The governing and opposition camps are locked in a constitutional fight over cash subsidies for children, leaving families with children facing policy uncertainty and the government facing a fresh round of confrontation.

• In July the Legislative Yuan passed the opposition's version of the Act on Growth and Future Accounts for Children and Youth in Taiwan on its third reading, allowing those aged 0 to 18 to receive up to NT$1.14 million.
• Premier Cho Jung-tai decided not to countersign the act, arguing that it infringes on the Executive Yuan's power to draw up the budget and could also widen the wealth gap.
• Lai Ching-te issued a directive stating that the Legislative Yuan had violated the separation of powers, stressing that the government's own version — a monthly NT$5,000 growth allowance for those aged 0 to 18 — has already been written into next year's general budget.
• The point of contention is that the opposition's version allows families and employers to top up the savings themselves, so wealthier households can save more and receive more, with compound interest widening the gap.
• Taipei Mayor Chiang Wan-an and other opposition figures have already floated a no-confidence vote, though the KMT and the TPP remain divided internally over whether to act.

Outlook: The act is unlikely to take effect any time soon, and the battle will shift to a constitutional interpretation, the fight over next year's budget, and possibly a no-confidence motion.