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Taiwan Unveils $40 Billion Eight-Year Defense Plan Focused on U.S. Arms and ‘T‑Dome’

U.S. support contrasts with opposition doubts over financing, leaving the plan’s fate to the legislature.

Overview

  • President Lai proposed a special NT$1.25 trillion (about US$40 billion) defense budget for 2026–2033 to accelerate precision missiles, asymmetric systems, and joint programs with the United States.
  • Funds would develop the layered air-defense “T‑Dome,” described as an advanced detection and interception network for island-wide protection.
  • The package is designed to lift defense spending to roughly 3.3% of GDP in 2026, with a stated goal of reaching 5% by 2030.
  • The American Institute in Taiwan’s director, Raymond Greene, publicly welcomed the plan and urged rapid acquisition of critical asymmetric capabilities, following a recent U.S. sale of about US$330 million.
  • Beijing condemned the proposal as driven by “external forces,” while Taiwan’s Kuomintang leader Cheng Li‑wun questioned debt limits and feasibility, leaving approval uncertain.