View all text of Subchapter I [§ 3351 - § 3357b]
§ 3351. Modernizing Taiwan’s security capabilities to deter and, if necessary, defeat aggression by the People’s Republic of China
(a) Appropriate congressional committees definedIn this section, the term “appropriate congressional committees” means—
(1) the Committee on Foreign Relations of the Senate;
(2) the Committee on Armed Services of the Senate;
(3) the Committee on Appropriations of the Senate;
(4) the Committee on Foreign Affairs of the House of Representatives;
(5) the Committee on Armed Services of the House of Representatives; and
(6) the Committee on Appropriations of the House of Representatives.
(b) Taiwan security programs
(c) PurposeIn addition to the purposes otherwise authorized for Foreign Military Financing programs under the Arms Export Control Act (22 U.S.C. 2751 et seq.), a purpose of the Foreign Military Financing Program should be to provide assistance, including equipment, training, and other support, to build the civilian and defensive military capabilities of Taiwan—
(1) to accelerate the modernization of capabilities that will enable Taiwan to delay, degrade, and deny attempts by People’s Liberation Army forces—
(A) to conduct coercive or grey zone activities;
(B) to blockade Taiwan; or
(C) to secure a lodgment on any islands administered by Taiwan and expand or otherwise use such lodgment to seize control of a population center or other key territory in Taiwan; and
(2) to prevent the People’s Republic of China from decapitating, seizing control of, or otherwise neutralizing or rendering ineffective Taiwan’s civilian and defense leadership.
(d) Regional contingency stockpile
(e) Availability of funds
(1) Annual spending plan
(2) Certification
(A) In general
(B) WaiverThe Secretary of State may waive the certification requirement under subparagraph (A) if the Secretary, in consultation with the Secretary of Defense, certifies to the appropriate congressional committees that for any given year—
(i) Taiwan is unable to increase its defense spending relative to its defense spending in its prior fiscal year due to severe hardship; and
(ii) making available the amounts authorized under subparagraph (A) is in the national interests of the United States.
(3) Remaining funds
(f) Annual report on advancing the defense of Taiwan
(1) Initial report
(2) Matters to be includedEach report required under paragraph (1) shall include—
(A) an assessment of the commitment of Taiwan to implement a military strategy that will deter and, if necessary, defeat military aggression by the People’s Republic of China, including the steps that Taiwan has taken and the steps that Taiwan has not taken towards such implementation;
(B) an assessment of the efforts of Taiwan to acquire and employ within its forces counterintervention capabilities, including—
(i) long-range precision fires;
(ii) integrated air and missile defense systems;
(iii) anti-ship cruise missiles;
(iv) land-attack cruise missiles;
(v) coastal defense;
(vi) anti-armor;
(vii) undersea warfare, including manned and unmanned systems;
(viii) survivable swarming maritime assets;
(ix) manned and unmanned aerial systems;
(x) mining and countermining capabilities;
(xi) intelligence, surveillance, and reconnaissance capabilities;
(xii) command and control systems;
(xiii) defensive cybersecurity capabilities; and
(xiv) any other defense capabilities that the United States determines, including jointly with Taiwan, are crucial to the defense of Taiwan, consistent with the joint consultative mechanism with Taiwan created pursuant to section 3355 of this title;
(C) an evaluation of the balance between conventional and counter intervention capabilities in the defense force of Taiwan as of the date on which the report is submitted;
(D) an assessment of steps taken by Taiwan to enhance the overall readiness of its defense forces, including—
(i) the extent to which Taiwan is requiring and providing regular and relevant training to such forces;
(ii) the extent to which such training is realistic to the security environment that Taiwan faces; and
(iii) the sufficiency of the financial and budgetary resources Taiwan is putting toward readiness of such forces;
(E) an assessment of steps taken by Taiwan to ensure that the Taiwan’s reserve forces and All-Out Defense Mobilization Agency can recruit, train, equip, and mobilize its forces;
(F) an evaluation of—
(i) the severity of manpower shortages in the military of Taiwan, including in the reserve forces;
(ii) the impact of such shortages in the event of a conflict scenario; and
(iii) the efforts made by Taiwan to address such shortages;
(G) an assessment of the efforts made by Taiwan to boost its civilian defenses, including any informational campaigns to raise awareness among the population of Taiwan of the risks Taiwan faces;
(H) an assessment of the efforts made by Taiwan to secure its critical infrastructure, including in transportation, telecommunications networks, satellite communications, and energy;
(I) an assessment of the efforts made by Taiwan to enhance its cybersecurity, including the security and survivability of official civilian and military networks;
(J) an assessment of the efforts made by Taiwan to improve the image and prestige of its defense forces among the population of Taiwan;
(K) an assessment of any significant gaps in any of the matters described in subparagraphs (A) through (J) with respect to which the United States assesses that additional action is needed;
(L) a description of cooperative efforts between the United States and Taiwan on the matters described in subparagraphs (A) through (K);
(M) a description of any challenge in Taiwan to—
(i) implement the matters described in subparagraphs (A) through (J); or
(ii) United States support or engagement with regard to such matters;
(N) a description of actions taken to establish or expand a comprehensive training program with Taiwan pursuant to section 3353 of this title;
(O) a description of actions taken to establish a joint consultative mechanism with appropriate officials of Taiwan, and the multi-year plan to provide for the acquisition of appropriate defensive capabilities by Taiwan, pursuant to section 3355 of this title; and
(P) the list compiled pursuant to section 3356(a) of this title, and a description of actions taken pursuant to sections 3356(b) of this title and 3356(c) of this title.
(3) Subsequent reports
(4) Form
(5) Sharing of summary
(g) Foreign military financing loan and loan guarantee authority
(1) Direct loans
(A) In general
(B) Maximum obligations
(C) Source of funds
(i) Defined termIn this subparagraph, the term “cost”—(I) has the meaning given such term in section 661a(5) of title 2;(II) shall include the cost of modifying a loan authorized under subparagraph (A); and(III) may include the costs of selling, reducing, or cancelling any amounts owed to the United States or to any agency of the United States.
(ii) In general
(D) Fees authorized
(i) In general
(ii) Limitation on fee payments
(E) Repayment
(F) Interest
(i) In general
(ii) Treatment of loan amounts used to pay interest
(2) Loan guarantees
(A) In general
(B) Maximum amountsA loan guarantee authorized under subparagraph (A)—
(i) may not guarantee a loan that exceeds $2,000,000,000; and
(ii) may not exceed 80 percent of the loan principal with respect to any single borrower.
(C) SubordinationAny loan guaranteed pursuant to subparagraph (A) may not be subordinated to—
(i) another debt contracted by the borrower; or
(ii) any other claims against the borrower in the case of default.
(D) Repayment
(E) Fees
(F) Treatments of loan guarantees
(3) Notification requirement
(h) Authorization of appropriations
(1) Authorization of appropriations
(2) Training and education
(3) Direct commercial contracting
(4) Procurement in Taiwan
(i) Sunset provision
(Pub. L. 117–263, div. E, title LV, § 5502, Dec. 23, 2022, 136 Stat. 3292; Pub. L. 118–31, div. A, title XIII, § 1308(a), Dec. 22, 2023, 137 Stat. 494.)