22 U.S.C. § 3351 — Modernizing Taiwan’s security capabilities to deter and, if necessary, defeat aggression by the People’s Republic of China
submitted 4 years ago by Pub. L. 117-263 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 2,332 words · no verdicts yet
This section directs the Secretary of State, working with the Secretary of Defense, to strengthen the United States–Taiwan defense relationship and Taiwan’s defensive capabilities. It authorizes grants, loans, loan guarantees, training, reports, and related funding, subject to the stated limits and dates.
(a) “Appropriate congressional committees” means the Senate Foreign Relations, Armed Services, and Appropriations Committees, and the House Foreign Affairs, Armed Services, and Appropriations Committees.
(b) The Secretary of State, consulting the Secretary of Defense, must use this section’s authorities to strengthen the United States–Taiwan defense relationship and speed the modernization of Taiwan’s defense capabilities, consistently with the Taiwan Relations Act.
(c) Besides the purposes already allowed for Foreign Military Financing under the Arms Export Control Act, that program should provide Taiwan equipment, training, and other support to build civilian and defensive military capabilities. These capabilities should help Taiwan modernize so it can delay, weaken, and stop People’s Liberation Army forces from conducting coercive or “grey zone” activities, blockading Taiwan, or taking and expanding a foothold on Taiwan-administered islands to seize a population center or other key territory. They should also prevent the People’s Republic of China from removing, taking control of, neutralizing, or making ineffective Taiwan’s civilian and defense leadership.
(d) Of the amounts authorized under subsection (h), no more than $100 million may be used in each fiscal year from 2023 through 2032 to maintain a regional contingency stockpile, if one is established under section 3352 of this title, in accordance with section 2321h of this title.
(e)(1) By March 1, 2023, and every year afterward, the Secretary of State, coordinating with the Secretary of Defense, must give the appropriate congressional committees a plan explaining how the amounts authorized under subsection (h), if available, would achieve subsection (c)’s purpose.
(e)(2)(A) Amounts authorized under subsection (h) may be made available for a fiscal year after the Secretary of State, coordinating with the Secretary of Defense, certifies no later than one year after December 22, 2023, and at least yearly thereafter, to the appropriate committees of Congress that Taiwan increased its defense spending over the prior fiscal year. That spending must include support for an asymmetric strategy. The comparison excludes personnel accounts, except military training and education and funding connected to the All-Out Defense Mobilization Agency.
(e)(2)(B) The Secretary of State may waive that certification if, after consulting the Secretary of Defense, the Secretary certifies that for the year Taiwan cannot increase its defense spending because of severe hardship and that making the authorized amounts available is in the national interests of the United States.
(e)(3) Amounts authorized for a fiscal year that are not obligated and spent in that year must be added to the amount usable for Foreign Military Financing for Taiwan in the next fiscal year.
(f)(1) At the same time as the first certification under subsection (e)(2), the Secretaries of State and Defense must jointly report to the appropriate committees on steps taken to improve the United States–Taiwan defense relationship and modernize Taiwan’s defense capabilities.
(f)(2) Each report must assess Taiwan’s commitment and progress toward a strategy to deter and, if necessary, defeat aggression by the People’s Republic of China. It must assess Taiwan’s efforts to obtain and use counterintervention capabilities: long-range precision fires; integrated air and missile defense; anti-ship and land-attack cruise missiles; coastal defense; anti-armor; manned and unmanned undersea warfare; survivable swarming maritime assets; manned and unmanned aerial systems; mining and countermining; intelligence, surveillance, and reconnaissance; command and control; defensive cybersecurity; and other capabilities the United States determines, including jointly with Taiwan, are crucial to Taiwan’s defense under the joint mechanism created by section 3355. The report must evaluate the balance between conventional and counterintervention capabilities; readiness and the regularity, relevance, and realism of training and the resources devoted to readiness; the ability of Taiwan’s reserve forces and All-Out Defense Mobilization Agency to recruit, train, equip, and mobilize; military manpower shortages, their effects in a conflict, and Taiwan’s efforts to address them; civilian defense and public information efforts; protection of critical transportation, telecommunications, satellite-communications, and energy infrastructure; cybersecurity and survivability of official civilian and military networks; efforts to improve the defense forces’ image and prestige; significant gaps needing more action; United States–Taiwan cooperation; challenges in Taiwan to implementing these matters or to United States support; actions concerning the comprehensive training program under section 3353; actions concerning the joint consultative mechanism and multiyear acquisition plan under section 3355; and the list and actions under section 3356.
(f)(3) With later certifications under subsection (e)(2), the Secretaries must jointly submit updates describing changes and developments during the prior year. (f)(4) Reports must be unclassified but may include a classified annex. (f)(5) The Secretaries must jointly share appropriate unclassified portions with Taiwan.
(g)(1)(A) During fiscal years 2023–2027, despite section 23(c)(1) of the Arms Export Control Act, the Secretary of State may make direct loans available for Taiwan under section 23 of that Act. (g)(1)(B) The gross principal obligations may not exceed $2 billion. (g)(1)(C) “Cost” has the meaning in 2 U.S.C. 661a(5), includes the cost of modifying such a loan, and may include the cost of selling, reducing, or canceling amounts owed to the United States or its agencies. Amounts authorized under subsection (g) may pay those loan costs. (g)(1)(D) The United States may charge processing and origination fees up to the Government’s cost, collected from borrowers through a financing account as defined in 2 U.S.C. 661a(7). Appropriated amounts may not pay those fees. (g)(1)(E) The borrower must repay a loan within 12 years after receiving it, with no more than a one-year principal-repayment grace period. (g)(1)(F) The Secretary may set the interest rate, but it may not be below the prevailing rate for marketable Treasury securities of similar maturity. Amounts used for interest are not assistance for statutory country-assistance limits.
(g)(2)(A) Amounts authorized under subsection (g) may pay the cost of loan guarantees for Taiwan under section 24 of the Arms Export Control Act, covering commercial-loan principal obligations up to $2 billion. (g)(2)(B) A guarantee may not cover a loan over $2 billion or more than 80 percent of one borrower’s principal. (g)(2)(C) A guaranteed loan may not be subordinated to another borrower debt or another claim in default. (g)(2)(D) Repayment in United States dollars is required within 12 years after signing the loan agreement. (g)(2)(E) The United States may charge processing and origination fees up to the Government’s cost, collected from borrowers or third parties for them through a financing account. (g)(2)(F) Amounts used for guarantee costs are not assistance for statutory country-assistance limits. (g)(3) Amounts for this subsection may not be spent without advance notice to the appropriate congressional committees.
(h)(1) In addition to other Foreign Military Financing authorizations, up to $2 billion may be appropriated to the Department of State for Taiwan grant assistance in each fiscal year 2023–2027. (h)(2) The Secretary should use at least $2 million of each year’s amount for one or more blanket-order Foreign Military Financing training programs related to Taiwan’s defense needs. (h)(3) The Secretary may use the amounts to buy defense articles, defense services, or design and construction services not sold by the United States Government under the Arms Export Control Act. (h)(4) No more than 15 percent of the Foreign Military Financing made available for Taiwan in each year may be used by Taiwan in Taiwan to buy defense articles or services, including research and development, as agreed by the United States and Taiwan.
(i) Assistance may not be provided under this section after September 30, 2032.
In this section, the term “appropriate congressional committees” means—
the Committee on Foreign Relations of the Senate;
the Committee on Armed Services of the Senate;
the Committee on Appropriations of the Senate;
the Committee on Foreign Affairs of the House of Representatives;
the Committee on Armed Services of the House of Representatives; and
the Committee on Appropriations of the House of Representatives.
The Secretary of State, in consultation with the Secretary of Defense, shall use the authorities under this section to strengthen the United States-Taiwan defense relationship, and to support the acceleration of the modernization of Taiwan’s defense capabilities, consistent with the Taiwan Relations Act (Public Law 96–8) [22 U.S.C. 3301 et seq.].
In addition to the purposes otherwise authorized for Foreign Military Financing programs under the Arms Export Control Act (22 U.S.C. 2751 et seq.), a purpose of the Foreign Military Financing Program should be to provide assistance, including equipment, training, and other support, to build the civilian and defensive military capabilities of Taiwan—
to accelerate the modernization of capabilities that will enable Taiwan to delay, degrade, and deny attempts by People’s Liberation Army forces—
to conduct coercive or grey zone activities;
to blockade Taiwan; or
to secure a lodgment on any islands administered by Taiwan and expand or otherwise use such lodgment to seize control of a population center or other key territory in Taiwan; and
to prevent the People’s Republic of China from decapitating, seizing control of, or otherwise neutralizing or rendering ineffective Taiwan’s civilian and defense leadership.
Of the amounts authorized to be appropriated pursuant to subsection (h), not more than $100,000,000 may be used during each of the fiscal years 2023 through 2032 to maintain a stockpile (if established pursuant to section 3352 of this title), in accordance with section 2321h of this title.
Not later than March 1, 2023, and annually thereafter, the Secretary of State, in coordination with the Secretary of Defense, shall submit a plan to the appropriate congressional committees describing how amounts authorized to be appropriated pursuant to subsection (h), if made available, would be used to achieve the purpose described in subsection (c).
Amounts authorized to be appropriated for each fiscal year pursuant to subsection (h) are authorized to be made available after the Secretary of State, in coordination with the Secretary of Defense, certifies not later than 1 year after December 22, 2023, and not less than annually to the appropriate committees of Congress that Taiwan has increased its defense spending relative to Taiwan’s defense spending in its prior fiscal year, which includes support for an asymmetric strategy, excepting accounts in Taiwan’s defense budget related to personnel expenditures, (other than military training and education and any funding related to the All-Out Defense Mobilization Agency).
The Secretary of State may waive the certification requirement under subparagraph (A) if the Secretary, in consultation with the Secretary of Defense, certifies to the appropriate congressional committees that for any given year—
Taiwan is unable to increase its defense spending relative to its defense spending in its prior fiscal year due to severe hardship; and
making available the amounts authorized under subparagraph (A) is in the national interests of the United States.
Amounts authorized to be appropriated for a fiscal year pursuant to subsection (h) that are not obligated and expended during such fiscal year shall be added to the amount that may be used for Foreign Military Financing to Taiwan in the subsequent fiscal year.
Concurrently with the first certification required under subsection (e)(2), the Secretary of State and the Secretary of Defense shall jointly submit a report to the appropriate congressional committees that describes steps taken to enhance the United States-Taiwan defense relationship and Taiwan’s modernization of its defense capabilities.
Each report required under paragraph (1) shall include—
an assessment of the commitment of Taiwan to implement a military strategy that will deter and, if necessary, defeat military aggression by the People’s Republic of China, including the steps that Taiwan has taken and the steps that Taiwan has not taken towards such implementation;
an assessment of the efforts of Taiwan to acquire and employ within its forces counterintervention capabilities, including—
long-range precision fires;
integrated air and missile defense systems;
anti-ship cruise missiles;
land-attack cruise missiles;
coastal defense;
anti-armor;
undersea warfare, including manned and unmanned systems;
survivable swarming maritime assets;
manned and unmanned aerial systems;
mining and countermining capabilities;
intelligence, surveillance, and reconnaissance capabilities;
command and control systems;
defensive cybersecurity capabilities; and
any other defense capabilities that the United States determines, including jointly with Taiwan, are crucial to the defense of Taiwan, consistent with the joint consultative mechanism with Taiwan created pursuant to section 3355 of this title;
an evaluation of the balance between conventional and counter intervention capabilities in the defense force of Taiwan as of the date on which the report is submitted;
an assessment of steps taken by Taiwan to enhance the overall readiness of its defense forces, including—
the extent to which Taiwan is requiring and providing regular and relevant training to such forces;
the extent to which such training is realistic to the security environment that Taiwan faces; and
the sufficiency of the financial and budgetary resources Taiwan is putting toward readiness of such forces;
an assessment of steps taken by Taiwan to ensure that the Taiwan’s reserve forces and All-Out Defense Mobilization Agency can recruit, train, equip, and mobilize its forces;
an evaluation of—
the severity of manpower shortages in the military of Taiwan, including in the reserve forces;
the impact of such shortages in the event of a conflict scenario; and
the efforts made by Taiwan to address such shortages;
an assessment of the efforts made by Taiwan to boost its civilian defenses, including any informational campaigns to raise awareness among the population of Taiwan of the risks Taiwan faces;
an assessment of the efforts made by Taiwan to secure its critical infrastructure, including in transportation, telecommunications networks, satellite communications, and energy;
an assessment of the efforts made by Taiwan to enhance its cybersecurity, including the security and survivability of official civilian and military networks;
an assessment of the efforts made by Taiwan to improve the image and prestige of its defense forces among the population of Taiwan;
an assessment of any significant gaps in any of the matters described in subparagraphs (A) through (J) with respect to which the United States assesses that additional action is needed;
a description of cooperative efforts between the United States and Taiwan on the matters described in subparagraphs (A) through (K);
a description of any challenge in Taiwan to—
implement the matters described in subparagraphs (A) through (J); or
United States support or engagement with regard to such matters;
a description of actions taken to establish or expand a comprehensive training program with Taiwan pursuant to section 3353 of this title;
a description of actions taken to establish a joint consultative mechanism with appropriate officials of Taiwan, and the multi-year plan to provide for the acquisition of appropriate defensive capabilities by Taiwan, pursuant to section 3355 of this title; and
the list compiled pursuant to section 3356(a) of this title, and a description of actions taken pursuant to sections 3356(b) of this title and 3356(c) of this title.
Concurrently with subsequent certifications required under subsection (e)(2), the Secretary of State and the Secretary of Defense shall jointly submit updates to the initial report required under paragraph (1) that provides a description of changes and developments that occurred in the prior year.
The reports required under paragraphs (1) and (3) shall be submitted in an unclassified form, but may contain a classified annex.
The Secretary of State and the Secretary of Defense shall jointly share any unclassified portions of the reports, pursuant to paragraph (4), with Taiwan, as appropriate.
Notwithstanding section 23(c)(1) of the Arms Export Control Act (22 U.S.C. 2763), during fiscal years 2023 through 2027, the Secretary of State is authorized to make direct loans available for Taiwan pursuant to section 23 of such Act.
Gross obligations for the principal amounts of loans authorized under subparagraph (A) may not exceed $2,000,000,000.
In this subparagraph, the term “cost”—
has the meaning given such term in section 661a(5) of title 2;
shall include the cost of modifying a loan authorized under subparagraph (A); and
may include the costs of selling, reducing, or cancelling any amounts owed to the United States or to any agency of the United States.
Amounts authorized to be appropriated pursuant to subsection (g) may be made available to pay for the cost of loans authorized under subparagraph (A).
The Government of the United States may charge processing and origination fees for a loan made pursuant to subparagraph (A), not to exceed the cost to the Government of making such loan, which shall be collected from borrowers through a financing account (as defined in section 661a(7) of title 2).
Amounts made available under any appropriations Act for any fiscal year may not be used to pay any fees associated with a loan authorized under subparagraph (A).
Loans made pursuant to subparagraph (A) shall be repaid not later than 12 years after the loan is received by the borrower, including a grace period of not more than 1 year on repayment of principal.
Notwithstanding section 23(c)(1) of the Arms Export Control Act (22 U.S.C. 2763(c)(1)), interest for loans made pursuant to subparagraph (A) may be charged at a rate determined by the Secretary of State, except that such rate may not be less than the prevailing interest rate on marketable Treasury securities of similar maturity.
Amounts made available under this paragraph for interest costs shall not be considered assistance for the purposes of any statutory limitation on assistance to a country.
Amounts authorized to be appropriated pursuant to subsection (g) may be made available for the costs of loan guarantees for Taiwan under section 24 of the Arms Export Control Act (22 U.S.C. 2764) for Taiwan to subsidize gross obligations for the principal amount of commercial loans and total loan principal, any part of which may be guaranteed, not to exceed $2,000,000,000.
A loan guarantee authorized under subparagraph (A)—
may not guarantee a loan that exceeds $2,000,000,000; and
may not exceed 80 percent of the loan principal with respect to any single borrower.
Any loan guaranteed pursuant to subparagraph (A) may not be subordinated to—
another debt contracted by the borrower; or
any other claims against the borrower in the case of default.
Repayment in United States dollars of any loan guaranteed under this paragraph shall be required not later than 12 years after the loan agreement is signed.
Notwithstanding section 24 of the Arms Export Control Act (22 U.S.C. 2764), the Government of the United States may charge processing and origination fees for a loan guarantee authorized under subparagraph (A), not to exceed the cost to the Government of such loan guarantee, which shall be collected from borrowers, or from third parties on behalf of such borrowers, through a financing account (as defined in section 661a(7) of title 2).
Amounts made available under this paragraph for the costs of loan guarantees authorized under subparagraph (A) shall not be considered assistance for the purposes of any statutory limitation on assistance to a country.
Amounts authorized to be appropriated to carry out this subsection may not be expended without prior notification of the appropriate committees of Congress.
In addition to amounts otherwise authorized to be appropriated for Foreign Military Financing, there is authorized to be appropriated to the Department of State for Taiwan Foreign Military Finance grant assistance up to $2,000,000,000 for each of the fiscal years 2023 through 2027.
Of the amounts authorized to be appropriated under paragraph (1), the Secretary of State should use not less than $2,000,000 per fiscal year for one or more blanket order Foreign Military Financing training programs related to the defense needs of Taiwan.
The Secretary of State may use amounts authorized to be appropriated under paragraph (1) for the procurement of defense articles, defense services, or design and construction services that are not sold by the United States Government under the Arms Export Control Act (22 U.S.C. 2751 et seq.).
Of the amounts authorized to be appropriated for Foreign Military Financing and made available for Taiwan, not more than 15 percent of the amount made available for each fiscal year may be available for the procurement by Taiwan in Taiwan of defense articles and defense services, including research and development, as agreed by the United States and Taiwan.
Assistance may not be provided under this section after September 30, 2032.
Source credit: (Pub. L. 117–263, div. E, title LV, § 5502, Dec. 23, 2022, 136 Stat. 3292; Pub. L. 118–31, div. A, title XIII, § 1308(a), Dec. 22, 2023, 137 Stat. 494.)
- 2022Enacted · Pub. L. 117-263 · 136 Stat. 3292
- 2023Amended · Pub. L. 118-31 · 137 Stat. 494
A history note hasn’t been published yet. The record shows enactment by Pub. L. 117-263 on 2022-12-23.
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