Taiwan’s Cabinet has proposed a 2026 defence budget of NT$949.5 billion (about US$31 billion), lifting military outlays by roughly 23% from this year and taking spending to 3.32% of gross domestic product—its first time above the 3% threshold since 2009. The plan folds coast-guard operations and veterans’ benefits into the headline figure, following a NATO-style accounting method, and earmarks special funds for new fighter jets and naval defences. Premier Cho Jung-tai said the increase demonstrates Taipei’s “concrete determination” to safeguard national sovereignty amid intensifying Chinese military activity and to answer U.S. pressure, notably from President Donald Trump, for the island to shoulder more of its own defence. To finance broader government needs, the administration also plans to raise NT$400 billion in additional borrowing next year. The draft budget will be sent to a legislature where the opposition holds a slim majority, leaving the final totals subject to negotiation.