Taiwan's Legislative Yuan Passes $25 Billion Defense Budget After Six-Month Stalemate (warontherocks.com)

• Budget passed at $25B, down from $40B request
• KMT centrists overruled chairwoman's minimalist $12B proposal
• Domestic innovation programs (Strong Bow, drones) cut

"Taiwan's parliament passed a $25 billion defense budget on May 8, 2026, ending a six-month deadlock. The budget is $15 billion less than President Lai Ching-te's original $40 billion request. The compromise, driven by opposition Kuomintang centrists, funds U.S. hardware but cuts domestic innovation like the Strong Bow air defense system and drone programs. The delay strained U.S.-Taiwan relations, with U.S. senators pressuring Taiwan. KMT Chairwoman Cheng Li-wun's pro-Beijing stance and her peace mission to China exposed internal party divisions. The budget passage reflects domestic political bargaining rather than a unified will to defend, highlighting Taiwan's fiscal constraints and public skepticism."