Taiwan Allies Fund Act

Summary#

This bill, the Taiwan Allies Fund Act, authorizes money to help countries support Taiwan's international role and to resist pressure from the People's Republic of China. It directs $40,000,000 from the Countering PRC Influence Fund for each of fiscal years 2026, 2027, and 2028 to support these efforts. Eligible countries must either have official ties with Taiwan or have meaningfully strengthened unofficial ties, have faced coercion or pressure from the People's Republic of China for those ties, and lack the capacity to respond without U.S. support.

The funds may be used for: health initiatives that offer alternatives to the "Health Silk Road"; building the capacity of civil society and media to counter PRC influence and propaganda; diversifying supply chains away from the PRC; providing alternatives to PRC development finance; advancing Taiwan's participation in international organizations; and working with the private sector to offer non-PRC information and communications technology options. No country may receive more than $5,000,000 in a fiscal year from this authorization. The Secretary of State, in consultation with USAID, the American Institute in Taiwan, and other agencies, will coordinate the work. Funds may be treated as foreign assistance and may be merged with other foreign assistance accounts and will remain available until expended. The Secretary must report to the relevant congressional committees within one year of enactment and annually for two years with details on funding, goals, success assessments, and any funding Taiwan provides.

What it means for you#

  • For governments that meet the bill's criteria: they could receive U.S. support for diplomacy, health projects, civil society, supply chain projects, and technology alternatives.
  • For Taiwan: the bill directs U.S. coordination with Taiwan parties and asks Taiwan to contribute commensurate assistance to partner countries.
  • For U.S. agencies: the State Department and USAID must lead coordination and reporting.
  • For NGOs and private companies: they may be eligible partners for capacity building, health, supply chain, or ICT projects described in the bill.

Expenses#

  • The bill authorizes $40,000,000 for each of fiscal years 2026, 2027, and 2028 from the Countering PRC Influence Fund.
  • A single eligible country may not receive more than $5,000,000 in a fiscal year under this authorization.
  • The bill allows these amounts to be treated as foreign assistance and transferred or merged with other Foreign Assistance Act funds.
  • No other cost or budgetary detail is in the bill text.

Proponents' View#

The bill's findings and "sense of Congress" explain why sponsors support it: Taiwan is described as a free and prosperous democracy that faces diplomatic isolation pressures from the People's Republic of China. Supporters want to preserve and expand Taiwan's diplomatic and unofficial ties, promote Taiwan's participation in international organizations, help partner countries resist PRC coercion, and advance economic development in countries that support democratic partners like Taiwan.

Opponents' View#

No publicly available information.