Taiwan Legislature Urges Budget Talks Amid KMT Deadlock

Legislative Speaker Han Kuo-yu scheduled a party caucus meeting for April 15, 2026, to negotiate the 2026 general budget and a special defense budget in Taiwan. The negotiations follow a period of intense legislative deadlock and a high-profile meeting between the opposition Kuomintang (KMT) and the government of the People’s Republic of China.

The special defense budget currently under consideration is the version proposed by the ruling Democratic Progressive Party (DPP). Previous attempts to negotiate this budget failed, including a meeting chaired by DPP lawmaker Chen Kuan-ting that was boycotted by the KMT.

Budget Deadlock and Government Impact

The 2026 general budget has been stalled since September 2025. The opposition-controlled Legislature, consisting of the KMT and the Taiwan People’s Party (TPP), has blocked review of the proposal. On January 2, 2026, the opposition rejected a DPP motion to review the budget by a vote of 56-46.

The deadlock began after the Cabinet failed to allocate funds for legislation passed in June 2025 regarding pay raises for active-duty military personnel and a December 2025 bill intended to roll back pension cuts for public school teachers and civil servants. The DPP administration declined to implement these bills, citing concerns over fiscal sustainability and constitutionality.

DPP Legislative Caucus Secretary-General Chuang Jui-hsiung stated that the deadlock has delayed critical government policies. Specifically, the DPP noted that essential flood prevention projects cannot begin without the approval of the 2026 budget, which is urgent as the monsoon and typhoon season approaches.

The Sports Ministry has also been affected, as new initiatives included in the 2026 budget cannot proceed until the funds are approved. To mitigate the impact, the opposition has authorized the government to use funds for 38 existing programs, including transportation subsidies and flood prevention.

Defense Spending and Cross-Strait Relations

The special defense budget, valued at NT$1.25 trillion, has been blocked ten times by the opposition coalition. This paralysis has occurred alongside shifting political dynamics between Taipei and Beijing.

KMT Chair Cheng Li-wen recently held a closed-door meeting in Beijing with Xi Jinping, marking the first leader-level meeting between the CCP and KMT in nearly a decade. During this meeting, Cheng echoed the rejuvenation of the Chinese nation framing used by Xi. In response, President Lai Ching-te warned that compromise with authoritarianism would damage Taiwan’s sovereignty.

The timing of the Xi-Cheng meeting coincided with the peak of Taiwan’s budgetary and constitutional paralysis. Analysts have noted that the repeated blocking of the special defense budget may erode confidence in Washington regarding Taipei’s resolve.

Political Reactions

DPP Legislator Fan Yun suggested that the KMT’s previous boycott of budget meetings was intended to raise the profile of KMT Chair Cheng Li-wen, who had not yet returned from China at the time of those meetings. Despite the tensions, DPP Legislator Chen Pei-yu expressed cautious optimism regarding the talks scheduled for April 15.

The political rift has also extended to diplomatic motions. On January 2, 2026, the opposition parties rejected a DPP proposed agenda that included a motion to condemn large-scale military drills conducted by China. The Cabinet and the National Security Council expressed regret that the condemnation motion was not considered.