Legislative Yuan Passes NT$8.81B Special Defense Procurement Budget — Third Reading; HIMARS, M109A7, Anti-Armor Drones Funded; 2 Days Before May 31 Deadline

Taiwan's Legislative Yuan passed the NT$8.81 billion FY2026 special arms procurement budget on its third reading on May 29, 2026 — two days before the critical May 31 HIMARS first payment (NT$800 million) deadline — resolving the legislative bottleneck that had raised concerns about a missed contract deadline. The budget passed without opposition after clearing the combined Foreign Affairs/National Defense and Finance Committees on May 27 with only a nominal NT$2 million cut. The NT$8.81 billion FY2026 annual tranche is funded from the broader NT$295 billion Cabinet-approved special procurement package (approved May 20). Procurement breakdown: NT$3.9 billion for M109A7 self-propelled howitzers; NT$2.8 billion for HIMARS (High Mobility Artillery Rocket System, 82 launchers); NT$1.8 billion for anti-armor drone systems; plus Javelin anti-tank missiles and TOW 2B wire-guided anti-armor missiles. The legislation also authorizes up to NT$780 billion (US$26 billion) in total US arms procurement spending between 2026 and 2033. Defense Minister Wellington Koo had testified on May 26 that HIMARS provides Taiwan with 300 km deep-strike capability against PLA missile launch platforms. The Executive Yuan had authorized emergency reserve funds as a payment backstop to ensure no contract cancellation regardless of legislative timing. The US State Department had responded to concerns about delays: 'Funding delays can only benefit Beijing.' With the HIMARS budget now formally passed, Taiwan is positioned to meet the May 31 NT$800 million down payment deadline for all 82 launchers.