Taiwan Unveils Historic US$40 Billion Special Defense Package
On November 26, Taiwan President Lai Ching-te announced a historic eight-year, NT$1.25 trillion (US$40 billion) special defense budget covering both major U.S. arms purchases and expanded asymmetric capabilities through 2033. This supplementary package, distinct from the annual general budget, aims to establish the “Taiwan Dome” (T-Dome) air defense network and reinforces Lai’s pledge to raise defense spending to 5 percent of GDP by 2030. The announcement also coincided with an op-ed by President Lai in The Washington Post on November 25, as well as the nationwide distribution of a civil defense handbook to 9.8 million households.
Why It Matters
This investment directly addresses long-standing U.S. calls for greater burden-sharing and self-reliance from its democratic partner. The package prioritizes Taiwan’s asymmetric capabilities, such as drones, mobile missiles, and mines, while the rollout builds on the concept of “Whole-of-Society Defense.”
Crucially, President Lai specifically and publicly cited Beijing’s goal of having the PLA ready to invade Taiwan by 2027, underscoring the urgency to close the window of vulnerability before the PLA achieves full readiness. This demonstrates that Taiwan is taking proactive steps to maintain peace and stability across the Taiwan Strait, aligning its security timeline with American strategic assessments.
Congressional Attention
The announcement aligns with bipartisan efforts on Capitol Hill to modernize the U.S.-Taiwan security partnership. The PORCUPINE Act (S.1744), spearheaded by Senators Pete Ricketts (R-NE) and Chris Coons (D-DE), seeks to elevate Taiwan to “NATO-plus” status, slashing notification thresholds to match the urgency of Lai’s new budget.
Additionally, Representatives Zach Nunn (R-IA) and Jill Tokuda (D-HI) have introduced the U.S.-Taiwan Defense Innovation Partnership Act (H.R.4860). This legislation is essential for facilitating the technology transfers required for Taiwan’s new AI and drone initiatives. These proposed bills ensure that American defense industries remain central to Taiwan’s modernization efforts while deepening interoperability between the two nations.
Implications
The special budget represents a critical investment in mutual security, a reality underscored by American Institute in Taiwan Director Raymond Greene. In response to Lai’s op-ed, former Indo-Pacific defense officials Ely Ratner and Randall Schriver urged Washington to fully utilize already-appropriated funds. While potential domestic political hurdles exist in Taiwan (Ryan Hass, Brookings), the increase in defense spending is a “step in the right direction” (Wilson Beaver, Heritage).
Congress now has a unique opportunity. Passing these pending bills will enable the U.S. to capitalize on Taiwan’s investment and lock in the security partnership for the next decade.
Sources:
[1] Focus Taiwan
[2] Focus Taiwan
[3] Focus Taiwan
[4] Washington Post
[5] Taipei Times
[6] CommonWealth Magazine
[7] CNA (in Hanji)
[8] Office of Rep. Jill Tokuda
[9] Taipei Times
[10] Washington Post
[11] Brookings Institution
[12] Heritage Foundation
House Introduces Bill to Support Taiwan’s Membership in Interpol
On November 21, Representative Lance Gooden (R-TX) introduced the bipartisan Taiwan Interpol Endorsement and Inclusion Act (H.R.6262), joined by Representatives Brad Sherman (D-CA), Pete Sessions (R-TX), Tom Tiffany (R-WI), and Ted Lieu (D-CA) as original cosponsors.
The legislation directs the Secretary of State to develop a strategy to support Taiwan’s membership in the International Criminal Police Organization (Interpol), citing Taiwan’s strong crime-fighting capabilities and the need to close a critical gap in global law enforcement cooperation. Taiwan has been excluded from Interpol since 1984, despite repeated requests for observer status.
Why It Matters
Criminal networks have become increasingly global, digital, and agile, complicating efforts to combat cross-border money laundering, drug trafficking, and cybercrime. Organized crime expert Dr. John Coyne argues that only a coordinated international policing network can effectively counter such threats, noting that no single agency, no matter how well-resourced, can tackle them alone.
Taiwan’s continued exclusion from Interpol’s databases, communication channels, and coordination forums undermines these global crime-fighting efforts. Dr. Coyne warns that excluding Taiwan, one of the Indo-Pacific’s most capable law enforcement partners, creates a serious vulnerability.
In a 2025 General Assembly resolution, Interpol flagged the rapid expansion of transnational scam centres and trafficking networks worldwide, including, but not limited to, Southeast Asia. A related crime trend update reported that victims from more than 60 countries have been trafficked into these criminal hubs.
Given Taiwan’s position as a major logistics, cyber, and financial hub bridging Southeast and Northeast Asia, regularly processing billions in cross-border transactions, its exclusion creates a blind spot in the very global network Interpol seeks to strengthen.
Congressional Attention
A U.S.-China Economic and Security Review Commission (USCC) report estimates Americans lost $5 billion to online scams orchestrated by China-linked fraud centers in 2024, while FTC data show more than $12.5 billion in total reported consumer fraud losses that year. At a Senate Judiciary hearing, Senator Chuck Grassley (R-IA) called these criminal networks “a national security crisis hiding in plain sight.”
Support for Taiwan’s inclusion in Interpol also reflects long-standing bipartisan backing for its meaningful participation in international organizations, consistent with the TAIPEI Act of 2019 and the proposed Taiwan International Solidarity Act (S.2224 & H.R.2416).
Implications
Despite its exclusion from many international organizations, Taiwan continues substantive engagement through the multilateral Global Cooperation and Training Framework (GCTF), sharing its expertise with partners such as the U.S., Japan, Australia, Canada, and the U.K. Taiwan’s cybercrime units, financial intelligence teams, and counter-narcotics officers have a proven record of collaborating with the U.S. on drug enforcement and combating financial frauds.
If enacted, Rep. Gooden’s bill would require the U.S. government to develop concrete plans to support Taiwan’s inclusion in Interpol as a member, helping to counter Beijing’s political pressure.
Sources:
[1] Office of Rep. Lance Gooden
[2] Focus Taiwan
[3] Australian Strategic Policy Institute
[4] Interpol
[5] Australian Institute of International Affairs
[6] USCC
[7] FTC
[8] Senate Judiciary Committee
[9] GCTF
[10] AIT
[11] AIT
President Trump Signs Taiwan Assurance Implementation Act into Law
On December 2, President Trump took a significant step toward normalizing U.S.-Taiwan engagement by signing the Taiwan Assurance Implementation Act (H.R.1512) into law. Following the House’s and the Senate’s unanimous passages on May 5 and November 18, respectively, the bill’s enactment underscores strong bipartisan unity on Taiwan policy.
This Act (Public Law 119-45) requires the State Department to review, update, and report on its Taiwan engagement guidance at least every five years, targeting decades-old restrictions that have limited high-level contact and led to inconsistent implementation across administrations.
Why It Matters
Regular updates to Taiwan engagement guidelines help strengthen U.S. credibility, ensuring consistent, up-to-date guidance. The Act creates a more durable framework for managing U.S.-Taiwan relations. It provides Taiwan with clearer engagement channels, preventing outdated U.S. self-imposed restrictions from hampering cooperation.
It further reinforces the implementation of existing legislation, such as the Taiwan Travel Act and the Taiwan Assurance Act, ensuring steadier and more supportive U.S. engagement with Taiwan amid rising pressure from Beijing.
FAPA Position
In a November 20 statement, FAPA National President Dr. Su-Mei Kao welcomed Congress’s passage of the Taiwan Assurance Implementation Act as an important step toward normalizing U.S.–Taiwan engagement, noting that regular updates to State Department guidance and high-level exchanges align with the 2018 Taiwan Travel Act, which FAPA also championed.
She added that it is more critical than ever for the United States to reaffirm its support for Taiwan, a democratic partner on the front line of Beijing’s aggression. “Facilitating high-level exchanges not only strengthens U.S.–Taiwan relations but also signals the United States’ enduring commitment to regional security,” Dr. Kao said.
