Taiwan's opposition-led parliament approved an additional defence allocation of about US$25 billion, roughly two-thirds of the T$1.25 trillion supplementary package requested by President Lai. The opposition argued the original plan lacked transparency and posed corruption risks, while the ruling DPP warned the cutbacks could weaken Taiwan's defence and create security gaps. The U.S. has urged Taipei to approve a comprehensive defence budget and has already announced an US$11 billion arms sale, with reports of a possible additional US$14 billion package.
Taiwan Parliament Approves US$25 Billion Defence Boost, Short Of Government Request
A Taiwan-made attack drone is displayed during an annual military exercise ahead of the Lunar New Year, in Kaohsiung, Taiwan, January 29, 2026. REUTERS/Ann Wang
TAIPEI, May 8 — Taiwan's opposition-led legislature on Friday approved an additional defence allocation equivalent to about US$25 billion, roughly two-thirds of the supplementary package sought by the government to bolster the island's armed forces against a rapidly modernising Chinese military.
Parliament Vote and Figures
President Lai Ching-te had proposed a T$1.25 trillion (about US$39.8 billion) supplementary defence bill that would fund purchases of U.S. arms and investment in domestically produced systems—such as drones—to strengthen Taiwan's deterrence against Beijing, which claims the island as its territory.
Instead, the opposition—holding the largest number of seats in parliament—passed its own version, allocating T$780 billion (about US$24.9 billion). Opposition lawmakers argued the government's original proposals lacked sufficient detail and raised the risk of mismanagement or corruption.
Political Reactions
The ruling Democratic Progressive Party (DPP) expressed regret, saying opposition lawmakers ignored repeated briefings from the defence ministry. The DPP warned that the reduced package could limit Taiwan's defence capabilities and create security gaps.
"This is not merely a discount on the dollar amount — it is a discount on Taiwan's comprehensive defence system, and a discount on Taiwan's declaration to the world of its commitment to self-defence," DPP spokesperson Lee Kun-cheng said.
Cheng Li-wun, chairwoman of the Kuomintang (KMT), said the approved package is earmarked primarily for buying U.S. weaponry. She reiterated the KMT position that Taiwan's security rests on two pillars: a sufficiently strong defence capability and sustained efforts to pursue cross-strait peace. Cheng visited China last month and met President Xi Jinping.
U.S. Support And Arms Sales
The United States has urged Taiwan to expand its defence spending as Taipei rejects Beijing's sovereignty claims. Washington's top diplomat in Taiwan recently pressed lawmakers to approve a "comprehensive" defence budget, emphasizing integrated air and missile defence systems and drones as priorities.
In December, the U.S. announced an US$11 billion arms sale to Taiwan—its largest to date. Reuters has previously reported that a second package, valued at around US$14 billion, could be announced contingent on developments following U.S. President Donald Trump's trip to China.
At a Taipei forum organised by think tank CAPRI, Matt Pottinger, who served as deputy national security adviser in President Trump's first administration, underscored that credible deterrence requires the capacity to defend oneself. "As people in Taiwan politics are talking about negotiations with China, I don't have any problem with that. But you want to do that from a position of strength," he said.
Exchange Rate Note: ($1 = 31.3970 Taiwan dollars)
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