Taiwan Defense Budget: Lai Pushes Spending Forward as Parliament Returns

Intermediate | February 28, 2026

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Taiwan Defense Budget Fight Gets Serious

Taiwan’s President Lai Ching-te is pressing lawmakers to move quickly on the Taiwan defense budget, including a major special defense budget that has been stuck in political gridlock. In plain English: the government wants to spend more to strengthen Taiwan’s security, but the legislature has been slow to approve the plan. (Taipei Times)

Who’s Blocking What—and Why?

Taiwan’s legislature is currently led by opposition parties, and that matters because budgets have to be reviewed and passed there. On Feb. 17, Legislative Speaker Han Kuo-yu and Deputy Speaker Johnny Chiang (both from the KMT) said the special defense budget would be a top priority when the legislature reconvenes after the holiday break. That’s a signal they want progress—but also that they want a careful review, not a rubber stamp. (Taipei Times)

The “Special” Budget: Big Money, Big Questions

So what’s in this special budget? Reporting says the proposal is about US$40 billion and is tied to strengthening Taiwan’s defense—especially as China increases military pressure around the island. The plan has faced delays, with opposition lawmakers pushing for a smaller or more targeted package. Taiwan’s government argues the funding gap could weaken deterrence at a dangerous moment. (Reuters)

Why the US Is Watching Closely

The United States is Taiwan’s most important security partner and arms supplier, so Washington is paying attention. Reuters reported that US lawmakers have publicly urged Taiwan’s parliament not to hold up the defense plan, warning delays could hurt Taiwan’s credibility and cooperation with partners. When allies are watching, budget decisions become more than “local politics”—they become a trust issue. (Reuters)

A Key Player: The Taiwan People’s Party

Taiwan’s smaller third party, the Taiwan People’s Party (TPP), could be a swing vote. TPP Chairman Huang Kuo-chang said his party would take a “rational approach” when reviewing US arms sales and Taiwan’s self-defense needs. Translation: they’re not promising a yes, but they’re not promising a no either. That makes the next legislative session important—and potentially decisive. (Taipei Times)

Lai’s Message: “National Security Can’t Wait”

Earlier in February, Lai held a press conference titled “National Security Cannot Wait!” urging support for the special defense procurement plan after it failed to move forward for committee review. His message was simple: defense planning has deadlines, and delays can create real risk—especially when the Taiwan defense budget is waiting on a vote. (Office of the President, Taiwan)

Vocabulary

gridlock (noun) — a situation where progress is blocked, often because of political disagreement.
Example: The defense budget is stuck in gridlock in the legislature.
reconvene (verb) — to meet again after a break.
Example: Lawmakers will reconvene after the holiday.
rubber stamp (noun) — automatic approval without real review.
Example: Opposition leaders said they won’t rubber stamp the proposal.
procurement (noun) — the process of buying equipment or supplies, especially for government or military.
Example: The special act focuses on defense procurement.
deterrence (noun) — preventing an action by making it risky or costly.
Example: Taiwan says stronger deterrence helps reduce conflict risk.
scrutiny (noun) — careful, detailed examination.
Example: The opposition wants more scrutiny of the spending plan.
targeted (adjective) — focused on specific goals.
Example: Some lawmakers prefer a smaller, targeted package.
credibility (noun) — trustworthiness; being believed.
Example: Delays could damage Taiwan’s credibility with partners.
swing vote (noun) — a deciding vote that can shift the final result.
Example: The TPP could become the swing vote on the budget.
bipartisan (adjective) — supported by two major parties.
Example: A bipartisan group of US lawmakers urged action on defense spending.

Discussion Questions (About the Article)

What is the main reason President Lai is pushing for faster budget approval?
What did Han Kuo-yu and Johnny Chiang say about the special defense budget?
What is the reported size of the special defense budget proposal?
Why does US opinion matter in this budget debate?
What role could the Taiwan People’s Party play in the final decision?

Discussion Questions (About the Topic)

Should defense budgets move faster than other government budgets? Why or why not?
How can lawmakers balance national security with responsible spending?
What are the risks of delaying defense decisions in a tense region?
How much should international partners influence a country’s internal decisions?
What’s the best way to build trust between political parties during a crisis?

Related Idiom

“Put your money where your mouth is.” — prove your commitment with real action, not just words.

Example: If Taiwan says security matters, passing the defense budget is one way to put its money where its mouth is.

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This article was inspired by: (Taipei Times), (Reuters), (Reuters), and (Office of the President, Taiwan).