Taiwan's parliament is fighting over how to fund military drones, a clash that could slow the island's defense buildup and hurt its budding drone industry.

• The cabinet wants a special budget to buy drones and unmanned boats fast; opposition parties want it funded through the normal yearly budget instead.
• Lai Ching-te says the opposition versions cut out the three main military drone purchases the armed forces asked for.
• Opposition drafts would also hand control of the money to the economics ministry rather than the defense ministry.
• Lai warns yearly budget limits could squeeze education and welfare spending and leave drone makers without steady orders.
• Taiwan's defense budget will top NT$1 trillion for the first time next year, with money going to AI and unmanned systems.

Outlook: Legislative speaker Han Kuo-yu is pushing to pass the bill this week, so a compromise version could clear the floor within days.