This had already approved aid of 567 million dollars (543 million euros) in September.
On Friday, the State Department said it had approved the sale of military equipment worth $295 million (282 million euros) to the island.
Chinese diplomacy denounced a “violation of the principle of 'one China'.
Washington has long been Taipei's most important ally and largest arms supplier, angering Beijing, which claims Taiwan as part of its territory.
Beijing has intensified military and political pressure on Taipei in recent years, regularly sending warships and fighter planes around Taiwan.
Taipei said last week that China had carried out a massive naval deployment near its waters, citing “nearly 90” ships.
Over the past five decades, the United States has sold billions of dollars worth of military equipment and munitions to Taiwan, including F-16 fighter jets and warships.
We must 'fight together to avoid war,' Taiwanese president tells US
The United States has historically maintained a policy of “strategic ambiguity” regarding possible American military intervention if Taiwan were attacked by China.
