The Taiwan Allies Fund Act establishes a $40 million annual fund for fiscal years 2026-2028 to help Taiwan strengthen its international presence and support countries that maintain diplomatic ties with Taiwan or have faced pressure from China for doing so. The bill directs these funds toward activities like promoting health initiatives as alternatives to Chinese programs, strengthening civil society and media capacity to counter Chinese influence, diversifying supply chains away from China, and advancing Taiwan's participation in international organizations. Eligible countries are those with official or strengthened unofficial relations with Taiwan that lack the economic or political resources to resist Chinese coercion on their own, with a $5 million annual cap per country. The State Department will implement the program in coordination with relevant U.S. agencies and Taiwan's government, and must submit annual reports to Congress detailing how funds are spent and whether Taiwan is providing matching contributions.
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