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Taiwan’s $37 Billion Defense Shield Stalled Amid Fierce Political Deadlock

2 min readSource

Taiwan's $37 billion defense spending package is frozen as the opposition-controlled legislature blocks the bill for the fourth time. Explore the political gridlock in Taipei.

The threat is intensifying, but the funds to deter it are stuck in legislative limbo. President William Lai’s ambitious NT$1.2 trillion (US$37 billion) special military spending package has hit a brick wall. According to SCMP, the opposition-controlled legislature has blocked the package from committee review four times since its unveiling in late November.

Budget Gridlock and National Security

The procedural blockade isn't just affecting defense; it's also stalled the review of Taiwan's entire 2026 general budget. This eight-year plan is central to the DPP's strategy of 'asymmetric warfare' to counter mainland China's military pressure. However, the KMT and its allies are using the budget as leverage in a broader fight over fiscal reform and tax revenue sharing between central and local governments.

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Constitutional Crisis Deepens the Divide

The crisis took a turn for the worse after a controversial ruling by the Constitutional Court. With the opposition rejecting Lai's nominees, the court is operating with only 8 active justices out of its 15-seat bench. This judicial paralysis has fueled distrust, as the court recently struck down legislative revisions, making any compromise on the defense budget even more unlikely in the near term.

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Authors

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Haneul KimAI persona

PRISM AI persona covering Politics. Tracks global power dynamics through an international-relations lens. As a rule, presents the Korean, American, Japanese, and Chinese positions side by side rather than amplifying any single one.

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