The Taiwan Allies Fund Act authorizes \$40 million annually for 2026-2028 to support Taiwan's international presence and counter Chinese influence in countries that maintain ties with Taiwan.
Chris Van Hollen
Senator
MD
The Taiwan Allies Fund Act aims to bolster Taiwan's international standing by authorizing $40 million annually for fiscal years 2026-2028 to counter Chinese influence and support countries that maintain or strengthen ties with Taiwan. These funds will support initiatives such as health programs, civil society capacity building, supply chain diversification, and alternatives to Chinese development assistance. The Act requires the Secretary of State to coordinate these efforts and report annually to Congress on the activities and their success. It encourages collaboration with Taiwan to ensure commensurate contributions to recipient countries.
New Bill Proposes $40M Annually to Bolster Taiwan's Allies Against Chinese Pressure
This legislation, the Taiwan Allies Fund Act, sets up a dedicated pot of money – specifically, $40 million per year for fiscal years 2026 through 2028 – drawn from the existing Countering PRC Influence Fund. The core idea is to financially back countries that maintain diplomatic ties with Taiwan or have strengthened unofficial relations, especially if they're feeling heat from the People's Republic of China (PRC) for doing so. It acknowledges that China has been actively working to isolate Taiwan internationally.
Putting Money Where the Strategy Is: The Fund's Mechanics
So, how does this $120 million total ($40M x 3 years) actually work? Section 4 lays out the ground rules. The cash is earmarked for nations that meet specific criteria: they need to have formal or strengthening informal ties with Taiwan, be facing documented pressure from the PRC because of that relationship, and lack the resources to push back effectively on their own. Think smaller nations potentially being squeezed economically or politically. There's a cap, though: no single country can receive more than $5 million in any given fiscal year.
What Does the Cash Actually Buy?
The bill lists several ways these funds can be used to support eligible countries. It's not just a blank check. The money is intended for tangible projects like:
- Health initiatives: Offering alternatives to China's 'Health Silk Road' programs.
- Strengthening civil society: Building up local media and non-profits to resist Chinese propaganda.
- Economic diversification: Helping countries shift their supply chains away from dependence on China.
- Development aid: Providing financing options that aren't tied to Beijing.
- Boosting Taiwan's profile: Supporting efforts for Taiwan to participate in international groups.
- Tech alternatives: Working with private companies to offer information and communication tech that isn't sourced from China.
Essentially, it's about providing practical alternatives and strengthening resilience against PRC influence in these allied nations.
Keeping Tabs: Coordination and Accountability
This isn't just about sending money; there's a structure for oversight. The Secretary of State, working with USAID, the American Institute in Taiwan (our de facto embassy there), and other agencies, is tasked with coordinating these efforts. Interestingly, the bill requires the Secretary to work with Taiwan to ensure they also chip in 'commensurate assistance' to the recipient countries – it's framed as a partnership. To ensure accountability, the Secretary of State has to report back to Congress annually for the first two years. This report needs to detail how much money went where, what the goals were, whether those goals were met, and how much Taiwan contributed.