Taiwan’s legislature kicks off new session, prioritizing presidential address and special defense budget

Taiwan’s Legislative Yuan began its new session on Monday (Feb. 24), marking a critical moment in the island's political landscape amid ongoing confrontation between the ruling and opposition camps.

The first-ever Presidential State of the Nation report to the Legislature?

On Feb. 23, President Lai Ching-te (賴清德) hosted a Lunar New Year tea reception at the Presidential Office for the heads of the five branches of government.

Lai emphasized the importance of division of labor and cooperation among the branches under the constitutional system, saying they must jointly bear responsibility for the nation. He stated that in the face of domestic and international challenges, he hopes in the new year to transform misunderstanding into understanding and division into unity, taking the first step toward cooperation for the country and its people.

According to NOWNEWS, Legislative Yuan President Han Kuo-yu (韓國瑜) told reporters after the event that he would invite Lai to deliver a State of the Nation address to the Legislative Yuan. Both ruling and opposition parties, he said, would adopt a “group questioning and group response” format to accord the president appropriate courtesy. 

Han pointed out that many bills and budget proposals are currently pending review in the Legislative Yuan, including the central government’s general budget and a special defense procurement budget. He suggested that when encountering difficulties, the president should respond with patience and wisdom and proactively communicate with the legislature to facilitate smooth deliberation.

In a Facebook post, Lai confirmed that Han had invited him to deliver a State of the Nation report at the Legislative Yuan. 

Lai said he would be happy to attend as long as constitutional procedures are followed. He stated that the Constitutional Court previously ruled that certain amendments related to legislative powers were partially unconstitutional and partially constitutional, and said he respects the Court’s decision.

In 2024, the Legislative Yuan amended the law to require the president to regularly deliver State of the Nation reports and accept immediate questioning. The Constitutional Court ruled that these mandatory obligations and questioning requirements were unconstitutional and invalid, on the grounds that they violated the principle of separation of powers and that the president is not accountable to the Legislative Yuan.

The proposal to adopt a “group questioning and group response” format has sparked discussion across Taiwan’s political spectrum.

According to NOWNEWS, Democratic Progressive Party (DPP) caucus chief secretary Chung Chia-pin (鍾佳濱) stated, “Under constitutional provisions, I believe the president is very willing to exchange views on national affairs with different party caucuses and individual legislators at the Legislative Yuan.”

Fu Kun-chi (傅崐萁), convener of the Kuomintang (KMT) caucus, said that since Lai is willing to go to the legislature to deliver a State of the Nation report and accept legislative oversight and questioning, the caucus respects that decision, per NOWNEWS.

If Lai proceeds, he would become the first president in the history of the Republic of China (official name for Taiwan) to deliver such an address to the Legislative Yuan.

Special defense budget

A proposed NT$1.25 trillion (approximately US$40 billion) special defense budget, which has been repeatedly blocked by opposition parties and has been unable to enter committee review, may see new momentum in this session.

To strengthen Taiwan’s defense, the Executive Yuan proposed an eight-year special defense budget with a provisional cap of NT$1.25 trillion. The proposal has been jointly blocked by opposition parties ten times in the Legislative Yuan and has yet to enter the review process. 

According to CNA, on Feb. 12, 34 bipartisan US senators and representatives sent a letter to Han, expressing concern that the legislature might approve only part of the defense-strengthening budget. 

They urged support for funding sufficient to address current circumstances and clearly demonstrate Taiwan’s determination for self-defense. The US lawmakers also pledged to address delays in arms deliveries.

On Feb. 15, Han and Legislative Yuan Vice President Chiang Chi-chen (江啟臣) issued a joint statement saying that once the legislature reconvenes, bills related to the special defense budget will be given top priority in deliberations.

On Feb. 24, Han convened a cross-party consultation. All party caucuses agreed to include the Executive Yuan’s version of the special defense act and related special bills (yet to be proposed) on the March 6 plenary agenda for reporting, and to refer them for joint review by the Foreign Affairs and National Defense Committee and the Finance Committee, along with the Taiwan People’s Party caucus version of the special defense act. No motions for reconsideration will be raised.

According to the legislative schedule, barring unforeseen developments, the NT$1.25 trillion special defense budget could clear the legislature before June.

Taiwan–US Agreement on Reciprocal Trade

In response to reciprocal tariffs initiated by US President Donald Trump, Taiwan and the United States held multiple rounds of negotiations. On Feb. 13, 2026, both sides signed the “Agreement on Reciprocal Trade” (ART) and a “Taiwan–US Investment MOU.” 

Under the agreement, reciprocal tariffs on Taiwan will be reduced to 15% and will not be stacked on top of the existing Most-Favored-Nation (MFN) tariff rate. 

Taiwan will simultaneously lower tariffs on most US goods and has pledged to purchase oil, natural gas, and power equipment between 2025 and 2029, as well as civilian aircraft. Taiwan also committed to investing US$500 billion in the United States.

On Feb. 20, the US Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs.

Trump subsequently invoked Section 122 of the Trade Act, announcing a 10% tariff on global imports, later raising it to 15%, effective Feb. 24.

On Feb. 21, the KMT caucus issued a press release calling on the government to immediately restart negotiations with the US in response to changes in the tariff situation.

At a press conference on Feb. 24, Vice Premier Cheng Li-chun (鄭麗君) stated that Taiwan is actively engaging with the US side to ensure that Taiwan secures preferential treatment. After confirming with the US, the government will submit the ART, the investment MOU, and an industrial impact assessment to the legislature for review.

Whether the new legislative session can smoothly review and deliberate the ART and the Taiwan–US Investment MOU will become another focal point of political contestation between the ruling and opposition parties in Taiwan.