US$12 billion in financing for Taiwan to buy weapons in U.S. bill

Washington, Dec. 6 (CNA) The United States Congress has released the final version of the 2023 National Defense Authorization Act (NDAA) that authorizes up to US$12 billion in grants and loans to Taiwan over the next five years to buy U.S. weapons.

The act would authorize up to US$2 billion in annual grants from 2023 to 2027 and an additional US$2 billion in loans for Taiwan to use to bolster its military capabilities with weapons from the United States.

It also authorizes a regional contingency stockpile for Taiwan of up to US$100 million in munitions a year for use in the event of a conflict.

The act also recommends Washington to invite Taiwan to attend the next version of the U.S.-organized Rim of the Pacific Exercise (RIMPAC) military exercise in 2024.

The compromise version of the NDAA, a bill that is passed annually to set policy for the Pentagon, was the result of months of negotiations across party lines in the Senate and House of Representatives.

This legislation was based on two bills: the House version of the NDAA for Fiscal Year 2023, which passed the House on July 14, 2022, and the Senate version of the NDAA for Fiscal Year 2023, which was approved by the Senate Armed Services Committee on June 16, 2022.

According to a press release issued by Senate and House Armed Services Committee, this version of NDAA authorizes US$817 billion for the Department of Defense (DOD) and $29 billion for national security programs within the Department of Energy (DOE).

It also authorizes critical investments in military technology, delivers a 4.6 percent pay raise to America's service members, and ensures they have the support, equipment, and training they need, the press release said.

According to a Reuters report, the fiscal 2023 NDAA is expected to pass the Senate and House of Representatives this month, before being sent to the White House for U.S. President Joe Biden to sign into law.