Taiwan Legislative Yuan Passes NT$780B (US$24.8B) Special Defense Budget — Largest in History; KMT/TPP 59-0 With 48 Abstentions; 6 Days Before Trump-Xi Summit; $14B PAC-3/NASAMS Package Still Pending

Taiwan's Legislative Yuan passed the Special Law for Procuring Defense Equipment (NT$780 billion / ~US$24.8 billion) on May 8, 2026 — the largest defense budget in Taiwan's history — clearing the body 6 days before the May 14-15 Trump-Xi Beijing summit. The bill passed 59-0 with 48 abstentions, driven by the combined KMT-TPP legislative majority. The NT$780 billion figure represents a compromise between the ruling DPP government's NT$1.25 trillion request and the KMT's NT$380 billion and TPP's NT$400 billion alternatives. The final bill is structured in two phases: Phase 1 (NT$300 billion) covers previously US-approved arms from the December 2025 $11.154B package — including 82 HIMARS launchers, M109A7 self-propelled howitzers, Javelin and TOW anti-tank missiles, and anti-armor drone systems; Phase 2 (NT$480 billion) is specifically designated to fund an anticipated second US arms package. The $14 billion PAC-3 MSE / NASAMS package remains on hold and will not be formally announced until after President Trump's Beijing visit. The American Institute in Taiwan emphasized that a 'comprehensive' special budget is crucial for Taiwan's deterrence capability and had actively lobbied for passage. The NT$780B passage came one day after Taiwan became eligible for a floor vote — May 8 was the first permissible date after the 4th cross-party negotiation round collapsed on May 6. The bill runs through 2033 with potential legislative extension. Critics note the NT$780B figure is 37.5% below the full NT$1.25T request and the Phase 2 PAC-3/NASAMS arms remain formally unapproved pending the Trump-Xi summit outcome.