Taiwan’s cabinet has proposed a 2026 defense budget of NT$949.5 billion (about US$31.3 billion), a 22.9% increase on this year and equivalent to 3.32% of gross domestic product. The plan would push military spending above the 3% threshold for the first time since 2009 and, following a NATO-style methodology, folds coast-guard operations and veterans’ benefits into the headline figure. Premier Cho Jung-tai said the larger outlay shows Taipei’s “determination and ability” to safeguard sovereignty as Beijing intensifies air and naval activities around the island. The move also addresses U.S. pressure—reinforced by President Donald Trump—to shoulder more of the cost of its own defense. Special appropriations within the package earmark funds for new fighter jets, naval defenses and other equipment upgrades. To cover the higher military bill and other spending, the government intends to boost overall borrowing by NT$400 billion next year. The budget must still clear the Legislative Yuan, where an opposition bloc skeptical of rapid increases previously pared back some defense allocations. If enacted, Taiwan’s defense burden would exceed that of most NATO members and mark its steepest annual rise in more than a decade.