This bill establishes a program allowing the President to transfer military equipment and supplies from the U.S. Department of Defense inventory to Taiwan. The transfers would include humanitarian and medical supplies, weapons, ammunition, missiles, and other munitions, but only items that are currently obsolete or surplus and already stored in Taiwan as reserve stocks. Before making any transfer, the President must notify Congress at least 30 days in advance, identifying what items will be transferred and what concessions the U.S. will receive in return. The Secretary of State must submit an initial report to Congress within one year of the bill's enactment, and annually thereafter, detailing the items transferred, concessions received, and delivery timelines. The bill affects the U.S. military's surplus equipment management and Taiwan's defense capabilities, though no specific funding amounts or overall quantity limits are specified in the legislation.