Taiwan Allies Fund Act

This bill creates a Taiwan Allies Fund to help countries that support or deepen ties with Taiwan but face pressure from the People’s Republic of China. It aims to keep and grow Taiwan’s connections worldwide and help Taiwan take part in international groups. The plan would set aside $40 million each year for 2026 through 2028 from an existing fund that counters PRC influence, with no more than $5 million going to any one country per year . Money could support health programs as alternatives to China’s “Health Silk Road,” strengthen local media and community groups to push back on propaganda, shift supply chains away from China, offer alternatives to China’s development loans, help Taiwan join international meetings, and work with companies to provide U.S. or allied tech options instead of PRC systems.

The State Department would run the program with USAID and coordinate with Taiwan. It would report to Congress one year after the law takes effect and then once a year for two more years, detailing how funds were used, what results were achieved, and whether Taiwan helped share the costs. Congress also urges the U.S. to speak up for Taiwan on the world stage and to grow both official and unofficial ties with other countries.

• Who is affected: Countries that have official ties with Taiwan or have strengthened unofficial ties, have been pressured by the PRC because of those ties, and lack the resources to respond on their own.
• What changes: Up to $40 million a year in support for projects like health programs, civil society and media support, supply chain diversification, non-PRC development financing options, help with international participation, and non-PRC tech infrastructure; capped at $5 million per country per year; oversight and yearly reports required .
• When: Fiscal years 2026, 2027, and 2028; first report due one year after enactment, then annually for two more years .