

PRESIDENT Ferdinand Marcos Jr. has announced that P225 billion originally allocated for locally funded flood control projects in the proposed 2026 national budget will be rechanneled to education, health, and other
crucial sectors.
This decision was lauded by Senate Minority Leader Alan Peter Cayetano, who has long been advocating for a radical shift in how the government allocates its budget. The move comes as the executive branch works to remove redundant and questionable items from the proposed budget.
UNDER SCRUTINY. For two years, the Department of Public Works and Highways (DPWH) has been given a substantial budget of around P1 trillion, with about P350 billion dedicated to flood control projects. However, the agency has faced criticism for alleged issues, including double appropriations and the waste of public funds.
This led to calls from lawmakers like Senator Cayetano to re-evaluate how the DPWH’s budget is used, suggesting that funds could be better spent on addressing critical needs like the national classroom shortage.
The President’s decision not to include a new budget for DPWH flood control in 2026 is based on the fact that the P350 billion from the 2025 budget remains unspent. According to the President, these existing funds are sufficient to cover ongoing projects. While this means no new funds, it does not mean that flood control projects will stop. Instead, the focus will be on ensuring proper spending, implementation, and design of existing projects.
BUDGET PRIORITIES. The decision to reallocate funds highlights a fundamental debate over budget priorities. Supporters, such as Cayetano, argue that this is a long-overdue and radical approach to address persistent social issues. They believe that reallocating funds from a problematic agency to sectors like education and health will have a more direct and positive impact on the lives of ordinary citizens.
However, the DPWH’s own proposal for 2026 shows how significant these projects are on a local level. For example, in Cebu, DPWH district engineers had proposed a P26.5 billion budget for 2026 projects, which included P9.8 billion for road-related projects, P4.9 billion for flood control projects and P3.8 billion for multipurpose buildings and facilities. These are specific, tangible projects designed to improve local infrastructure, from building new roads and flyovers to constructing school buildings and government centers.
The President’s decision, while aimed at removing “anomalous” items, effectively halts the allocation of new funds for these locally proposed projects for flood control.
WHAT WE DON’T KNOW YET. Several key questions remain unanswered. It is unclear how the DPWH will prioritize the use of the remaining P350 billion from the 2025 budget among its numerous ongoing projects nationwide. The specific criteria for which proposed 2026 projects will be postponed or scrapped have not been detailed. Finally, while the President has demanded accountability from contractors, it remains to be seen how effectively this will be enforced and whether it will lead to a tangible improvement in infrastructure quality.
WHAT’S NEXT. The DPWH and the Department of Budget and Management, which have been instructed to review their budgets and submit necessary corrections to Congress. The House of Representatives has paused its budget deliberations until these amendments are received.
Malacañang remains confident that the 2026 spending bill will be passed on time, with the President expected to sign it before the end of the year. For local DPWH offices and communities in Cebu, the immediate future involves waiting to see how their carefully laid plans will be affected by this top-level budget overhaul. / REPORTS FROM PNA, CDF