TAIPEI (Taiwan News) — A report issued by the US Congressional Research Service on Tuesday said differences between Taiwan’s executive and the opposition-controlled legislature over the defense budget have raised doubts about whether Taipei can adequately fund defense.
The report, titled “Taiwan: Defense and Military Issues,” said that some observers assess that the PLA currently, or in the near future, may have the ability to launch a range of military operations against Taiwan, per CNA. This includes missile strikes, seizing offshore islands, blockades, and an amphibious landing to occupy the main island.
The report highlighted that Taiwan has certain defensive advantages against potential Chinese aggression, including US political and military support and geographic factors. The Taiwan Strait is about 70 nautical miles (129 km) at its narrowest point, and harsh seasonal weather can make navigation dangerous.
Taiwan’s mountainous terrain and densely populated west coast are also unfavorable for amphibious landings and invasion operations. Taiwan has taken measures to strengthen military readiness and increase its defense budget, which grew on average by nearly 5% per year from 2019 to 2023.
In 2024, Taiwan’s defense spending was about 2.5% of GDP. Taiwan plans to raise defense spending to around NT$982.3 billion (US$31 billion) in 2026, or 3.3% of GDP.
In November, President Lai Ching-te (賴清德) proposed a special defense budget of NT$1.25 trillion (US$40 billion), to be disbursed over eight years, supplementing the general defense budget. The report noted that Taiwan faces many internal challenges in achieving its defense goals, and policymakers disagree on how to deter China effectively.
Although both major political parties in Taiwan support increasing defense investment, the ruling party and the opposition-controlled legislature still differ on several issues, including the special budget. This partisan deadlock “has raised questions about Taiwan's ability to adequately fund its own defense,” said the report.
In addition, Taiwan’s military continues to face difficulties in recruitment, training, and retention. Some observers consider civil defense preparations insufficient, while energy, food, water, communications, and other infrastructure remain exposed to outside disruption.
The report said that arms sales are the most concrete contribution the US provides to Taiwan’s defense, mostly through Foreign Military Sales. From 2015 to 2025, the White House notified Congress of over NT$1.23 trillion (US$39 billion) in FMS to Taiwan.
In 2022, the 117th Congress passed the Taiwan Enhanced Resilience Act, providing new channels for US military aid. For the first time, the law authorized the use of Presidential Drawdown Authority to directly supply Taiwan with defense materiel and services from US Department of Defense stockpiles.
Since the law’s enactment, the administration has announced three PDA aid packages totaling NT$47.48 billion (US$1.5 billion). The law also established Foreign Military Financing for Taiwan for the first time, allowing loans or grants for purchasing US weapons, with subsequent congressional appropriations going to FMF for the country.
The US 2025 fiscal year National Defense Authorization Act included the creation of the Taiwan Security Cooperation Initiative, authorizing aid to “enable Taiwan to maintain sufficient self-defense capabilities.” The 2026 fiscal year NDAA appropriates NT$31.66 billion (US$1 billion) for US-Taiwan security cooperation, which covers training in both countries.
The report pointed out that while much of the joint training is not publicly disclosed, it appears to be expanding.
