Taiwan has passed a US$25 billion special defense budget, a significant reduction from President Lai Ching-te’s original US$40 billion proposal. The compromise bill excludes funding for key domestic programs, including the "T-Dome" missile defense system and drone procurement, shifting these costs to the regular annual budget. While seen as a breakthrough after months of deadlock, the cuts have sparked protests and raised concerns in Washington. Defense analysts warn that excluding these integrated systems could impact national security.