TAIPEI (Taiwan News) — Legislative Speaker Han Kuo-yu (韓國瑜) will convene a party caucus meeting on Wednesday to negotiate the 2026 budget and the special defense budget.

Han informed party caucuses on Tuesday that the negotiation would take place at 3 p.m., per Newtalk. The special defense budget on the agenda will be the version proposed by the DPP.

A previous caucus meeting on the special defense budget, chaired by DPP lawmaker Chen Kuan-ting (陳冠廷), failed after a boycott by the KMT. DPP Legislator Fan Yun (范雲) suggested that the KMT skipped the meeting to boost the profile of KMT Chair Cheng Li-wen (鄭麗文), who had not returned from China, per SETN.

Regarding the upcoming talks, DPP Legislator Chen Pei-yu (陳培瑜) expressed cautious optimism, per Liberty Times. DPP Legislative Caucus Secretary-General Chuang Jui-hsiung (莊瑞雄) urged Han to actively facilitate dialogue between the DPP and opposition parties.

Chuang also highlighted that the legislative deadlock has delayed critical government policies. The DPP pointed out that as the monsoon and typhoon season approaches, essential flood prevention projects cannot begin without approval of the 2026 budget, per NOWNews.

Additionally, the DPP said the delay has affected the Sports Ministry, which has several new initiatives included in the 2026 budget. Unlike ongoing programs, new projects cannot proceed until the budget is approved.

In the interim, the opposition has authorized the government to use funds allocated to 38 existing programs, including flood prevention and transportation subsidies. However, the Cabinet has declined to use these funds, citing potential legal issues if changes are made to the programs during the budget review process.

In response, the opposition accused the government of refusing to use appropriated funds.