HR2559-119

What This Bill Does

The Taiwan Allies Fund Act authorizes $40 million for each of fiscal years 2026, 2027, and 2028 from amounts made available under the Countering PRC Influence Fund. The money supports Taiwan's international space in countries that maintain official relations with Taiwan or have meaningfully strengthened unofficial relations, have faced coercion or pressure from the People's Republic of China because of those relations, and lack the economic or political capability to respond effectively without U.S. support. Eligible activities include health alternatives to the Health Silk Road, civil society and media resilience against PRC influence, supply-chain diversification away from China, alternatives to PRC development financing, Taiwan's participation in international fora, and U.S. or allied alternatives to PRC information and communications infrastructure. A country may not receive more than $5 million in any fiscal year. The Secretary of State, USAID Administrator, American Institute in Taiwan Director, and relevant agencies coordinate implementation, may use Foreign Assistance Act authorities, and must report annually for two years on goals, funding, results, and Taiwan's commensurate contributions.

Who Benefits and How

Countries facing PRC coercion over Taiwan relations benefit from U.S. assistance for health, civil society, media, supply chains, development finance, international participation, and communications infrastructure. Taiwan benefits because the fund supports official allies, strengthened unofficial partners, and Taiwan's meaningful participation in international fora. Civil society organizations in eligible countries benefit from capacity-building against PRC influence and propaganda. U.S. allied infrastructure providers benefit from support for alternatives to PRC information and communications technology.

Who Bears the Burden and How

The State Department must coordinate the fund, select eligible countries, manage transfers, track goals, and report annually to foreign affairs committees. USAID must help carry out foreign assistance activities and coordinate with the American Institute in Taiwan. Countries receiving funds face a $5 million annual country cap and performance reporting on funded activities. The People's Republic of China bears strategic burden because the program counters its diplomatic pressure and development-finance influence.

Key Provisions

• Authorizes $40 million per fiscal year for 2026, 2027, and 2028 from the Countering PRC Influence Fund.
• Limits use to countries supporting Taiwan that face PRC coercion and lack capacity to respond effectively without U.S. support.
• Funds health, civil society, media, supply-chain, development-finance, international-fora, and communications-infrastructure alternatives to PRC influence.
• Caps any country at $5 million per fiscal year and requires annual reports for two years on funding, goals, success, and Taiwan contributions.