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Taiwan Legislature Puts $40 Billion Defense Budget at Top of Agenda After Lunar New Year

The speaker pledged to broker cross-party talks after bipartisan U.S. warnings about delays.

Taiwan President Lai Ching-te holds a press conference on the special defence budget in Taipei, Taiwan, February 11, 2026. REUTERS/Yi-Chin Lee/File Photo

Overview

  • Legislative Speaker Han Kuo-yu and Deputy Johnny Chiang said the supplemental will be the first item when the new session opens after the holiday.
  • The opposition Kuomintang majority has stalled the executive’s proposal and, with the Taiwan People’s Party, advanced a smaller plan capped at NT$400 billion through 2033 with annual allocations.
  • President Lai Ching-te proposed an eight-year NT$1.25 trillion program, roughly NT$156 billion per year, to bolster resilience and asymmetric capabilities.
  • A bipartisan group of U.S. lawmakers urged swift approval in letters to Taiwanese leaders, citing rising threats and calling for spending consistent with Lai’s plan.
  • Government work resumes next Monday, positioning late February for the review to begin, as the United States remains Taiwan’s key arms supplier and China has not renounced the use of force.