The NT$1.25 trillion (US$39.5 billion) special national defense budget bill submitted by the Cabinet in November 2025 has been blocked ten times by the Kuomintang (KMT) and Taiwan People’s Party (TPP) and has yet to enter the review process. The TPP caucus has now introduced its own version of an arms procurement bill, cutting the proposed budget to NT$400 billion (US$12.7 billion) and advocating for a one-year-at-a-time budgeting approach.

President Lai Ching-te (賴清德) suggested during an interview on Tuesday that the Legislature should not overstep its bounds as an oversight body and leave defense-related matters to the Defense Ministry. He stressed that the constitutional system must maintain a clear division of labor and cooperation.

The Cabinet’s proposal, which would amount to roughly NT$150-160 billion annually, aims to build a “Taiwan Shield,” establish a smart, integrated offense-and-defense system, and promote the sustainable development of the defense industry. These components, he said, are all interconnected and indispensable.

As for opposition demands that the president personally address the Legislature on the defense budget before allowing it to proceed to review, Lai said that they may invite him to deliver a national security briefing, or he could seek approval to do so. 

Regarding Taiwan-U.S. trade negotiations, Lai said Taiwan expended a great deal of effort to secure a 15% tariff rate that does not stack. He urged opposition parties to avoid scorched-earth tactics that would negate these efforts and negatively impact the economy.