TAIPEI (Taiwan News) — Taipei Mayor Chiang Wan-an (蔣萬安) on Wednesday rejected a central government proposal that requires local governments to share the cost of Taiwan's rent subsidy program.
Taiwan's rent subsidy program was previously funded jointly by central and local governments, per UDN. However, the central government assumed full responsibility for the program after it expanded eligibility requirements in 2022.
On Saturday, the National Land Management Agency announced plans to return to the previous cost-sharing model, citing reduced central government revenues following amendments to revenue allocation laws, per CNA.
Chiang first voiced his opposition on Sunday, arguing that local governments should not be required to finance what he described as central government campaign promises, per Tai Sounds. Interior Minister Liu Shyh-fang (劉世芳) responded Wednesday by calling on all levels of government to work together to protect vulnerable groups, per Z.Media.
Liu said local governments would collectively be responsible for about NT$8 billion (US$254 million) under the proposal. She added that local governments are expected to receive approximately NT$400 billion in additional funding through changes to revenue allocation laws. In response, Chiang reiterated his rejection, per ETtoday.
The agency raised the idea of restoring local cost-sharing last year. At the time, Liu urged local governments to contribute funding to ensure younger residents would not be affected by potential budget shortfalls following amendments to revenue allocation laws, per Storm Media.
Chiang criticized the proposal, noting that the central government is citing the amended revenue allocation law as justification for reducing social spending while simultaneously challenging the law's constitutionality, per Liberty Times. Taichung Mayor Lu Shiow-yen (盧秀燕) said reductions in general grants allocated to Taichung would make it difficult for the city to contribute additional funding, although she supports continuing the subsidy program, per CNA.
Several DPP mayors also expressed concerns.
Tainan Mayor Huang Wei-che (黃偉哲) said reduced general grants, combined with additional rent subsidy obligations, would increase the city's financial burden, per Storm Media. Kaohsiung Mayor Chen Chi-mai (陳其邁) said it would be preferable for the central government to continue fully funding the program but added that he would discuss possible solutions with central authorities, per Liberty Times.
