were approached about the gift or how it might be administered. The White House, which hosted Trump’s announcement in a private setting, likewise has not outlined a mechanism for directing Mellon’s pledge to service-member bank accounts.

Background on the donor

Mellon is best known for his family’s banking fortune and his grandfather’s tenure as Treasury secretary from 1921 to 1932. He has invested in transportation and aerospace ventures and has occasionally taken public positions on federal spending. Records show he has contributed tens of millions of dollars to conservative political committees since 2018.

Mellon Heir Identified as Donor Behind Trump-Touted $130 Million Military Payroll Gift - financial planning 58

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The timing of his latest pledge coincides with a renewed budget impasse on Capitol Hill. Funding authority for multiple federal agencies, including the Pentagon, is set to expire if new appropriation bills are not enacted. Congressional leaders in both parties have expressed optimism about averting a shutdown, but measures to bridge policy differences on domestic and defense priorities remain unresolved.

Reaction and precedent

No precedent exists for private citizens underwriting the Defense Department’s payroll. During previous shutdowns, including the 35-day closure in 2018-2019, Congress passed piecemeal legislation to keep military pay flowing. Legal scholars argue that relying on philanthropy could erode constitutional checks and balances that assign fiscal authority to lawmakers.

Advocates for service members said uncertainty surrounding pay can affect morale and family budgets. However, groups such as the Military Officers Association of America called on Congress rather than private donors to provide continuity in compensation, pointing to existing models used in earlier funding gaps.

Next steps

It remains unclear whether Mellon’s $130 million pledge has been formally offered to the Treasury or the Defense Department, or whether any agency could lawfully accept it without an act of Congress. Should a shutdown occur and appropriations lapse, Pentagon officials would be required to follow guidance from the Office of Management and Budget regarding essential activities and personnel. Under prior precedent, active-duty troops would continue to work but would not receive pay until new funding is approved.

Until lawmakers broker a budget agreement, the status of Mellon’s donation—and its potential impact—will likely depend on legal interpretations of the Antideficiency Act and on political negotiations to keep the government operating.

Crédito da imagem: AP Photo

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John Carter

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