Taiwan Allies Fund Act

HR 2559, the Taiwan Allies Fund Act, authorizes $40 million annually (2026-2028) from existing foreign aid funds to support countries maintaining or strengthening unofficial ties with Taiwan, particularly those facing economic or diplomatic pressure from China. The bill directs funds to help eligible countries diversify supply chains, counter Chinese propaganda, develop health initiatives as alternatives to China's "Health Silk Road," and advance Taiwan's participation in international organizations. Countries receiving funds cannot get more than $5 million per year, and the State Department must coordinate with Taiwan and report annually on fund usage and effectiveness. This is a targeted financial assistance program, not a policy change affecting Taiwan's status or U.S. diplomatic recognition.