TAIPEI (Taiwan News) — KMT Legislative Caucus Convener Fu Kun-chi (傅崐萁) announced Friday that the KMT and TPP will propose a NT$780 billion (US$24 billion) special defense budget.
The proposal includes weapons systems covered under existing US Letters of Offer and Acceptance (LOAs), including M109A7 self-propelled howitzers, HIMARS rocket systems, Javelin and TOW anti-tank guided missiles, and anti-tank drone systems, per UDN. It also includes additional systems the United States is expected to offer within one year after the special budget takes effect.
According to Fu, the proposal also covers anti-ballistic missile systems, low- and medium-altitude air defense systems, soft- and hard-kill counter-drone systems, and replenishment of anti-tank guided missiles. Fu said he hopes the DPP will support the proposal so it can pass during Friday’s legislative session.
The KMT has been divided over whether to support a NT$380 billion (US$12 billion) proposal that would allow future additions after receiving US LOAs, or switch to a larger NT$800 billion version that reportedly has broader support within the party’s legislative caucus. KMT Chair Cheng Li-wun (鄭麗文) met Taichung Mayor Lu Shiow-yen (盧秀燕) on Thursday to discuss the party’s proposals for the special defense budget, per UDN.
Lu said Thursday that US arms purchases could be included in the special defense budget, while other portions of the government’s proposed NT$1.25 trillion package should be folded into annual budget proposals, per CNA. She argued the approach would strengthen Taiwan’s defense capabilities while also supporting the domestic drone industry.
After meeting Legislative Speaker Han Kuo-yu (韓國瑜) in an effort to ease divisions within the party, Cheng later met with Lu, who, like Han, favors the larger package. Although Cheng did not publicly comment on the meeting, KMT Legislator Huang Chien-hao (黃健豪), a member of Lu’s faction, said Lu focused on possible procedural issues with tying arms procurement budgets to LOAs.
Lu reportedly argued that US arms sales already involve LOAs and that waiting for them before allocating funds could create unnecessary delays. She also praised Cheng’s efforts to reopen cross-strait dialogue while emphasizing that Taiwan must maintain the ability to defend itself, per Liberty Times.
Recent reports suggest the KMT caucus may be shifting toward the NT$800 billion proposal, though the final decision is expected at a caucus meeting Friday morning, per Tai Sounds. A KMT insider said most KMT lawmakers, mayors, and magistrates support setting an upper limit of NT$800 billion for arms purchases while still requiring LOAs for the final figure.
Another KMT insider said the smaller proposal was drafted in response to caucus demands and that allowing room for future additions was intended to accommodate different proposals within the party, per Tai Sounds.
A KMT official reportedly said during an internal meeting that the additional provisions were intended to demonstrate stronger oversight, though the official acknowledged that Taiwan has little bargaining power in negotiations over US arms sales. The official also expressed regret over backlash from party members opposed to the smaller proposal.
