FY2026 NDAA Bolsters U.S.–Taiwan Security Cooperation and Operationalizes Joint Defense
In a December 18 statement, the Formosan Association for Public Affairs (FAPA) welcomed Congress’s final passage of the Fiscal Year (FY) 2026 National Defense Authorization Act (NDAA) (S. 1071) on December 17, which includes multiple key pro-Taiwan provisions long championed by FAPA and the Taiwanese American community. This legislation was signed into law by President Donald Trump on December 18.
The FY 2026 NDAA authorizes $1 billion for the Taiwan Security Cooperation Initiative (Sec. 1265) — more than tripling the FY2025 level — and expands eligible assistance to include medical supplies alongside traditional defense articles, as noted by AEI Senior Fellow Zach Cooper.
The Act also mandates a joint program for the co-development and co-production of uncrewed systems and counter-uncrewed systems capabilities (Sec. 1266), requires a plan for joint and integrated U.S.–Taiwan Coast Guard training, including the deployment of U.S. Coast Guard mobile training teams to Taiwan (Sec. 7263), and advocates for Taiwan’s admission to the International Monetary Fund (Sec. 8304).
Why It Matters
This legislation outlines a whole-of-government approach to support Taiwan and counter the People’s Republic of China (PRC). Congress is demanding accountability by withholding up to 25% of Office of the Secretary of Defense travel funds until the Secretary submits the “Taiwan Security Assistance Roadmap” and a report on Department of Defense activities to support a potential “Regional Contingency Stockpile for Taiwan” (Sec. 1271). It also mandates a comprehensive joint mobilization and sustainment readiness study to assess the capability of U.S. forces to rapidly deploy and sustain a high-intensity response in the Indo-Pacific, including the Taiwan Strait (Sec. 383).
The effort also extends to the State Department, establishing a dedicated Countering PRC Influence Fund (CPIF) Unit to degrade malign operations (Sec. 5148), requiring a comprehensive strategy against cognitive warfare (Sec. 5404), and mandating reports comparing U.S.-PRC global diplomatic footprints, including country-by-country counts of posts and personnel (Sec. 5176).
Furthermore, the Act mandates a formal strategy and the establishment of an interagency task force to respond to PRC global bases (Sec. 8367), which aligns with the 2025 National Security Strategy, ensuring U.S. forces maintain freedom of movement in a potential blockade scenario.
Congressional Attention
The NDAA’s focus on U.S.–Taiwan Coast Guard cooperation addresses China’s “illegal, coercive, aggressive, and deceptive” (ICAD) gray-zone tactics highlighted in a recent hearing of the Senate Foreign Relations Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy, which is chaired by Sen. Pete Ricketts (R-NE), with Sen. Chris Coons (D-DE) serving as Ranking Member.
Additionally, the NDAA supports Taiwan’s membership in the International Monetary Fund (IMF) (Sec. 8304) by incorporating the Taiwan Non-Discrimination Act (H.R. 910 & S. 1900). This bipartisan, bicameral effort enables Taiwan to enhance its financial security against Chinese Communist Party (CCP) coercion.
Implications
The FY2026 NDAA shows that the U.S. is moving beyond passive assessment toward active operational integration and substantial resource commitment. By authorizing $1 billion for the Taiwan Security Cooperation Initiative and mandating the co-development of uncrewed systems, Washington is not only accelerating the delivery of asymmetric capabilities but also embedding Taiwan’s defense industry into the U.S. supply chain.
The legislation also reflects a comprehensive “whole-of-government” strategy designed to bolster Taiwan’s resilience against both gray-zone coercion and direct military aggression, thereby reinforcing deterrence in the Indo-Pacific. The creation of a dedicated Countering PRC Influence Fund and a robust strategy against cognitive warfare also demonstrates that Washington is preparing for both kinetic and non-kinetic challenges.
Sources:
[1] FAPA [2] S. 1071 (FY2026 NDAA) [3] AEI [4] 2025 National Security Strategy [5] Senate Foreign Relations Subcommittee Hearing [6] H.R. 910 & S. 1900 (Taiwan Non-Discrimination Act) [7] Office of Rep. Young Kim
The Taiwan Non-Discrimination Act Becomes Law as Part of FY2026 NDAA
The Taiwan Non-Discrimination Act of 2025 has been enacted as a provision of the National Defense Authorization Act for Fiscal Year 2026 (FY2026 NDAA). This was a bipartisan, bicameral effort, led by Reps. Young Kim (R-CA) and Al Green (D-TX) in the House, along with Sens. Dave McCormick (R-PA), Jacky Rosen (D-NV), Dan Sullivan (R-AK), and Elissa Slotkin (D-MI) in the Senate. The legislation stipulates that the U.S. Secretary of the Treasury, who also serves as the U.S. Governor to the International Monetary Fund (IMF), shall “vigorously support the admission of Taiwan as a member of the Fund,” and calls for Taiwan’s participation in the IMF’s regular surveillance activities.
Why It Matters
Analysts note that IMF membership would provide Taiwan with a critical institutional shield to counter Beijing’s attempts to destabilize the Taiwanese economy through the manipulation of stock markets or foreign exchange rates, particularly during a crisis.
Taiwan is the world’s 21st-largest economy and holds over US$599.79 billion in foreign exchange reserves (as of November 2025). Its membership in the IMF will provide a non-kinetic deterrent and raise the political and economic costs for Beijing to isolate or blockade Taiwan. Bloomberg estimates that a blockade of Taiwan could cost the global economy about $5 trillion.
Congressional Attention
Rep. Patrick McHenry (R-NC) has emphasized that Taiwan’s financial security is as vital as its military defense. Rep. Young Kim (R-CA) pointed to Kosovo’s IMF membership despite its lack of UN recognition, arguing that Taiwan, one of the world’s most advanced economies, deserves the same treatment. “We cannot be complicit as international organizations kowtow to Beijing and silence Taiwan’s voice,” said Rep. Kim.
Legal warfare is part of the People’s Republic of China’s (PRC) coercion toolkit, and Beijing’s distortion of United Nations General Assembly (UNGA) Resolution 2758 is an effort to falsely portray and legalize its so-called “One-China Principle” as an international legal consensus, as noted by the Global Taiwan Institute (GTI).
Adopted in 1971, UNGA Resolution 2758 resolved the question of “China’s representation” in the UN system by recognizing the representatives of the PRC government as “the only lawful representatives of China to the United Nations”; however, the resolution does not address the issue of “Taiwan’s representation” in the UN system, nor does it stipulate that Taiwan is part of the PRC or determine Taiwan’s legal and future status.
Congress has taken additional steps to clarify this distinction and prevent further isolation of democratic Taiwan. The Taiwan International Solidarity Act (H.R. 2416 & S. 2224) would require the U.S. to oppose any PRC attempts to “resolve Taiwan’s status by distorting the decisions, language, policies, or procedures” of international organizations. Simultaneously, the Taiwan Interpol Endorsement and Inclusion Act (H.R. 6262) reinforces the bipartisan consensus that Taiwan requires meaningful participation in global security networks, including the International Criminal Police Organization (Interpol).
Implications
By pushing for Taiwan’s inclusion in the IMF, Interpol, and other international organizations, the U.S. can effectively challenge the PRC’s persistent mischaracterization of UN Resolution 2758, thereby preventing Beijing from cementing a legal fiction that erases Taiwan’s independent existence under international law. The passage and enactment of the Taiwan Non-Discrimination Act represent a concrete step toward safeguarding Taiwan’s dignity, security, and economic resilience. Congress should continue to act swiftly to support Taiwan’s full participation and membership in international organizations.
Sources:
[1] H.R. 910 & S. 1900 (Taiwan Non-Discrimination Act) [2] S. 1071 (FY2026 NDAA) [3] Chicago Chronicle [4] Central Bank of Taiwan [5] Bloomberg [6] GTI [7] AP News [8] Office of Rep. Young Kim [9] H.R. 2416 & S. 2224 (Taiwan International Solidarity Act) [10] H.R. 6262 (Taiwan Interpol Endorsement and Inclusion Act)
