Budget holdup could cost dealsStaff writer, with CNAA US college professor has said that Washington’s “America First Arms Transfer Strategy” is good for Taiwan, but warned that continued delays in passing defense budgets could jeopardize Taiwan’s priority partner status. The national flags of Taiwan, bottom left, and the US fly outside a hotel in Houston, Texas, on Jan. 8, 2017. Lai has said Taiwan’s defense spending is expected to rise to 3.3 percent of gross domestic product this year and that the government aims to increase that to 5 percent by 2030. Hunzeker said that the US executive branch and US Congress are “clearly unhappy” that Taiwan’s regular defense budget and special defense budget have been blocked in the Legislative Yuan. The KMT said it would immediately review the defense budget with the Taiwan People’s Party if the Democratic Progressive Party-led government would approve pay raises for military personnel.

Source: Taipei Times February 08, 2026 17:22 UTC