TAIPEI (Taiwan News) — U.S. President Joe Biden signed the US$858 billion (NT$26.4 trillion) National Defense Authorization Act into law on Friday (Dec. 23), which includes US$2 billion in military loans for Taiwan to bolster its defense against China.
On Dec. 15, the U.S. Senate followed the U.S. House of Representatives in passing 2023 National Defense Authorization Act (NDAA) allocating the coming year's defense budget.
With the passage of the NDAA, the U.S. State Department is authorized to provide Taiwan with up to US$2 billion under the "Foreign Military Finance" (FMF) grant and loan assistance program intended for the procurement of weapons and defense equipment made in the U.S.
The act also authorizes the U.S. president to build a regional contingency stockpile for Taiwan that includes up to US$100 million worth of munitions. It also affords Taiwan the same treatment as major non-NATO allies in receiving the priority of obtaining "excess defense materials" from the U.S.
It also requires the responsible authorities to prioritize and, with no bundled arrangement allowed, expedite the processing of Taiwan's arms purchase requests.
A formal opinion was also written in the act urging the Pentagon to have Taiwan be part of the 2024 Rim of the Pacific (RIMPAC) joint exercises.
In terms of cultural exchanges, the act requires the Secretary of State to establish the "Taiwan Fellowship Act" to provide qualified American citizens, including federal government officials, an opportunity to go to Taiwan for a two-year exchange. Once there, they will, in the first year, study Mandarin, local history, as well as the political climate of Taiwan and the IndoPacific region, followed by another year serving in the Legislative Yuan, government agencies, or private sectors.