TAIPEI (TVBS News) — Taiwan's opposition parties ended a 162-day standoff over U.S. arms purchases on Friday (May 8), passing a defense bill that slashes the ruling party's request by 38 percent. The NT$780 billion (around US$24.8 billion) compromise exposed deep fractures within the Kuomintang even as it handed the party a legislative victory.
The opposition Kuomintang (KMT, 國民黨) and Taiwan People's Party (TPP, 台灣民眾黨), which together hold a majority in the Legislative Yuan, Taiwan's parliament, united to pass their joint version. The bill passed 59-0 with 48 abstentions in the 113-seat chamber. The Executive Yuan, Taiwan's cabinet, had originally proposed NT$1.25 trillion (around US$39.8 billion) over eight years for defense procurement.
What the Bill Covers — and What It Excludes
The bill, formally titled the "Special Act for Safeguarding National Security and Strengthening Asymmetric Warfare Capabilities Procurement" (保衛國家安全及強化不對稱戰力計畫採購特別條例), divides spending into two phases. The first batch has a ceiling of NT$300 billion (around US$9.6 billion). It covers five weapons systems for which the United States has already issued Letters of Offer and Acceptance (LOAs), the binding price quotes used in U.S. foreign military sales.
Those systems include M109A7 self-propelled howitzers, High Mobility Artillery Rocket Systems, anti-armor drone missile systems, Javelin anti-tank missiles and TOW 2B anti-tank missiles. A second batch is capped at NT$480 billion (around US$15.3 billion). It covers additional items the U.S. must formally approve within one year of the bill taking effect.
The second-batch items include soft-kill and hard-kill hybrid counter-drone systems, various anti-ballistic and air defense missiles, medium- and low-altitude air defense systems, and anti-armor missile stockpile replenishment. The bill excludes the "Taiwan Dome" (台灣之盾) integrated air defense program, "non-red" supply chain initiatives — efforts to exclude Chinese components from defense manufacturing — and domestic drone industry development. The ruling Democratic Progressive Party (DPP, 民進黨) had sought funding for those programs.
Despite the exclusions, KMT caucus whip Fu Kun-chi (傅崐萁) said the opposition's version "fully supports all U.S. arms sales to Taiwan" and "fully supports the LOAs issued by the U.S. government." He said the first batch totals US$11.1 billion, of which US$2.1 billion was already included in the annual defense budget.
DPP spokesperson Li Kun-cheng (李坤城) criticized the opposition for "ignoring the many explanations from the Ministry of National Defense" and "treating reminders from the U.S. and the international community as background noise." He said the delays had caused three LOAs to expire, forcing the U.S. to extend deadlines. Li warned that if Taiwan fails to make payment for the HIMARS system by the end of May, the entire purchase could be canceled, potentially harming Taiwan's ability to develop a "second silicon shield" in defense manufacturing.
The bill's passage came after four rounds of cross-party negotiations convened by Legislative Yuan President Han Kuo-yu (韓國瑜). Those talks failed to produce consensus on budget figures and procurement items. Han declared the negotiations deadlocked and scheduled the bill for a floor vote.
Passage Exposes Fractures Within the KMT
The passage also exposed divisions within the KMT. Former vice-presidential candidate Jaw Shaw-kong (趙少康) posted on Facebook saying he had tried to synthesize the views of several party figures. Those included former party chair Eric Chu (朱立倫), Taichung Mayor Lu Shiow-yen (盧秀燕), legislator Hsu Chiao-hsin (徐巧芯) and party chair Cheng Li-wun (鄭麗文). He said the party establishment had "mobilized various forces to attack from all sides." The final figure was close to the NT$800 billion (around US$25.5 billion) he had advocated.
"When did the KMT become such a one-party state? Such centralized control?" Jaw wrote. He warned Cheng that the "small dividend" from her recent meeting with Chinese leader Xi Jinping would "quickly be exhausted" if she did not respect party legislators. Cheng has not publicly responded to Jaw's criticism.
Under the bill, the Executive Yuan must submit a report to the legislature within one month. The report must detail military procurement over the past five years, including items, amounts, effectiveness and delivery status. Only after legislative approval can the cabinet begin preparing the first special budget, which must be submitted within two months.
The special act and its associated budgets will remain in effect until Dec. 31, 2033. If implementation is incomplete by that date, the legislature may approve an extension. The bill specifies that budget items cannot be transferred between categories without legislative consent. Currency fluctuations exceeding budget limits may be addressed through the regular annual budget.
The Ministry of National Defense (國防部) and the American Institute in Taiwan (AIT) did not immediately comment on the bill's passage. AIT is a non-profit, private corporation established shortly after the United States changed its diplomatic recognition from Taipei to Beijing on Jan. 1, 1979. Whether Taiwan can meet the late-May HIMARS payment deadline under the bill's procedural requirements remained unclear — as did whether the KMT's internal divisions would complicate future defense votes in a legislature it narrowly controls. ◼ (At time of reporting, US$1 equals approximately NT$31.40)
