Taiwan Lawmakers Approve NT$240 Billion Drone Budget on August 27, 2026

Key facts

• Taiwan's lawmakers approved a NT$240 billion ($7.6 billion) budget for locally made drones on August 27, 2026.
• The approved proposal was backed by the Kuomintang (KMT) and Taiwan People's Party (TPP) after President Lai Ching-te's government plan was rejected.
• The government had proposed NT$210 billion ($6.6 billion) in a special budget for Taiwan-made unmanned vehicles over more than five years.
• The opposition-backed proposal allocates NT$240 billion over six years and will be included in the annual budget.
• The KMT initially insisted on an annual spending cap of NT$40 billion but later agreed to flexibility and accepted defence ministry oversight of drone procurement.
• Cabinet spokesperson Michelle Lee said the government would make every possible effort to secure funding and that national security cannot afford delays.
• KMT lawmaker Hsu Chiao-hsin said Taiwan must encourage localisation and domestic production and support manufacturers with non-Chinese supply chains and cybersecurity.
• US Republican lawmaker Young Kim said during a visit to Taipei that time was short and Taiwan needed to buy and build drones at a huge scale.
• Taiwan's government has earmarked a record NT$1.1 trillion in defence spending for 2027, accounting for more than three percent of GDP.