U.S. House Passes FY27 NSRP Appropriations Bill, Reinforcing Support for Taiwan

On July 15, 2026, the U.S. House of Representatives passed the $47.32 billion Fiscal Year 2027 (FY27) National Security, Department of State, and Related Programs (NSRP) Appropriations Act (H.R.8595) in a 217-209 vote.
 
House Appropriations Committee Chairman Tom Cole (R-OK) emphasized that the bill maintains strong support for key allies, including Taiwan, while countering threats from the People’s Republic of China (PRC) and other adversaries.
 
Key Taiwan-Related Provisions
 
The legislation includes several critical provisions that support Taiwan and bolster stability in the Indo-Pacific.

• Defense Support: Provides at least $500 million under the Foreign Military Financing (FMF) Program to assist Taiwan in acquiring U.S. defense articles, services, and training. It also directs the Secretary of State, in coordination with the Secretary of Defense, to prioritize the delivery of defense articles and services to Taiwan.

• Taiwan “Honest Maps”: Prohibits funds made available by the Act from being used to create, procure, or display any map that inaccurately depicts Taiwan’s territory and social and economic system, or the islands administered by Taiwan authorities.

• Countering PRC’s Global Influence: Provides no less than $1.8 billion to advance U.S. national security interests in the Indo-Pacific, including at least $400 million for a dedicated Countering PRC Influence Fund. It also prohibits foreign governments from using funds provided under this Act to repay debts owed to Communist China.

• Leveraging U.S. Bilateral Aid: Directs the Secretary of State to review foreign governments’ UN voting records and their support for Taiwan’s participation as an observer in multilateral agencies, bodies, or commissions when considering U.S. bilateral assistance for a foreign government.

  
Implications

The bill signals a more operational approach to supporting Taiwan. It provides direct military financing and incorporates foreign governments’ support for Taiwan as a factor in U.S. bilateral aid decisions. The dedicated Countering PRC Influence Fund and the Taiwan “Honest Maps” provision further counter Beijing’s global coercion.

Taken together, the legislation reflects continued congressional support for Taiwan’s self-defense and international participation while underscoring Taiwan’s strategic importance to U.S. national security interests in the Indo-Pacific.

Sources:
[1] Taipei Times   [2] H.R.8595 (FY27 NSRP Appropriations Bill)   [3] House Appropriations Committee

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TSMC’s US$100 Billion U.S. Expansion Deepens Bilateral Industrial Integration

On July 16, 2026, Taiwan Semiconductor Manufacturing Co. (TSMC) announced a landmark additional US$100 billion investment in its Arizona operations. According to TSMC Chairman and CEO C.C. Wei (魏哲家), the new commitment will fund four additional leading-edge wafer fabrication plants and advanced packaging facilities. The announcement brings TSMC’s total planned U.S. investment to US$265 billion.
 
U.S. officials, including U.S. Commerce Secretary Howard Lutnick and American Institute in Taiwan (AIT) Director Raymond Greene, welcomed TSMC’s investment for strengthening supply chain resilience and creating high-paying American jobs.
 
AI Demand Accelerates Taiwanese Investment in the U.S.
 
Surging AI demand is accelerating TSMC’s U.S. expansion. At TSMC’s second-quarter earnings conference, Wei highlighted “very strong signal and positive outlook” from major cloud service providers, reaffirming TSMC’s confidence in a “multi-year AI megatrend.” He added that agentic AI and rapid data center construction are driving massive demand for advanced silicon, CPUs, and AI accelerators.
 
Beyond TSMC, Taiwan’s broader technology sector is also scaling up U.S. operations. In May, 20 Taiwanese companies — spanning semiconductor suppliers and AI server manufacturers — expressed interest in investing a combined US$35 billion in the United States.
 
Taiwan’s government has also introduced measures to support companies investing in the U.S., including a government-backed financing guarantee mechanism with an initial US$1.375 billion financing pool. Applications for the credit guarantees are expected to open as early as this July.
 
Urgent Double-Tax Relief for Deeper Economic Integration
 
TSMC’s latest U.S. expansion reflects a broader shift in U.S.-Taiwan economic relations toward deeper, long-term integration in investment and advanced manufacturing. Yet, the bilateral policy framework has not kept pace with this rapidly expanding economic relationship.
 
Taiwan remains the only top-ten U.S. trading partner without a bilateral tax agreement. The lack of bilateral double-tax relief poses a severe structural challenge, raising costs for Taiwanese firms operating in the U.S., with some estimated to face effective tax burdens of up to 51% on U.S. profits.
 
FAPA therefore urges the U.S. Senate to swiftly pass the United States-Taiwan Expedited Double-Tax Relief Act (S.199), whose House companion (H.R.33) passed by an overwhelming 423–1 vote in January 2025. Enacting the legislation would provide treaty-like tax relief and remove a major competitive disadvantage facing Taiwan.
 
Sources:
[1] Focus Taiwan   [2] Focus Taiwan   [3] Reuters   [4] Taipei Times   [5] Focus Taiwan   [6] Formosan Association for Public Affairs (FAPA)   [7] S.199 / H.R.33 (United States-Taiwan Expedited Double-Tax Relief Act)