Taiwan's Legislative Yuan will prioritise review of a $40 billion special defence budget when it reconvenes after the Lunar New Year holiday, parliament leaders said. President Lai Ching-te proposed the extra spending to strengthen deterrence against China, but the opposition majority has advanced smaller, cost-cutting alternatives. After a letter from 37 bipartisan U.S. lawmakers expressing concern, opposition leaders Han Kuo-yu and Johnny Chiang pledged to broker cross-party talks and treat the package as a top legislative priority.
Taiwan to Fast-Track $40 Billion Defence Budget Review After Lunar New Year Amid U.S. Concern
FILE PHOTO: 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
TAIPEI — Taiwan's legislature will prioritise review of a $40 billion special defence appropriation when lawmakers return from the week-long Lunar New Year holiday, parliament's speaker said on Monday, addressing concerns from U.S. legislators about potential delays.
President Lai Ching-te proposed the additional defence spending last year to strengthen Taiwan's deterrence against China, which views the island as part of its territory. The main opposition Kuomintang, which holds a parliamentary majority, has declined to approve Lai's full package and has instead advanced smaller, less costly proposals that would fund only some purchases of U.S. weapons requested by the administration.
Last week, a bipartisan group of 37 U.S. lawmakers sent a letter to senior Taiwanese officials expressing worry that parliament was stalling the defence package. In response, parliamentary speaker Han Kuo-yu and his deputy Johnny Chiang — both Kuomintang members — said they would facilitate cross-party negotiations to resolve the impasse.
"The special defence appropriation and related bills will be treated as a top legislative priority" once the new session begins, Han and Chiang said in a joint statement. "We value the open, candid and sincere exchanges between the Legislative Yuan and the U.S. Congress and take your views seriously."
The statement added: "Taiwan will continue to act with seriousness and resolve to make responsible contributions to its own security and to peace and stability in the Indo-Pacific." The government is scheduled to resume work next Monday, when the parliament session will reconvene after the holiday.
The United States remains Taiwan's most important international backer and arms supplier despite the absence of formal diplomatic ties. The Trump administration previously urged allies to increase defence spending — a stance that President Lai and his government have publicly welcomed.
Beijing has not renounced the use of force to bring Taiwan under its control. Lai has repeatedly offered talks with China but says only the people of Taiwan can decide their future; those offers have so far been rebuffed.
(Reporting by Ben Blanchard; Edited by Susan Fenton)
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