Lai Ching-te announced a $40 billion increase in Taiwan’s defense spending, with a new military budget proposal for 2026 set at NT$949.5 billion (approximately $30.25 billion), surpassing 3% of GDP for the first time since 2009.The plan draws on the principles of the Taiwan Relations Act and Ronald Reagan’s Six Assurances, with Lai also expressing gratitude to Donald Trump and emphasizing Taiwan’s commitment to democracy and self-defense amid growing pressure from Beijing.