Overview
- Taiwan’s opposition-led legislature approved a NT$780 billion special defense fund Friday, passing it 59–0 with 48 abstentions after months of gridlock.
- The plan earmarks NT$300 billion for U.S. sales already cleared and sets aside NT$480 billion for future deals, with money released only after U.S. letters of offer that spell out price and terms and a follow-up legislative review.
- Domestic programs such as drone production and key pieces of the proposed T-Dome air and missile shield were cut, which the defense ministry said will leave gaps in air defense and asymmetric strike capacity.
- The U.S. State Department welcomed the vote and said further delays or missing capabilities would be a concession to the Chinese Communist Party.
- Parties offered sharply different takes, with the DPP warning the cuts could strain trust with Washington and slow Taiwan’s defense industry, and KMT leaders calling it a focused buy of U.S. arms with tighter oversight to guard against vague spending.