Cabinet approves NT$295 billion special budget for U.S. arms purchases

Taipei, May 20 (CNA) Taiwan's Cabinet on Wednesday approved a special budget proposal that allocates nearly NT$295 billion (US$9.3 billion) for a package of weapons already approved for sale to Taiwan by the United States.

The proposal was approved after the Legislative Yuan passed a special act earlier this month authorizing up to NT$780 billion in spending on two batches of U.S. arms purchases between 2026 and 2033.

Under the act, funding for the first batch of weapons purchases approved by the U.S. in December 2025 is capped at NT$300 billion, and the Cabinet's proposal will request almost all of that amount.

The Cabinet's budget request, which will be sent to the Legislative Yuan for a final review, earmarks around NT$8.8 billion for 2026 as the first annual allocation under the plan.

Funding will be covered by government borrowing in accordance with the Fiscal Discipline Act.

Premier Cho Jung-tai (卓榮泰) said the budget includes funding for five weapons systems: M109A7 self-propelled howitzers, High Mobility Artillery Rocket Systems (HIMARS), anti-armor drones, Javelin anti-tank missiles and TOW 2B anti-tank missiles.

Cho said the acquisitions were aimed at strengthening Taiwan's combat capabilities and keeping the procurement programs timely and on schedule.

He noted that a payment deadline for the HIMARS systems is set for May 31 and urged lawmakers across party lines to support the special budget bill and pass it "as quickly as possible."

Under the special act passed by the Legislative Yuan, while spending caps were approved, any procurement proposals are still subject to final legislative review.

The act's spending cap for a second arms package expected to be announced by Washington was NT$480 billion.