Taipei: Taiwan's Executive Yuan has approved a draft bill to allocate up to NT$56 billion for reconstruction in southern regions affected by a recent typhoon and heavy rainfall. The proposed special act, awaiting legislative approval, addresses the devastation caused by Typhoon Danas and subsequent downpours in early July, impacting areas such as Tainan, Kaohsiung, Chiayi, and Pingtung counties.

According to Focus Taiwan, the NT$56 billion (US$1.87 billion) funding will target the repair and reconstruction of essential infrastructure, including electricity systems, telecommunications, cable TV networks, cultural heritage sites, and other public facilities. The funds will also support the recovery of private sectors such as agriculture, fishery, tourism, and cultural industries, alongside aid for individual households suffering financial losses. This will be achieved through subsidies, compensation, and other relief measures, with the bill remaining effective until the end of 2027.

The recent severe weather events resulted in two casualties and injuries to over 700 people across Taiwan, with mass evacuations reported. Government data indicates that more than one million households faced power outages, while 70,000 were disconnected from water mains. In the southern regions, where agriculture and fisheries dominate the economy, losses amounted to an estimated NT$3.28 billion.

Once the bill receives legislative clearance, the Cabinet must present a separate appropriation bill to access the funds. This initiative marks the second special act proposed by the current government this year, typically financed through surplus tax revenues and borrowing. An earlier act, involving $530 billion to bolster Taiwan's security infrastructure and mitigate the economic impact of U.S. tariffs, was passed and enacted by President Lai Ching-te in August.