Taiwan Legislature Passes NT$780 Billion Supplementary Defense Budget After Cutting Domestic Missile Programs

Taiwan’s 113-seat legislature passed a NT$780 billion ($25 billion) supplementary defense budget on Friday in a 59-0 vote, with 48 lawmakers from the Democratic Progressive Party abstaining. 25 trillion originally proposed by the Lai administration. Funding is limited to two separate US arms packages for Taiwan.

The packages include $11 billion USD in arms sales cleared by the US State Department in December 2025 for M109A7 tracked howitzers, ATACMS ballistic missiles, BGM-71 TOW missiles, and Javelin anti-tank guided missiles. NT$480 billion of the approved supplementary budget is allocated to a future US arms package expected to include counter-drone systems, Patriot air-and-missile defense interceptors, and Hellfire missiles.

The supplementary budget strips proposed funding for Taiwan’s domestic defense industry programs including the Chiang Kung (Strong Bow) anti-ballistic missile program. The Chiang Kung (Strong Bow) anti-ballistic missile is intended to form the backbone of Taiwan’s new T-Dome air defense system. The opposition Kuomintang (KMT) and Taiwan People’s Party control Taiwan’s legislature.

Taiwanese President Lai Cheng-te leads the Democratic Progressive Party (DPP). The opposition says the defunding of domestic programs is due to a lack of clarity from the Lai administration about how the money will be spent. The opposition says the defunding was a measure to guard against corruption.

The DPP accused its opponents of hamstringing Taiwan’s defense and helping China. US de facto ambassador to Taiwan Raymond Greene said in April 2026 that it was vital that the supplementary budget was approved. Taiwan’s government originally proposed the supplementary budget in November 2025.

The impasse had drawn concern from US officials, including Raymond Greene’s statement months earlier. Breaking Defense reported that the passage of the bill had been mired in wrangling until Friday’s vote.