Taiwan plans to increase its defense budget for 2026 by approximately 23%, raising it to a record $31.3 billion, which represents 3.32% of its gross domestic product (GDP). This marks the first time since 2009 that Taiwan's defense spending has surpassed the 3% GDP threshold. The budget increase is driven by heightened military pressure from China and calls from the United States for Taiwan to bolster its defense capabilities. Taiwan's defense budget now also includes allocations for the coast guard and veterans, following a model similar to NATO. Taiwanese President Lai Ching-te has set a new target to further raise defense spending to 5% of GDP by 2030, emphasizing the government's commitment to self-defense amid ongoing regional tensions. The 2026 defense budget proposal still requires parliamentary approval.