# US-Taiwan arms delays and drone defense developments

> Live situation record from CLSTR: https://clstr.news/situations/us-pushes-taiwan-14-b-arms-sale-as-china-delays-pentagon-visit
> Updated: 2026-09-01T01:40:41.000Z. Sources: 96. Developments: 21.

The $14 billion U.S. arms package for Taiwan, approved by Congress in early 2025, has faced significant delays. In May 2026, Acting U.S. Navy Secretary Hung Cao informed a Senate subcommittee that the sale was temporarily paused to preserve munitions for “Operation Epic Fury,” a U.S. campaign against Iran. While some White House sources suggested the delay was procedural, President Donald Trump has also indicated the deal could serve as a “negotiating chip” in discussions with Chinese President Xi Jinping. In response, the U.S. Senate passed the Fiscal Year 2027 NDAA, authorizing a war reserve stockpile for Taiwan and labeling China as part of an “Axis of Aggressors.”

Taiwan is pursuing an asymmetric defense strategy centered on unmanned systems. On August 26, 2026, the Legislative Yuan passed the ‘Act for Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry.’ This six-year plan, which passed with a 60-50 vote, sets a spending cap of approximately NT$240 billion ($7.56 billion) to be drawn from the regular annual budget, allocating NT$40 billion each year. The legislation represents an opposition victory, as lawmakers rejected the government’s competing NT$210 billion ($6.6 billion) special budget proposal. While the administration argued a dedicated fund was necessary for the rapid procurement of roughly 210,000 unmanned systems, the opposition favored the annual budget model to ensure stricter oversight and prevent “excessive spending.”

The new law divides authority between the Ministry of Economic Affairs for industry development and the Ministry of National Defense for military procurement. To bolster immediate capabilities, the Ministry of National Defense has awarded a NT$26.9 billion ($847 million) contract to U.S.-based Anduril Industries for Altius-700M loitering munitions and Altius-600ISR reconnaissance drones.

## Claims

- President Lai Ching-te is advocating for a T$210 billion ($6.6 billion) six-year special budget for military drone procurement. (disputed by 8 sources)
- The Parliament rejected a special budget of over 210 billion Taiwan dollars intended to run through 2031. (disputed by 3 sources)
- The Legislative Yuan passed the 'Act for Strengthening Defense Autonomy and Unmanned Vehicle Industry Development' on its third reading. (corroborated by 11 sources)
- The Act mandates the central government to allocate a total of NT$240 billion over six consecutive years, with a principle of NT$40 billion annually. (corroborated by 10 sources)
- The Ministry of Economic Affairs is the primary competent authority, but the Ministry of National Defense holds authority over defense and military procurement matters. (corroborated by 8 sources)
- The government aims to purchase approximately 210,000 new military drones. (corroborated by 7 sources)
- The opposition party proposes capping annual drone spending at T$40 billion through the annual budget. (corroborated by 5 sources)
- Lawmakers established a six-year spending regulation totaling 240 billion Taiwan dollars, which can be increased if necessary. (corroborated by 3 sources)
- The Ministry of Defense warned that the annual spending cap might hinder the development of effective drone capabilities. (corroborated by 3 sources)
- Young Kim led a bipartisan U.S. House delegation to Taiwan from July 30 to August 1, 2024. (corroborated by 2 sources)

## Timeline

### 2026-09-01: Taiwan KMT questions drone funding after Qiang-gung missile moves to annual budget

The KMT criticized Taiwan's Ministry of National Defense after the 36 billion TWD Qiang-gung missile project was moved from the special budget to the annual budget, questioning drone funding logic.

2 sources. https://clstr.news/cluster/taiwan-kmt-questions-drone-funding-after-qiang-gung-missile-moves-to-annual-budget

### 2026-08-28: Taiwan Parliament approves annual military drone funding

Taiwan's Parliament approved annual military drone spending of 40 billion Taiwan dollars but rejected a 210 billion Taiwan dollar special budget, opting instead for a 240 billion six-year spending plan.

3 sources. https://clstr.news/cluster/taiwan-parliament-approves-annual-military-drone-funding

### 2026-08-27: Taiwan Legislative Yuan negotiates UAV budget and referendum law

Taiwan's Legislative Yuan is negotiating multiple versions of a UAV budget. The KMT postponed a referendum law vote to seek progress on drone funding, amid DPP concerns over political oversight.

3 sources. https://clstr.news/cluster/taiwan-legislative-yuan-negotiates-uav-budget-and-referendum-law

### 2026-08-26: Taiwan passes NT$240 billion drone industry and defense act

Taiwan's legislature passed a six-year, NT$240 billion plan to develop a domestic drone industry and strengthen asymmetric defense, rejecting a competing special budget proposed by President Lai's government.

23 sources. https://clstr.news/cluster/taiwan-defense-budget-faces-political-deadlock-over-drone-procurement

### 2026-08-15: Taiwan approves NT$44.2 billion budget for drone industry

Taiwan has approved a NT$44.2 billion budget for its UAV industry, though the move faces technical scrutiny and political debates over military procurement and national security regulations.

2 sources. https://clstr.news/cluster/taiwan-approves-nt442-billion-budget-for-drone-industry

### 2026-07-30: Taiwan urged by US delegation to fast‑track drone legislation

U.S. Rep. Young Kim’s bipartisan delegation urged Taiwan to fast‑track a drone law, allocating about NT$210 bn for domestic production and boosting defense spending to 5 % of GDP by 2030.

6 sources. https://clstr.news/cluster/us-congressional-delegation-visits-taiwan-emphasizes-drone-law-and-partnership

### 2026-07-22: Taiwan's UAV Development Plan Faces Budget Cut Push by Opposition

Taiwan's NT$44 bn UAV development plan faces a KMT‑driven budget cut, risking disaster‑response drones and a goal to become an Asia‑Pacific UAV hub by 2030.

3 sources. https://clstr.news/cluster/taiwans-uav-development-plan-faces-budget-cut-push-by-opposition

### 2026-07-19: Japan to develop unmanned surface vessels to counter Chinese maritime activity

Japan will fund unmanned surface vessels in its 2027 budget to monitor Chinese ships, aiming for deployment by 2032 and to ease Coast Guard staffing shortages.

2 sources. https://clstr.news/cluster/japan-to-develop-unmanned-surface-vessels-to-counter-chinese-maritime-activity

### 2026-07-15: Taiwan orders dozens of autonomous sea drones to counter Chinese maritime pressure

Taiwan will buy 25 USVs and 2 UUVs, joining forces with U.S. firm MARTAC, to strengthen Coast Guard surveillance and deter Chinese maritime pressure.

3 sources. https://clstr.news/cluster/taiwan-to-acquire-27-usbuilt-sea-drones-to-counter-chinese-maritime-pressure

### 2026-07-02: Taiwan urged to become a ‘hornet’s nest’ of drones, US diplomat says

U.S. diplomat Raymond Greene urged Taiwan to build a ‘hornet’s nest’ of drones, proposing a T$210 bn defence budget as Taiwan faces rising Chinese pressure.

15 sources. https://clstr.news/cluster/taiwans-taichung-drone-forum-spotlights-us-partnership-and-1-trillion-market-potential

### 2026-06-29: Taiwan's Kuomintang proposes $7.5 billion drone funding plan

Taiwan’s Kuomintang proposes a NT$240 billion (US$7.5 billion) six‑year drone program, seeking annual‑budget oversight and domestic sourcing, opposing the DPP’s NT$210 billion special‑budget plan.

2 sources. https://clstr.news/cluster/taiwans-kuomintang-proposes-75-billion-drone-funding-plan

### 2026-06-29: Taiwan UAV legislation sparks budget showdown between government and opposition

Taiwan's government proposes a NT$2100 bn special‑budget UAV law, while the opposition pushes a NT$2400 bn regular‑budget plan, sparking political and constitutional disputes.

6 sources. https://clstr.news/cluster/taiwan-pushes-24trillionnt-drone-autonomy-bill-through-parliament

### 2026-06-23: China ramps up pressure on Taiwan over $14 billion U.S. arms package

China pressures Taiwan over a stalled $14 billion U.S. arms sale; Taiwan conducts drills as Chinese forces encircle the island, raising regional security concerns.

3 sources. https://clstr.news/cluster/taiwan-seeks-14-billion-us-arms-package-as-china-ramps-up-pressure

### 2026-06-11: US Senate passes 2027 defense bill authorizing Taiwan war reserve stockpile

The US Senate approved the FY2027 NDAA, creating a Taiwan war reserve stockpile, renaming a security initiative to First Island Chain, labeling China an “Axis of Aggressors,” and expanding US‑Taiwan drone ties.

2 sources. https://clstr.news/cluster/us-senate-passes-2027-defense-bill-authorizing-taiwan-war-reserve-stockpile

### 2026-06-05: United States delays $14 billion Taiwan weapons sale, sparking China concerns

President Trump delayed a $14 billion weapons sale to Taiwan, heightening U.S.-China tensions as Taiwan awaits the equipment.

2 sources. https://clstr.news/cluster/united-states-delays-14-billion-taiwan-weapons-sale-sparking-china-concerns

### 2026-06-05: Taiwan urged to spend smarter on defence as US backs drone investments

Lithuania urges deeper Taiwan security ties while the U.S. advises Taiwan to spend smarter on defence, especially drones, after parliament approved most of a $40 bn request.

7 sources. https://clstr.news/cluster/taiwan-expands-missile-arsenal-amid-us-armssale-pause

### 2026-05-25: U.S. Pauses $14 B Taiwan Arms Sale Citing Iran Conflict

The U.S. has paused a $14 billion arms sale to Taiwan to safeguard munitions for its Iran operation, leaving Taiwan uninformed and sparking diplomatic tension with China.

2 sources. https://clstr.news/cluster/us-pauses-14-b-taiwan-arms-sale-citing-iran-conflict

### 2026-05-22: US postpones $14 billion Taiwan arms sale to free ammunition for Iran operation

The US halted a $14 billion Taiwan arms sale to keep ammo for an Iran operation, delaying the deal until after “Epic Fury,” amid uncertainty over US support for Taiwan.

3 sources. https://clstr.news/cluster/us-postpones-14-billion-taiwan-arms-sale-to-free-ammunition-for-iran-operation

### 2026-05-22: U.S. Halts $14 B Taiwan Arms Deal to Preserve Munitions for Iran Conflict

The U.S. has temporarily paused a $14 billion arms sale to Taiwan to keep enough munitions for its Iran operation, a move that unsettles Taiwan and heightens U.S.–China tensions.

24 sources. https://clstr.news/cluster/united-states-pauses-arms-sales-to-taiwan-to-prioritize-ammunition-for-iran-conflict

### 2026-05-20: China stalls Pentagon under‑secretary’s Beijing trip pending US decision on $14 billion Taiwan arms sale

China delays Pentagon official’s Beijing visit until the US decides on a $14 bn Taiwan arms package.

4 sources. https://clstr.news/cluster/china-stalls-pentagon-undersecretarys-beijing-trip-pending-us-decision-on-14-billion-taiwan-arms-sal

### 2026-05-12: US Senators Push Trump to Approve $14 B Taiwan Arms Deal Ahead of Xi Summit

US senators urge Trump to approve a $14 billion Taiwan arms package before his Xi summit, warning of Beijing aggression.

2 sources. https://clstr.news/cluster/us-senators-push-trump-to-approve-14-b-taiwan-arms-deal-ahead-of-xi-summit

---
Cite as: US-Taiwan arms delays and drone defense developments. CLSTR, https://clstr.news/situations/us-pushes-taiwan-14-b-arms-sale-as-china-delays-pentagon-visit