Taiwan Allies Fund Act

S 1216, the Taiwan Allies Fund Act, authorizes $40 million annually (2026-2028) to support countries maintaining or strengthening unofficial relations with Taiwan amid Chinese diplomatic pressure. It directly aids nations facing economic or diplomatic coercion from China due to their ties with Taiwan, such as those that have preserved or deepened unofficial engagement. Funds may support health initiatives, civil society resilience against Chinese propaganda, supply chain diversification, alternatives to Chinese development aid, and Taiwan’s participation in international organizations. The bill limits funding to $5 million per country yearly and requires annual reports on program effectiveness.