A US government funding bill for fiscal 2023 that includes provisions to authorize US$2 billion in loans to Taiwan, but not grants, to buy weapons on Friday cleared the US Congress following a vote in the House of Representatives.
The US$1.65 trillion Omnibus Consolidated Appropriations Act, covering funding for the US government, was approved by the House in a 225-201 vote, with one abstention.
The bill, which cleared the US Senate the previous day and now awaits US President Joe Biden’s signature to take effect, would provide a record US$858 billion in defense funding for the US — a 10 percent increase of the funding in fiscal 2022 — and US$772 billion in non-defense funding.
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The bill would allow Washington to provide up to US$2 billion in direct loans to Taiwan under the Foreign Military Financing Program.
Taipei would be required to pay the debt within 12 years.
However, the bill does not include provisions for US$10 billion in grants — US$2 billion per year over the next five years — for Taiwan to buy US-made weapons, as was mentioned in the National Defense Authorization Act (NDAA) for fiscal 2023, which was signed into law by Biden earlier on Friday.
Despite enactment of the NDAA, grants and loans must still be proposed through appropriation bills and approved by the US Congress before Taiwan can receive them. Even though the NDAA includes provision for grants, US law stipulates that funding cannot be provided if it is not included in an appropriations act.
The appropriation bill would also authorize funding to support a fellowship program that offers opportunities for US federal employees to live and work in Taiwan for up to two years.
The NDAA authorizes establishment of a regional contingency stockpile for Taiwan using excess defense articles.
The NDAA mandates that the US Department of State and Department of Defense prioritize and expedite processing of requests from Taiwan for weapons under the Foreign Military Sales program.
It says that they must not delay processing of requests for bundling purposes.
In addition, the NDAA includes a nonbinding provision stating Taiwanese naval forces should be included in the Rim of the Pacific exercises, as appropriate, in 2024, but does not require the US administration to invite Taiwan to join the drills.
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