Cabinet to challenge NT$10,000 cash handout in Constitutional Court

Taipei, July 31 (CNA) The Executive Yuan will ask the Constitutional Court to review a provision passed by the opposition-led Legislature requiring the government to distribute NT$10,000 (US$331) to every Taiwanese citizen, Cabinet spokesperson Michelle Lee (李慧芝) said Thursday.

At a news briefing in Taipei, Lee said the cash handout provision --part of a special act aimed at cushioning potential economic headwinds -- violates the Constitution.

The cash handout provision "contains legal flaws" and warrants a Constitutional Court review, Lee said, though she did not specify when the Cabinet would file the petition.

● Premier Cho likens opposition to 'legal illiterates' over cash handouts

The legislation authorizes the government to allocate up to NT$530 billion to strengthen Taiwan's security infrastructure and provide relief to businesses and individuals likely to be affected by potential U.S. tariffs and their broader economic impact.

While past administrations from different parties have issued cash handouts, the current government argues that such decisions fall within the executive branch's authority.

The Cabinet cited Article 91 of the Budget Act, which requires lawmakers proposing bills involving significant government spending to first consult the executive branch.

The cash handout provision, backed by the opposition Kuomintang (KMT), risks infringing on executive powers, the Cabinet said.

Even if the Cabinet brings the case to the Constitutional Court, it may not move forward as hoped.

The eight-member court is currently unable to hear cases after opposition lawmakers passed a measure last December requiring at least 10 justices for adjudication, while repeatedly blocking President Lai Ching-te's (賴清德) nominees to fill seven vacant seats.

The Cabinet's latest move signals its intent to keep pushing back against measures passed by opposition lawmakers from the KMT and Taiwan People's Party -- who together hold a majority in the Legislature.

Lee also suggested Thursday that the Cabinet might propose amendments to the special act, depending on the outcome of trade talks between Taipei and Washington, but gave no details on what those changes might involve.

In addition to the cash handouts, which will cost an estimated NT$230 billion, the act also includes NT$150 billion for military and Coast Guard system upgrades and NT$93 billion in relief measures to help Taiwanese exporters absorb potential tariff shocks.

The Cabinet's proposal to allocate NT$100 billion in aid to the financially struggling Taiwan Power Co. (Taipower) was not included in the package.

According to the spokesperson, the special act, passed the Legislature earlier this month, is set to be signed into law by Lai on Friday.