TAIPEI (Taiwan News) — The US State Department on Saturday urged Taiwan’s political parties to move beyond partisan divisions and quickly pass the special defense budget as the deadline to finalize three arms deals approaches.
The KMT caucus unveiled its version of the special defense budget on Thursday, setting a cap of NT$380 billion (US$11.97 billion), per CNA. Hudson Institute senior fellow Jason Hsu (許毓仁) said Friday that based on his communications with officials in Washington, the US has not accepted the proposal, and there is no tacit understanding.
A US State Department spokesperson told CNA on Saturday that, under the Taiwan Relations Act and "45 years of commitment" by successive administrations, the US supports “Taiwan's acquisition of critical defense capabilities, commensurate with the threat it faces.” The spokesperson stressed that, “We encourage all parties in Taiwan's legislature to work through political differences and quickly pass a special defense budget that demonstrates Taiwan's commitment to its self-defense by funding the acquisition of critical defense capabilities.”
The Legislative Yuan on Friday sent three versions of the special defense budget to committee review. These include the Cabinet’s NT$1.25 trillion proposal, the KMT caucus version, and the TPP's NT$400 billion proposal.
Defense Minister Wellington Koo on Friday said the KMT’s purported “NT$380 billion plus N” concept is neither valid nor factual. He emphasized the bill caps funding at NT$380 billion, and any additional funding would require lawmakers to pass a separate law.
Koo also questioned why items such as spare parts for AH-1W helicopters and repairs for Harpoon missiles were included in the proposal, noting these had already been incorporated into the regular government budget rather than a special budget. This suggests those drafting the bill may not have attended relevant briefings or understood the arms procurement process, he said.
Koo stressed the Cabinet's NT$1.25 trillion proposal was developed after two years of internal research, taking into account threat assessments and operational requirements, and had received approval from the US government and Congress. The minister said missing any one component would create major gaps and significantly reduce joint operational effectiveness.
The US government has already provided Taiwan with draft letters of offer and acceptance for three arms sales included in the special budget aimed at strengthening defense resilience and asymmetric capabilities, with the offers valid until March 15. However, because the defense special act has not yet been passed, the Ministry of National Defense said in February it would seek an extension from the US to prevent the entire package from being canceled if the agreements cannot be signed before the deadline.
