Taiwan passes $25B defense bill for US arms purchases

Taiwan Parliament Approves $25 Billion Defense Budget for US Arms

Taiwan’s legislature on Friday passed a NT$780 billion ($24.8 billion) special defense spending bill to fund purchases of American weapons, ending months of partisan gridlock over the island’s military preparedness against China — but delivering far less than President Lai Ching-te’s government had sought.

A Compromise Under Pressure

The opposition Kuomintang (KMT) and Taiwan People’s Party (TPP), which together control the 113-seat Legislative Yuan, used their majority to push through the bill with 59 votes in favor and 48 abstentions among the 107 lawmakers present. No legislators voted against the measure.thepeninsulaqatar

The bill contains two main funding provisions: NT$300 billion for arms sales already approved by the United States on December 17, 2025, and NT$480 billion for a future arms package expected from Washington. Weapons covered under the first tranche include High Mobility Artillery Rocket Systems (HIMARS), M109A7 self-propelled howitzers, TOW 2B missiles, Javelin anti-armor missiles, and Altius drones. KMT caucus leader Fu Kun-chi said before the vote that his party was “willing to fully support” a second phase worth more than $15 billion that would include Patriot missiles, Hellfire missiles, and counter-drone defense systems.focustaiwan

The approved amount falls well short of the NT$1.25 trillion ($40 billion) package proposed by Lai’s Democratic Progressive Party (DPP) government in November 2025. That broader plan included funding for roughly 200,000 domestically produced reconnaissance and attack drones and the island’s homegrown “T-Dome” multi-layered air and missile defense system — both excluded from the opposition’s version.globaltaiwan

Caught Between Washington and Beijing

The vote came under mounting American pressure. In late April, the top U.S. diplomat in Taiwan publicly urged parliament to pass a “comprehensive” budget, warning that integrated air defense systems and drones are “in high demand globally” and that Taiwan risks losing its place in production queues.japantimes

The timing is also shaped by geopolitics. President Donald Trump is scheduled to travel to Beijing on May 14-15 for a summit with Chinese President Xi Jinping, who has warned Washington against sending more weapons to Taiwan. KMT chairperson Cheng Li-wun recently visited China and met with Xi, and has expressed hopes to travel to the United States in June.scmp

A Calculated Balance

Taiwan analyst Wen-Ti Sung said the KMT had shown just enough commitment to U.S.-Taiwan security cooperation to “silence doubters” of the party in Washington without provoking Beijing. The internal party debate had been fierce — senior KMT figures pushed for budgets as high as NT$810 billion while party leadership initially proposed just NT$380 billion.taipeitimes

Disbursement of the funds still requires a further legislative review after Taiwan formally receives letters of offer and acceptance from the U.S. government for specific weapons systems, giving the opposition continued leverage over the pace and scope of Taiwan’s rearmament.focustaiwan