New defense bill threatens payment deadline for U.S. HIMARS: President

Tainan, May 9 (CNA) President Lai Ching-te (賴清德) said Saturday that the initial payment for the U.S.-made High Mobility Artillery Rocket Systems (HIMARS), due by May 31, may not be completed in time due to a defense bill passed by the Legislature on Friday.

The bill stipulates a budget review process that "departs from established practice," which could jeopardize the payment that must be settled by the end of May, Lai said in response to reporters' questions on the supplementary defense budget bill.

According to the bill, the Executive Yuan must, within one month of its passage, submit a report on the first batch of letters of offer and acceptance (LOAs) for five types of weapons, including HIMARS, M109A7 self-propelled howitzers, and obtain legislative approval before funding can be disbursed.

• Taiwan passes U.S. arms bill with spending ceiling of US$24.8 billion

With such a procedural "hurdle" in the bill, it could result in the Executive Yuan being unable to allocate funding for the weapons it was designed to finance, Lai said.

The bill, introduced and supported by the opposition Kuomintang (KMT) and Taiwan People's Party (TPP), sets a defense budget cap of NT$780 billion (US$24.8 billion) for 2026 to 2033, scaled down from the NT$1.25 trillion proposed by the ruling Democratic Progressive Party, which abstained in Friday's vote.

Lai acknowledged the passage of the bill as "not easily achieved," against the backdrop of the NT$1.25 trillion proposal having been stalled since November last year.

However, he suggested cuts to funding that would have been used for commercial procurement for military acquisitions and to commission projects with Taiwan's National Chung-Shan Institute of Science and Technology (NCSIST) and local defense industry will have a significant impact on the nation's defense capabilities.

Lai urged all parties to expedite approval of related budget requests, citing national security, social stability, and the development of Taiwan's industries as key considerations.

Later on Saturday, KMT Legislator Hsu Chiao-hsin (徐巧芯) said the KMT will rigorously review the budget but will not hold up the process, noting that this has been the party's long-standing stance.

The bill contains two main funding provisions: NT$300 billion for U.S. arms sales already approved for Taiwan on Dec. 17, 2025, and NT$480 billion for an arms package expected to be announced by Washington in the future.

The package already approved by the U.S. included HIMARS, M109A7 self-propelled howitzers, TOW 2B missiles, Altius-700M and 600 drones, and Javelin anti-armor missiles.

The bill did not specify the items Taiwan expects to acquire from the U.S. in the future, but it outlined broad categories for the weapons.