Taiwan’s $40B Defence Budget: A Political Test After Lunar New Year

Intermediate | February 24, 2026

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Taiwan parliament defence spending review: A Big Budget Returns to the Top of the To‑Do List

After the week-long Lunar New Year break, Taiwan’s parliament (the Legislative Yuan) says it will make one issue a top priority: the Taiwan parliament defence spending review of President Lai Ching‑te’s proposed $40 billion special defence budget. The package is meant to speed up upgrades and help Taiwan respond to pressure from China, which claims the island as its own and has not ruled out using force. (Reuters)

Why the Review Stalled in the First Place

Here’s the business-casual reality: this is partly a political numbers game. Lai’s party doesn’t control parliament, and opposition parties—especially the Kuomintang (KMT)—have pushed back on the size and structure of the plan. Reuters reported that the KMT has floated alternatives that would spend less and fund only some of the U.S. weapons Lai wants to buy. That disagreement has slowed the review process. (Reuters)

U.S. Lawmakers Add Pressure

The delay hasn’t gone unnoticed in Washington. A bipartisan group of 37 U.S. lawmakers urged Taiwan’s political leaders to move quickly on the spending plan, warning that the security threat is serious and time matters. They also noted that the United States—while it does not have formal diplomatic ties with Taiwan—is still Taiwan’s most important supporter and main arms supplier. (Reuters)

Parliament Leaders Promise Cross‑Party Talks

In response, Parliament Speaker Han Kuo‑yu said the defence plan would be treated as a legislative priority when lawmakers return. Deputy Speaker Johnny Chiang said the parliament would start cross‑party talks to move the review forward. In other words: “We’re putting it on the agenda, and we’re going to negotiate.” (Reuters)

Lai’s Message: Stronger Defences, More Cooperation

Around the same time, Lai used a Lunar New Year message to say Taiwan would keep strengthening its defences. Reuters said the video was recorded at a high‑altitude radar station called Hsiaohsuehshan, and it also mentioned Taiwan’s first domestically built submarine, which was reported to be undergoing underwater trials. Lai has said he welcomes deeper defence cooperation with partners and still invites dialogue with China—though Beijing has rejected his overtures. (Reuters)

What This Means for Taiwan—and for Everyone Watching

If the $40B plan moves forward, it could speed up key purchases and projects, especially U.S.-made systems and other upgrades. If it stays stuck, Taiwan risks losing time—and in security planning, time is a resource you can’t easily buy back. For English learners, this story is also a great example of how budget negotiations work: even urgent plans can hit “approval traffic” when politics and money collide. In short, the Taiwan parliament defence spending review will help decide how fast Taiwan can turn plans into real capabilities.

Vocabulary

priority (noun) – the most important task or goal.
Example: “The defence budget became a priority after the holiday.”
review (noun/verb) – an official process of examining something carefully.
Example: “Lawmakers will review the special spending plan.”
proposal (noun) – a formal plan suggested for approval.
Example: “The president’s proposal is worth $40 billion.”
opposition (noun) – political groups that are not in power and often disagree.
Example: “The opposition questioned the size of the budget.”
alternative (noun) – another option or plan.
Example: “The KMT offered an alternative budget idea.”
bipartisan (adjective) – supported by two major political parties.
Example: “A bipartisan group of U.S. lawmakers sent a letter.”
urge (verb) – to strongly encourage.
Example: “They urged Taiwan to approve the spending quickly.”
supplier (noun) – a person or country that provides goods or services.
Example: “The U.S. is Taiwan’s main arms supplier.”
negotiate (verb) – to discuss and compromise to reach agreement.
Example: “Parties will negotiate during cross‑party talks.”
overture (noun) – an attempt to start a friendly relationship or discussion.
Example: “China rejected Lai’s overtures for dialogue.”

Discussion Questions (About the Article)

What is the main purpose of Taiwan’s $40 billion special defence budget?
Why has the review been delayed in parliament?
What role did the group of 37 U.S. lawmakers play in this story?
What did Speaker Han Kuo‑yu and Deputy Speaker Johnny Chiang say they would do next?
Which two defence-related details did Lai mention in his Lunar New Year message?

Discussion Questions (About the Topic)

Should defence budgets be handled differently from other budgets? Why or why not?
When politicians disagree on spending, what kinds of compromises are realistic?
How can a country balance security needs with financial oversight?
What are the pros and cons of relying on another country for weapons supplies?
How do you think public opinion affects defence spending decisions?

Related Idiom

“Time is of the essence” – time is extremely important, and delays can cause problems.

Example: “In defence planning, time is of the essence—delays can change the risk.”

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This article was inspired by: Reuters (as carried by Yahoo News).