S. 2722, Taiwan Energy Security and Anti-Embargo Act of 2026

S. 2722 would authorize the Department of State to establish a Joint United States-Taiwan Energy Security Center for academic collaboration on energy security. It also would require the National Academy of Sciences to report to the Congress on increasing exports of liquefied natural gas to Taiwan. The bill would authorize the Departments of Commerce, Defense, Energy, and State to promote U.S. energy exports to Taiwan and help Taiwan diversify and protect its energy infrastructure and supply. In addition, S. 2722 would require the Department of State, in coordination with other departments, to report to the Congress on its implementation of the bill. Finally, S. 2722 would expand the Maritime Administration’s (MARAD’s) War Risk Insurance program to cover certain vessels that transport goods to Taiwan.

The costs of the legislation, detailed in Table 1, fall within budget functions 150 (international affairs), 250 (general science, space, and technology), 270 (energy), and 400 (transportation).

Spending Subject to Appropriation

CBO estimates that implementing the bill would cost $22 million over the 2026-2031 period. Such spending would be subject to the appropriation of the estimated amounts.

CBO anticipates that the Joint United States-Taiwan Energy Security Center authorized under the bill would be similar to the U.S.-Israel Energy Center, a joint effort by the Department of Energy and Israel’s Ministry of Energy. On the basis of information about the cost of operating the joint center with Israel, CBO estimates that establishing a joint center with Taiwan would cost about $4 million each year and total $20 million over the 2026-2031 period.

S. 2722 would require the National Academy of Sciences to, within one year of enactment, submit to the Congress an assessment of how the United States could increase exports of liquefied natural gas to Taiwan, including the feasibility of redirecting exports from China to Taiwan, mechanisms to shift those export flows, and potential federal actions to support such redirection. Based on information from the academy, CBO estimates that the assessment required by the bill would cost $2 million.

The federal government currently operates several programs that promote U.S. energy exports and assist foreign allies in diversifying and protecting their energy sectors. CBO estimates that implementing other provisions of the bill would not significantly alter those programs and that any additional costs would total less than $500,000. On the basis of information about similar requirements, CBO estimates that the costs of preparing other reports to the Congress required by S. 2722 also would total less than $500,000.

Direct Spending

Section 6 of the bill would expand MARAD’s War Risk Insurance program to include certain vessels that transport goods to Taiwan. Under current law, vessels must be made available to the government during a war or national emergency in order to qualify for that insurance; that requirement would not apply to vessels insured under the bill. Because any payment for claims related to such insurance generally would not be contingent on further legislation, enacting the provision could increase direct spending. Using information from MARAD, CBO estimates that, on average, expected net costs for any claims (including collections from premiums charged to owners of private vessels, which reduce direct spending) would be negligible in any year.

The CBO staff contacts for this estimate are Katherine Chou (for the National Academy of Sciences), Sunita D’Monte (for the Department of State), and Aaron Krupkin (for the Maritime Administration). The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.