On April 24, 2025, amid geopolitical shifts—including changes to U.S. tariff policy—the Executive Yuan approved a draft bill for a special act to strengthen Taiwan's economic, social and homeland security resilience in response to international developments. After deliberation by the Legislative Yuan, the bill was renamed as a special act to strengthen Taiwan's economic, social, livelihood and security resilience, and was promulgated on August 1.
To promptly address the needs of various sectors while Taiwan-U.S. tariff talks continue, draft amendments to the special act were approved by the Executive Yuan on August 14, and passed their third and final reading by the Legislative Yuan on August 29. These amendments raise the special budget ceiling to NT$570 billion (approximately US$18.6 billion), an increase of NT$25 billion (approx. US$814.2 million). This additional funding is allocated toward fortifying support for industries, workers and agriculture impacted by international trade developments; enhancing support for vulnerable populations; strengthening social care services; and covering additional expenses related to the distribution of universal cash payments.
Main points of the act
■ Supporting industries: Provide companies with greater financial support through measures such as reduced interest rates on trade financing, preferential export insurance premiums, enhanced guarantees on export loans, and expanded loan support for micro-, small and medium-sized enterprises. Boost industrial competitiveness by offering guidance and subsidies to help businesses upgrade their technologies and replace old equipment. Facilitate expansion into diversified international markets by assisting companies in overseas marketing and order acquisition. Strengthen the agricultural sector through measures such as increasing interest subsidies on agricultural loans, and accelerating value-added transformations.
■ Stabilizing employment: Support companies in maintaining stable hiring practices and enhancing workforce skills training. Ensure secure employment for workers and facilitate young people's entry into the workforce.
■ Safeguarding livelihoods: Allocate funding for the National Health Insurance Fund and Labor Insurance Fund to ease their financial pressures and help stabilize consumer prices and people's livelihoods. Expand support for disadvantaged groups and strengthen social care services. Invest in talent at the higher education level. Distribute a one-time cash payment of NT$10,000 (approx. US$326) per person to bolster consumer resilience, stimulate domestic demand and improve economic outcomes.
■ Enhancing national resilience: Strengthen homeland defense capabilities by improving and expanding coastal patrols, unmanned vehicle systems and other critical defense assets. Upgrade cybersecurity capabilities by improving the operational environment and infrastructure for information and communications systems.