Taiwan's opposition-controlled Legislature has slashed the DPP government's 2026 budget, setting up a bitter fight over spending and presidential funds.

• The KMT and Taiwan People's Party, who hold a majority, pushed through NT$48 billion in cuts, about 1.7% of the total budget.
• The opposition calls the cuts modest "goodwill," noting 98% of the budget still passed and the government can run normally.
• The DPP-led Cabinet calls the cuts "irrational," warning they could cripple operations and stall human rights work.
• Cuts hit President Lai's confidential state affairs fund, transitional justice and party-assets bodies, and government messaging budgets.
• The Cabinet warns that gutting policy-promotion funds leaves room for disinformation to spread and puts contract workers' pay at risk.

Outlook: Expect the budget clash to deepen the standoff between the DPP government and the opposition majority, with Lai's stalled bills and frozen funds the next flashpoint.