What next for Taiwan’s Lai as US$37 billion defence boost frozen by KMT, allies?

Name: Tens of thousands rally in Taiwan against William Lai as recall turmoil engulfs legislature
Uploaded: 2025-12-28T02:00:08.000Z
Duration: 1 min 40 s
Description: Tens of thousands rally in Taiwan against William Lai as recall turmoil engulfs legislature

Procedural blockade for eight-year military spending package has also stalled 2026 general budget review, piling up pressure on ruling DPP

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Taiwanese leader William Lai’s proposed extra defence spending has been described by his administration as “critical to deterring intensifying military pressure” from mainland China. Photo: EPA

Lawrence Chungin Taipei

Published: 10:00am, 28 Dec 2025

Taiwanese leader William Lai Ching-te’s plan to push through a NT$1.2 trillion (US$37 billion) special military spending package has been thrown into limbo as political clashes escalate over fiscal reform and a controversial court ruling.

Taiwan’s opposition-controlled legislature has blocked the cabinet-proposed “Special Act on Strengthening Defence Resilience and Asymmetric Warfare Capabilities” from committee review four times since Lai unveiled the plan in late November.

The procedural blockade has effectively frozen Lai’s eight-year spending package, described by his administration as “critical to deterring intensifying military pressure” from mainland China.

The same stand-off has also stalled review of Taiwan’s 2026 general budget, ramping up pressure on Lai’s Democratic Progressive Party (DPP) government.

01:40

Tens of thousands rally in Taiwan against William Lai as recall turmoil engulfs legislature

The deadlock – already tense since Lai took office last year – deepened when his cabinet refused to countersign amendments to a government revenue and expenditures act that would overhaul tax revenue sharing between central and local governments.

The crisis deepened further after only five members of the Constitutional Court struck down revisions to court procedure thresholds passed by parliament. The court has been left with just eight active justices out of a full 15-seat bench, after opposition lawmakers twice rejected Lai’s nominees this year.

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What next for Taiwan’s Lai as US$37 billion defence boost frozen by KMT, allies?

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Procedural blockade for eight-year military spending package has also stalled 2026 general budget review, piling up pressure on ruling DPP

Procedural blockade for eight-year military spending package has also stalled 2026 general budget review, piling up pressure on ruling DPP