After months of failed negotiations and persistent deadlock over the total budget figure, Taiwan's Legislative Yuan on May 8 passed the Special Act for Safeguarding National Security and Strengthening Asymmetric Combat Capability, authorizing a total procurement budget of NT$780 billion (US$ 24 billion). Backed by the opposition Kuomintang (KMT) and Taiwan People's Party (TPP), the legislation establishes a legal framework for the accelerated acquisition of critical weapons systems, with an implementation period running through 2033. The Ministry of National Defense (MND) is designated as the statute's competent authority.
What Exactly Is Taiwan Buying — and How Much Will It Cost?
The NT$780 billion authorization is divided into two discrete phases, each with its own spending ceiling, procurement scope, and budgetary conditions.
The first tranche, capped at NT$300 billion (US$ 9.2 billion), covers five defined weapons systems: M109A7 self-propelled howitzers, HIMARS multiple-launch rocket systems, anti-armor unmanned aerial vehicle missile systems, Javelin anti-tank missiles, and TOW 2B anti-tank missiles.
The second tranche carries a ceiling of NT$480 billion (US$ 14.8 billion) and focuses on soft- and hard-kill counter-drone systems, anti-ballistic missile and air defense platforms, and replenishment of anti-armor missile combat reserves. Budgeting for this tranche is conditional: funds may not be appropriated until the United States government has formally agreed to each sale.
Who Controls the Money — and What Stops It From Being Misused?
The statute's budget formulation is exempt from the restrictions of Article 23 of the Budget Act. However, the law imposes a strict limitation on fund management: appropriations may not be redirected between procurement items without the explicit consent of the Legislative Yuan.
Two additional fiscal guardrails apply for the duration of the statute. Total central government debt incurred during the implementation period may not exceed 15% of the combined total of the general and special budgets. Annual social welfare expenditures in the central government budget must not fall below the level set in the fiscal year 2026 central government budget — a provision designed to ensure that defense outlays do not come at the expense of social services.
Why Can't Taiwan Just Start Spending the $24 Billion Right Away?
The act introduces a structured, two-step oversight mechanism before any funds may be spent.
Within one month of the statute's passage, the Executive Yuan must submit a special report to the Legislative Yuan. That report must address procurement records from the preceding five years, projected delivery schedules for new acquisitions, and full lifecycle maintenance costs.
Only after the Legislative Yuan approves the special report may the Executive Yuan proceed. It then has two months to submit the formal first-tranche budget proposal for legislative deliberation. The same report-then-budget sequence governs the second tranche.
The statute takes effect on the date of its promulgation and remains in force through December 31, 2033. Extensions are subject to legislative approval.
How Did a Bill Become Law Without the Governing Party's Support?
The statute's passage followed four rounds of cross-party consultations convened by Legislative Yuan Speaker Han Kuo-yu (韓國瑜), none of which produced consensus between the opposition coalition and the ruling Democratic Progressive Party (DPP). Having exceeded the mandatory one-month negotiation period without agreement, the bill became eligible for a direct floor vote under Taiwan's legislative rules — a procedural threshold the KMT and TPP used to bring the statute to passage without DPP support.
Did All Three Parties Actually Agree on This?
Democratic Progressive Party (DPP)
The DPP expressed disappointment at the outcome. The opposition's authorized ceiling of NT$780 billion falls NT$470 billion short of the DPP's own proposed figure of NT$1.25 trillion (US$ 38.5 billion). Party spokesman Lee Kuen-cheng (李坤城) said the DPP regrets that the opposition parties consistently disregarded repeated explanations from the Ministry of National Defense and relevant government agencies, and dismissed warnings from the United States and the international community. Li argued the scaled-back authorization risks constraining Taiwan's defense capacity and could create vulnerabilities in the country's future national security posture.
Kuomintang (KMT)
KMT caucus whip Fu Kun-chi (傅崐萁) said the party stands fully behind the joint Taiwan-U.S. military procurement program, and pledged that the legislation would ensure public funds are spent where they matter most while closing off opportunities for corruption. KMT Chair Cheng Li-wun (鄭麗文) argued that passing the special statute represents the most responsible signal Taiwan can send to its international partners, and said that only the KMT and TPP — not the DPP — can be counted on to stabilize the Taiwan-U.S. relationship through accountable governance.
Taiwan People's Party (TPP)
TPP Chair Huang Kuo-chang (黃國昌) said the party has consistently supported strengthening Taiwan's defense capabilities, but will not tolerate corruption or waste. He emphasized that weapons paid for by Taiwanese taxpayers must actually be delivered. Following the statute's passage, Huang said the TPP will fulfill its oversight role rigorously during the budget review process, ensuring accountability at every stage of procurement. （Related： Taiwan's Nuclear Fuel Rod Dispute Masks a Trillion-Dollar Energy Policy Failure ｜ Latest ）
