The Taiwan Allies Fund Act aims to bolster Taiwan's international standing and counter diplomatic and economic pressure from the People's Republic of China (PRC). It recognizes Taiwan as a vibrant democracy and highlights the PRC's years-long campaign to diplomatically isolate Taiwan, often using economic and diplomatic intimidation against countries that maintain relations with it. The bill authorizes the appropriation of $40,000,000 annually for fiscal years 2026 through 2028, drawn from the Countering PRC Influence Fund. These funds are designated for countries that either maintain official or significantly strengthened unofficial relations with Taiwan, have experienced PRC coercion due to these ties, and lack the independent capacity to withstand such pressure. The authorized funds can be used for various activities to support these eligible countries and Taiwan's international space, including: Supporting health initiatives as alternatives to the PRC's "Health Silk Road." Building the capacity of civil society and media to counter PRC influence and propaganda. Diversifying supply chains away from the PRC. Providing alternatives to PRC development assistance and project financing. Advancing Taiwan's meaningful participation in international forums and multilateral organizations. Working with the private sector to offer United States or allied alternatives to PRC information and communications technology infrastructure. Each eligible country may receive a maximum of $5,000,000 per fiscal year . The Secretary of State, in coordination with other agencies, will implement these activities, ensuring coordination and encouraging cost-sharing with Taiwan. The Act also mandates annual reports to Congress detailing the activities, funding, and their effectiveness.