nually to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the 
House of Representatives on efforts to expedite and 
prioritize production as required under such para-
graph. 
(d) INTERAGENCY POLICY.—The Secretary of State 
and the Secretary of Defense shall jointly review and up-
date interagency policies and implementation guidance re-
lated to Foreign Military Sales requests from Taiwan, in-
cluding incorporating the preclearance and prioritization 
provisions of this section. 
SEC. 4. AMENDMENTS TO TAIWAN RELATIONS ACT. 
(a) POLICY.—Section 2(b)(5) of the Taiwan Rela-
tions Act (22 U.S.C. 3301(b)(5)) is amended by striking 
‘‘arms of a defensive character’’ and inserting ‘‘arms con-
ducive to the deterrence of acts of aggression by the Peo-
ple’s Liberation Army’’. 
(b) PROVISION OF DEFENSE ARTICLES AND SERV-
ICES.—Section 3(a) of the Taiwan Relations Act (22 
U.S.C. 3302(a)) is amended by striking ‘‘such defense ar-
ticles and defense services in such quantity as may be nec-
essary to enable Taiwan to maintain a sufficient self-de-
fense capability’’ and inserting ‘‘such defense articles and 
defense services in such quantity as may be necessary to 
enable Taiwan to implement a strategy to deter acts of 
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aggression by the People’s Liberation Army and to deny 
an invasion of Taiwan by the People’s Liberation Army.’’. 
(c) RULE OF CONSTRUCTION.—Section 4 of the Tai-
wan Relations Act (22 U.S.C. 3303) is amended by adding 
at the end the following new subsection: 
‘‘(a) SECURITY COOPERATION AND DETERRENCE OF 
USE OF FORCE BY PEOPLE’S LIBERATION ARMY.—Noth-
ing in this Act, nor the facts of the President’s action in 
extending diplomatic recognition to the People’s Republic 
of China, the absence of diplomatic relations between the 
people of Taiwan and the United States, or the lack of 
formal recognition by the United States, and attendant 
circumstances thereto, shall be construed to constitute a 
legal or practical obstacle to any otherwise lawful action 
of the President or of any United States Government 
agency that is needed to advance or protect United States 
interests pertaining to Taiwan, including actions intended 
to strengthen security cooperation between the United 
States and Taiwan or to otherwise deter the use of force 
against Taiwan by the People’s Liberation Army.’’. 
SEC. 5. MILITARY PLANNING MECHANISM. 
The Secretary of Defense shall establish a high-level 
military planning mechanism between the United States 
and Taiwan to oversee a Joint and Combined Exercise 
Program and coordinate International Military Education 
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and Training assistance and professional exchanges aimed 
at determining and coordinating the acquisition of capa-
bilities for both United States and Taiwan military forces 
to address the needs of currently anticipated and future 
contingencies. The mechanism may be modeled after the 
Joint United States Military Advisory Group Thailand, or 
any such similar existing arrangement, as determined by 
the Secretary of Defense. 
SEC. 6. PROHIBITION ON DOING BUSINESS IN CHINA. 
(a) REQUIREMENT.—The Secretary of Defense shall 
require any contractor awarded a Department of Defense 
contract, as a condition of receiving such contract, not to 
conduct any business in the People’s Republic of China, 
with any entity that is owned by or controlled by the gov-
ernment of the People’s Republic of China or the Chinese 
Communist Party, or any subsidiary of such a company. 
(b) DETERMINATION OF NONCOMPLIANCE.—If the 
Secretary of Defense determines that a contractor of the 
Department of Defense is noncompliant with the require-
ment in subsection (a)— 
(1) such noncompliance shall be considered 
grounds for termination of the contract; and 
(2) the Secretary of Defense shall terminate the 
contract. 
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SEC. 7. TAIWAN CRITICAL MUNITIONS ACQUISITION FUND. 
(a) ESTABLISHMENT.—There shall be established in 
the Treasury of the United States a revolving fund to be 
known as the ‘‘Taiwan Critical Munitions Acquisition 
Fund’’ (in this section referred to as the ‘‘Fund’’). 
(b) PURPOSE.—Subject to the availability of appro-
priations, amounts in the Fund shall be made available 
by the Secretary of Defense— 
(1) to ensure that adequate stocks of critical 
munitions necessary for a denial defense are avail-
able to allies and partners of the United States in 
advance of a potential operation to defend the au-
tonomy and territory of Taiwan; and 
(2) to finance the acquisition of critical muni-
tions necessary for a denial defense in advance of 
the transfer of such munitions to foreign countries 
for such a potential operation. 
(c) ADDITIONAL AUTHORITY.—Subject to the avail-
ability of appropriations, the Secretary of Defense may 
also use amounts made available to the Fund— 
(1) to keep on continuous order munitions that 
the Secretary of Defense considers critical due to a 
reduction in current stocks as a result of the draw-
down of stocks provided to the government of one or 
more foreign countries; or 
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(2) with the concurrence of the Secretary of 
State, to procure munitions identified as having a 
high-use rate. 
(d) DEPOSITS.— 
(1) IN GENERAL.—The Fund shall consist of 
each of the following: 
(A) Collections from sales made under let-
ters of offer (or transfers made under the For-
eign Assistance Act of 1961 (22 U.S.C. 2151 et 
seq.)) of munitions acquired using amounts 
made available from the Fund pursuant to this 
section, representing the value of such items 
calculated, as applicable, in accordance with— 
(i) subparagraph (B) or (C) of section 
21(a)(1) of the Arms Export Control Act 
(22 U.S.C. 2761(a)(1)); 
(ii) section 22 of the Arms Export 
Control Act (22 U.S.C. 2762); or 
(iii) section 644(m) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2403(m)). 
(B) Such amounts as may be appropriated 
pursuant to the authorization under this section 
or otherwise made available for the purposes of 
the Fund. 
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(C) Not more than $2,000,000,000 may be 
transferred to the Fund for any fiscal year, in 
accordance with subsection (e), from amounts 
authorized to be appropriated for the Depart-
ment of Defense in such amounts as the Sec-
retary of Defense determines necessary to carry 
out the purposes of this section, which shall re-
main available until expended. The transfer au-
thority provided under this subparagraph is in 
addition to any other transfer authority avail-
able to the Secretary of Defense. 
(2) CONTRIBUTIONS FROM FOREIGN GOVERN-
MENTS.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of Defense may accept 
contributions of amounts to the Fund from any 
foreign government or international organiza-
tion. Any amounts so accepted shall be credited 
to the Taiwan Critical Munitions Acquisition 
Fund and shall be available for use as author-
ized under subsection (b). 
(B) LIMITATION.—The Secretary of De-
fense may not accept a contribution under this 
paragraph if the acceptance of the contribution 
would compromise, or appear to compromise, 
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the integrity of any program of the Department 
of Defense. 
(C) NOTIFICATION.—If the Secretary of 
Defense accepts any contribution under this 
paragraph, the Secretary shall notify the appro-
priate committees of Congress. The notice shall 
specify the source and amount of any contribu-
tion so accepted and the use of any amount so 
accepted. 
(e) NOTIFICATION.— 
(1) IN GENERAL.—No amount may be trans-
ferred pursuant to subsection (d)(1)(C) until the 
date that is 15 days after the date on which the Sec-
retary of Defense submits to the appropriate com-
mittees of Congress— 
(A) notice in writing of the amount and 
purpose of the proposed transfer; and 
(B) in the case of an authorization pursu-
ant to subsection (f)(1)(A), a description of the 
manner in which the use of critical munitions is 
necessary to meet national defense require-
ments. 
(2) AMMUNITION PURCHASES.—No amounts in 
the Fund may be used to purchase ammunition, as 
authorized by this section, until the date that is 15 
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days after the date on which the Secretary of De-
fense notifies the appropriate committees of Con-
gress in writing of the amount and purpose of the 
proposed purchase. 
(3) FOREIGN TRANSFERS.—No munition pur-
chased using amounts in the Fund may be trans-
ferred to a foreign country until the date that is 15 
days after the date on which the Secretary of De-
fense notifies the appropriate committees of Con-
gress in writing of the proposed transfer. 
(f) LIMITATIONS.— 
(1) LIMITATION ON TRANSFER.—No munition 
acquired by the Secretary of Defense using amounts 
made available from the Fund pursuant to this sec-
tion may be transferred to any foreign country un-
less such transfer is authorized by the Arms Export 
Control Act (22 U.S.C. 2751 et seq.), the Foreign 
Assistance Act of 1961 (22 U.S.C. 2151 et seq.), or 
other applicable law, except as follows: 
(A) The Secretary of Defense, with the 
concurrence of the Secretary of State, may au-
thorize the use by the Department of Defense 
of munitions acquired under this section prior 
to transfer to a foreign country, if such use is 
necessary to meet national defense require-
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ments and the Department bears the costs of 
replacement and transport, maintenance, stor-
age, and other such associated costs of such 
munitions. 
(B) Except as required by subparagraph 
(A), amounts made available to the Fund may 
be used to pay for storage, maintenance, and 
other costs related to the storage, preservation, 
and preparation for transfer of munitions ac-
quired under this section prior to their transfer, 
and the administrative costs of the Department 
of Defense incurred in the acquisition of such 
items, to the extent such costs are not eligible 
for reimbursement pursuant to section 43(b) of 
the Arms Export Control Act (22 U.S.C. 
2792(b)). 
(2) CERTIFICATION REQUIREMENT.— 
(A) IN
GENERAL.—No amounts in the 
Fund may be used pursuant to this section un-
less the President— 
(i) certifies to the appropriate com-
mittees of Congress that the Special De-
fense Acquisition Fund established pursu-
ant to chapter 5 of the Arms Export Con-
trol Act (22 U.S.C. 2795 et seq.) cannot 
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be used to fulfill the same functions and 
objectives for which such amounts to be 
made available from the Fund are to be 
used; and 
(ii) includes in such certification a 
justification for the certification, which 
may be included in a classified annex, if 
necessary. 
(B) 
NONDELEGATION.—The 
President 
may not delegate any responsibility of the 
President under subparagraph (A). 
(g) TERMINATION.—The authority for the Fund 
under this section shall expire on December 31, 2040. 
(h) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate commit-
tees of Congress’’ means— 
(1) the Committee on Armed Services, the 
Committee on Appropriations, and the Committee on 
Foreign Relations of the Senate; and 
(2) the Committee on Armed Services, the 
Committee on Appropriations, and the Committee on 
Foreign Affairs of the House of Representatives. 
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SEC. 8. INCREASING PRODUCTION CAPACITY FOR WEAP-
ONS FOR UNITED STATES STOCKPILES. 
(a) REPORT REQUIREMENT RELATING TO INCREASE 
IN CONTRACTED ENTITIES.—Section 222c(e) of title 10, 
United States Code, as amended by section 1701(c) of the 
James M. Inhofe National Defense Authorization Act for 
Fiscal Year 2023 (Public Law 117–263), is further 
amended by adding at the end the following new para-
graph: 
‘‘(1) Steps taken to increase the number of en-
tities contracted to supply each class of weapons de-
scribed in section 1705(c) of the James M. Inhofe 
National Defense Authorization Act for Fiscal Year 
2023 (Public Law 117–263) in order to produce re-
dundancy in the supply of such weapons.’’. 
(b) MODIFICATION TO QUARTERLY BRIEFINGS ON 
REPLENISHMENT
AND REVITALIZATION
OF WEAPONS 
PROVIDED TO UKRAINE AND TAIWAN.—Section 1703 of 
the James M. Inhofe National Defense Authorization Act 
for Fiscal Year 2023 (Public Law 117–263) is amended— 
(1) in the section heading, by inserting ‘‘AND 
TAIWAN’’ after ‘‘UKRAINE’’; 
(2) in subsection (a), by inserting ‘‘, the Com-
mittee on Foreign Relations of the Senate, and the 
Committee on Foreign Affairs of the House of Rep-
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‘‘(3) any system provided to the Government of 
Taiwan— 
‘‘(A) pursuant to section 5502(b) of this 
Act; or 
‘‘(B) that is necessary for a denial defense 
of Taiwan.’’. 
(c) ASSESSMENT ON EXPANDING NATIONAL TECH-
NOLOGY AND INDUSTRIAL BASE.—Section 222d(b) of title 
10, United States Code, as added by section 1701(d)(1) 
of the James M. Inhofe National Defense Authorization 
Act for Fiscal Year 2023 (Public Law 117–263), is 
amended by adding at the end the following new para-
graph: 
‘‘(1) An assessment of the feasibility and advis-
ability of expanding the national technology and in-
dustrial base (as defined in section 4801 of this 
title) to include entities outside of the United States, 
Canada, the United Kingdom, New Zealand, Israel, 
and Australia in order to increase the number of 
suppliers of weapons described in section 1705(c) of 
the James M. Inhofe National Defense Authoriza-
tion Act for Fiscal Year 2023 (Public Law 117– 
263), with particular attention to member States of 
the North Atlantic Treaty Organization, treaty allies 
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of the United States in the Indo-Pacific, and mem-
bers of the Quadrilateral Security Dialogue.’’. 
(d) MINIMUM ANNUAL PRODUCTION LEVELS.—The 
Secretary of Defense shall include minimum annual pro-
duction levels for weapons described in section 1705(c) of 
the James M. Inhofe National Defense Authorization Act 
for Fiscal Year 2023 (Public Law 117–263) in any con-
tract for the procurement of such weapons entered into 
on or after the date of the enactment of this Act. 
Æ 
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