The Taiwanese Legislative Yuan passed a special defense budget totaling 780 billion NTD ($25 billion USD) to counter rising PRC aggression.
The funding is split into two rounds, with 300 billion NTD allocated for immediate purchases of HIMARS, M109A7 howitzers, and Javelin missiles.
The second round of 480 billion NTD focuses on anti-ballistic missile systems and a nationwide counter-drone defense network.
Critics note the budget lacks funding for domestic weapons development and the highly anticipated ‘T-Dome’ missile defense network.
The move comes as China signals a shift in strategy, with Xi Jinping expected to pressure the U.S. to cease arms sales during the May 14 summit.
The PRC Foreign Ministry has warned that the “Taiwan issue” remains the single biggest risk factor for a U.S.-China conflict in 2026.
U.S. approved $11 billion arms package for Taiwan, with a second $14 billion package currently under review. [December 2025]