Several top appropriators are pushing to offer loans to Taiwan to finance as much as $10 billion in military aid authorized in the annual defense bill as a way to alleviate budget pressure on the State Department, which oversees the Foreign Military Financing program.
The position is part of a behind-the-scenes clash over how the emerging spending bill for 2023 will approach military aid for Taiwan as Washington and Taipei seek to deter a possible invasion or blockade by China in the coming years. Lead appropriators want to offer loans, while lawmakers on the foreign relations committees want to give the money to Taiwan outright through grants.
Congress clashes on loans vs. grants for Taiwan military aid (defensenews.com)