Taiwan Passes U.S. Arms Bill With Spending Ceiling of US$24.8 Billion

Taipei: Taiwan's Legislative Yuan has approved a supplementary budget bill facilitating the acquisition of U.S. military equipment, with a spending cap set at NT$780 billion (US$24.8 billion). The legislation, endorsed by the opposition Kuomintang (KMT) and Taiwan People's Party (TPP), covers the period from 2026 to 2033 and incorporates two primary funding provisions.

According to Focus Taiwan, the first provision allocates NT$300 billion for arms sales previously sanctioned by the United States on December 17, 2025. The second provision earmarks NT$480 billion for a future arms package anticipated from Washington. The approved amount falls short of the NT$1.25 trillion initially requested by the ruling Democratic Progressive Party (DPP) government. The bill passed with a 59-0 vote, alongside 48 abstentions, in the 113-seat legislature.

The disbursement of funds for both provisions hinges on a legislative review once Taiwan receives letters of offer and acceptance (LOAs) from the U.S. for specific weapon systems. The bill mandates that the funding will be distributed through annual drawdowns, with each year's budget and implementation schedule requiring approval from the Legislative Yuan.

The U.S.-approved weapons package includes High Mobility Artillery Rocket Systems (HIMARS), M109A7 self-propelled howitzers, TOW 2B missiles, Altius-700M and 600 drones, and Javelin anti-armor missiles.