DND

FY 2027 defense budget and strategic priorities: The FY 2027 DND NEP regular fund was PHP 324.632 billion. DND Secretary Gilberto C. Teodoro Jr. said the budget needed to support equipment with bases, logistics and trained personnel as defense technology and threats changed. He urged a flexible modernization system and described sovereignty and territorial integrity as a new mission area: DND had to maintain overwatch of a stated 2.4 million-square-kilometer maritime domain, protect Philippine jurisdiction over exploration and exploitation, and build strategic bases for the Pacific and Philippine Rise as well as the West Philippine Sea. Internal peace, a continued presence in islands and BARMM election-security support remained foundations for external defense.

Veterans' welfare and health care: Teodoro presented veterans' welfare as a core priority: the President had approved the first stage of a Veterans Memorial Medical Center annex so patients can be moved while the more-than-70-year-old legacy building is rehabilitated, and DND was pursuing Valor Clinics nearer to veterans. He said staffing the clinics with competent, security-vetted personnel was a constraint, but expected three to five to be operating by year-end; the department was also linking preventive, mental-health and geriatric care for veterans and active-duty personnel.

Modernization built around systems, infrastructure and reserves: The Secretary said modernization must start with core systems rather than visible hardware alone. He cited support infrastructure, personnel, IT and cyber command-and-control systems, troop rotation and distributed strategic reserves as needs that the existing equipment-heavy, support-light budget does not fully meet. He said DND was seeking larger rotary and palletized airlift capacity, modern corvettes and frigates, greater Army mobility and nationwide storage and access infrastructure; he also sought an accounting of BCDA proceeds and said the AFP, as trust beneficiary, should receive what is due.

Security cooperation and interoperability: Teodoro said cooperation agreements provide deterrence, interoperability, technology access and training. As an example, he said Filipinos in Australia had led a nighttime 40-versus-40-aircraft strike package after training of air battle managers, while acknowledging the complete platform package was not yet in hand. He described security assistance and cooperation extending beyond the Indo-Pacific, including a Visiting Forces Agreement with France and two arrangements with Canada and New Zealand that he said had recently received Senate concurrence. He emphasized that agreements require sustained work to be effective.

Disaster response and institutional capacity: For disaster and institutional resilience, Teodoro said he directed the Office of Civil Defense to concentrate on disaster response and its coordination role in awareness, prediction and response. He asked Congress for time to develop those capabilities, arguing that rehabilitation layers can slow funds for systems-based infrastructure repair. His stated operational priority was joint logistics centers to preposition perishable supplies, medicines and water, rather than relying on lifts from Metro Manila; he illustrated the problem with an access disruption affecting delivery toward Naga City. He also said the DND proper was understaffed while managing extensive real estate and a stated stakeholder base of about 400,000.

Cybersecurity and operational security: The presentation treated IT, communications, cyber operations and operational security as foundational. Teodoro said procurement must use trusted vendors and original manufacturers because of information-security risks, and that DND and AFP need trained personnel to run the systems. He also stressed user hygiene, counterintelligence and compliance with technical security agreements as conditions for protecting systems and accessing current technologies.

Proposed budget and allocation context: The FY 2027 NEP allocated 55 percent to personal services and 35 percent to MOOE; the spoken capital-outlay figure is incomplete in the source. Teodoro said the Office of the Secretary's budget declined 31 percent because of reduced capital outlay, while the AFP's annual increase was 9.7 percent and civilian bureaus' increase was 3 percent, mostly for VMMC. He also cited 50 billion for modernization, 71 billion for AFP retirees and 11 billion for veterans' benefits, and clarified that AFP accounts for only 49 percent of the total MUP budget, which also includes PNP, PCG and BFP.

Budget request, NEP reductions and personnel capacity: Teodoro said the regular fund showed reported increases of 7 percent for personnel services and 17 percent for MOOE, but a reduction in capital outlay that would affect modernization. In the request-versus-NEP discussion, he gave a proposal figure of 196 in connection with personnel strength and a figure of 239 for capital outlay, which he said was matched to modernization items; the source does not state units for those two figures in the relevant utterances. He said the reductions would constrain reserve capacity and leave modernization unsustainable without infrastructure. He further said the current authorized troop strength was already 98 to 99 percent filled, leaving little room for rest, recreation or personnel rotation.

Reported accomplishments and capability constraints: DND reported full accomplishment of its defense-and-security policy and strategy direction, with 80 percent of policies and strategies accepted by the President and Cabinet. Teodoro reported 81 percent of Philippine Army units in the prescribed readiness condition after the standard was raised; the Air Force achieved its tactical-operations mission level but could decline without more platforms; and naval units were provided to unified commands while platforms were being added. He said ten modernization projects were being implemented, but using the full modernization fund in the year would bring next year's multi-year-obligational-authority payments to about P57 billion, leaving the department constrained.

Agency outputs, hospital conditions and financial execution: Teodoro said the Government Arsenal had provided 60 million rounds of small-arms ammunition but needed to move into technologically advanced weapons production, while the National Defense College of the Philippines was revising curriculum and emphasizing multidisciplinary security and research output. He called for more responsive, preemptive and coordinated OCD action. For VMMC, he reported 11,100 inpatients treated but said this accommodated only about 9 percent of veterans and described refurbishment needs in its aging design. He attributed less-than-optimal obligations to low bid ceilings and rising defense-material prices, reported almost 50 percent obligation versus allotment and 85 percent disbursement versus obligation in the first half of 2026, and said Horizon 2 projects had been cancelled as obsolete while Horizon 3 had been revised for new threats.

Financing flexibility: Closing the presentation, Teodoro asked that a prior GAA provision subject to Department of Finance control be adopted again, so DND could take financing opportunities acceptable to the finance department, particularly those with longer tenors.

Original DND request and separate funding lines: The opening presiding member, Rep. Bella Vanessa B. Suansing, separately cited 132.59 billion in complementary funding, including a 50-billion AFP modernization line; the currency symbol in that passage is unreliable. Teodoro later identified PHP 50 billion in programmed FY 2027 modernization funding, already committed to multi-year payments, with no unprogrammed amount. He compared DND's original request with the NEP and said reduced operating and capital funding would constrain reserves and infrastructure. The hearing did not establish a department-wide original DBM submission total. Figures of 196 for a personnel-related proposal and 239 for capital outlay lacked explicit units, so they cannot be combined into one.

AFP modernization funding proposals: Rep. Dadah Kiram Ismula supported increasing the AFP modernization budget after Teodoro said the NEP was insufficient for defense needs; she proposed no amount and made no formal motion. Rep. Arnan C. Panaligan separately urged DND to pursue release of an existing PHP 50-billion unprogrammed modernization fund for 2026, which DBM had said depended on excess revenues and continuing need. Teodoro said disaster costs could delay excess revenues. Rep. Antonio "Tonypet" T. Albano suggested added funding for the AFP engineering brigade, without an amount or decision. None of these exchanges adopted an increase to the 2027 NEP.

DND capital-outlay restoration for amendment review: Near closing, Committee Chair Rep. Mikaela Angela B. Suansing asked DND to identify critical programs and projects omitted from the NEP for possible restoration during House budget amendments. DND Secretary Gilberto C. Teodoro Jr. prioritized reduced capital outlays for equipment-support infrastructure and DND building needs, and said other needs would be sent later. Suansing requested a prioritized formal letter within the week for subcommittee consideration; Teodoro agreed. She offered support subject to fiscal space, and no specific restoration amount or approval was recorded.

2027 defense budget and modernization funding: Rep. Bella Vanessa B. Suansing opened the FY 2027 DND budget deliberations by citing the proposed department budget and a separate complementary funding figure. She said 50 billion of the latter was allocated to the revised AFP modernization program for equipment and system acquisition and upgrading, while 82.59 billion was for veterans' and AFP retirees' pensions. She presented these as investments in national security, territorial integrity and personnel. The currency symbol in this opening passage is unreliable, so those complementary amounts retain their spoken units.

Completing modernization amid maritime and hybrid threats: Suansing described a contested maritime domain, disaster-response duties, and evolving threats including cyber intrusion, disinformation, and gray-zone activities. She urged completion of the modernization program begun under Republic Act No. 10349 rather than leaving it halfway, said Congress and her representation would support that objective, and called for investment in technical capacity, a stronger Armed Forces, and a more empowered Office of Civil Defense.

Recruitment risks, worker protections and counterintelligence: Rep. Dadah Kiram Ismula raised reports alleging recruitment of Filipino government-linked personnel to send information to China. DND Secretary Gilberto C. Teodoro Jr. said the DND-related attempts known to him began as online invitations to paid work for purported think tanks, and that the people reported them before sensitive information was obtained. He said DND monitors government platforms and IT equipment, conducts security vetting, and aims to detect and isolate compromises quickly, while acknowledging it cannot guarantee they will never recur. Ismula pressed for adequate skill-based pay and benefits as a protection against recruitment; Teodoro said civil-service and COA rules allow adequate pay according to skill level and supported hazard pay for civilian personnel exposed to risk. Ismula also suggested housing benefits to reduce personnel's family-related concerns.

Alleged political influence operations: Ismula asked whether elected officials may be receiving Chinese support or amplifying pro-China messaging. Teodoro said there were grounds to suspect it, but DND lacked evidence sufficient to make a statement and did not have access to bank deposits; he said financial authorities and law enforcement were better placed to develop admissible evidence and declined details while evidence-gathering could be active. On social-media influence, he said some public statements speak for themselves and characterized the Chinese embassy website as a propaganda institution. The exchange named no official and established no individual allegation.

West Philippine Sea operations and force posture: Ismula asked whether DND's budget covered maritime security and whether it was adequate for modernization, added deployments, and protection in the West Philippine Sea. Teodoro said work there was within the regular operational budget, alongside operations around Bajo de Masinloc involving the Coast Guard and Navy, and that DND had directed WESCOM to fast-track other agencies' services to Pag-asa. He said the budget was not sufficient, describing a wider mission that includes the Pacific boundary and Philippine Rise, UN delimitation work involving features and Bajo de Masinloc, mainland bases, and strategic passages linking the West Philippine Sea and Pacific. Ismula manifested support for an increase in AFP modernization funding; her reference to a 64.3 figure was not sufficiently clear to report as a budget amount.

Procurement assurance and technical-force development: After supporting a higher modernization budget, Ismula asked how DND would ensure funds were used quickly and effectively, including for training, intelligence and joint patrols. Teodoro said acquisitions include equipment and life-cycle costs, are sourced from original manufacturers rather than middlemen, and use long-term service contracts to improve DND's supply-chain position. He also described investment in training and technical knowledge, including education in highly technical subjects and a direct-commission program to recruit technically qualified personnel. The response set out DND's stated procurement and personnel-development approach; it did not provide a separate funding figure or a specific joint-patrol commitment.

Related legislative intervention on foreign interference: After Ismula concluded, Rep. Alexander Ty Pimentel briefly interjected that the espionage concern discussed in the round had led to a proposed anti-spy or anti-foreign-interference bill pending before the Committee on National Defense. The source does not provide the bill's formal title or status beyond that description.

Modernization appropriations and unprogrammed funding: Rep. Arnan C. Panaligan asked how the proposed P50 billion for the 2027 AFP modernization program, with no unprogrammed appropriation, would affect Horizon 3 and what it would cover. DND Secretary Gilberto C. Teodoro Jr. said the P50 billion was already obligated for MAICA payments and funded no new items. Panaligan requested the items charged to the P40 billion for 2026 and proposed P50 billion for 2027. Teodoro said disaster damage and expected weather disturbances could delay excess revenues that might support 2026 unprogrammed funds.

Loan ceiling for defense modernization: Panaligan said he filed House Bill No. 8059 to raise the PD 415 loan ceiling for a single project from US$300 million to US$1 billion, and suggested the cap might instead be removed. Teodoro preferred no statutory cap, saying DBM and DOF would retain fiscal control, set an affordable ceiling, and approve the loan arrangement entered into by DOF.

U.S. assistance cited for modernization: Panaligan asked about U.S. Senate Bill 1497, which he called the Philippine Enhanced Resiliency Act. Teodoro said it had been enacted by the U.S. Congress and said US$100 million would be allocated by the U.S. government for the following year, within a maximum of US$500 million annually depending on Treasury availability. He said its priorities included coastal defense, long-range fires, maritime security and integrated air defense, and that it would help modernization alongside Japan's official security assistance for domain awareness.

Navy acquisitions and ship completion: Panaligan asked whether plans to acquire two additional Malvar-class missile frigates could be confirmed and followed up on unfinished sensors and weapon systems for Rizal- and Malvar-class ships. Teodoro confirmed an intent to acquire the frigates but said the procurement trigger had not been pulled; he said installation and upgrading of the unfitted systems were ongoing.

Air-defense capability as a financed force package: Panaligan asked about multi-role fighters, additional air-defense missiles and coastal-defense missiles. Teodoro said the plans remained subject to financing and that a fighter acquisition needs ground control, domain awareness, air-to-air refuelling and hangarage. He described the requirement as a force package and referred to a minimum force package of 40 for external defense, without the source making the unit clear.

Budget authority and enabling infrastructure: Panaligan said the Executive prepares the expenditure program and Congress cannot increase proposed appropriations without taking funds from other items, placing the funding contest at DBCC and DBM. Teodoro added that connectivity, infrastructure able to carry needed equipment, logistics and education funding were necessary for DND mission roles.

Veterans' pensions, care and social support: Rep. Arlyn P. Ayon asked whether DND's plans and budget gave sufficient weight to veterans, especially older veterans facing health-care and living costs, and how Congress could support concrete benefits and care. DND Secretary Gilberto C. Teodoro Jr. said the department's position was to decouple veterans' pensions from active-duty pay by law, explaining that the stated compromise was a 5-percent pension increase for three years, or 15 percent by 2028. He said DND hoped to launch a first hospice by year-end for older veterans without homes who remain in hospitals because they have nowhere else to go, while caregiver accreditation and recruitment and facility construction remained obstacles. He also cited veterans' need for socialization and said earlier disease monitoring and care during active duty could reduce later extensive-care needs; he did not present these measures as completed outcomes.

Assurance and durable pension reform: In a follow-up, Ayon asked whether DND could assure the committee that no veteran would be left behind because of lack of funds, delayed benefits or inadequate health care. Teodoro said DND was advocating veterans' benefits, but framed pension reform as a continuing policy question: AFP retirees should not simply be grouped with other pension groups, and any replacement for the old, unsustainable system should give both active personnel and retirees confidence while accounting for fiscal pressures. He added that DND tries to use retired enlisted personnel, NCOs and civilian personnel for their expertise while training successors.

Sulu peace and maritime-security capacity: Rep. Munir N. Arbison Jr. manifested full support for DND and the AFP, saying their continued presence and support had helped sustain peace and development in Sulu and asking that support continue. DND Secretary Gilberto C. Teodoro Jr. thanked him and said peace in Sulu would give WestMinCom, particularly Naval Forces West, an opportunity to perform functions guarding the Sulu Sea passage into a major sea lane of communication in Philippine internal waters. The exchange was a manifestation and acknowledgement of that operational rationale; it did not announce a new project, funding figure, or approved action.

MUP pension reform, contributions and burden sharing: Rep. Antonio L. Tinio said the proposed MUP pension budget had risen from 68.6 billion in 2015 to 154 billion in 2027 and argued that AFP and other uniformed personnel should move to a contribution system rather than rely entirely on GAA subsidy. DND Secretary Gilberto C. Teodoro Jr. said the AFP accounts for 49 percent of the 154-billion total, which had increased after veterans sought an adjustment. He did not oppose pension reform, but said its timing, effects on recruitment and disabled personnel, and actuarial sustainability had to be studied. He raised, not as a settled proposal, possible LGU burden sharing for locally oriented civilian-uniformed services, while saying the AFP should be separated from those services. Teodoro said he could not ask AFP personnel to contribute at present, citing an about-90-percent fill-up and additional demands; he said a contribution system for new entrants could be considered if designed to mature sustainably and preserve legislated benefits.

Chinese-language teaching: clarification limited to Jinan University: Tinio asked about Teodoro's concern over Chinese-language teaching and cultural exchanges. Teodoro said the concern arose from reports that teachers were trained by Jinan University, which he described as the source of a supposed study claiming Batanes was part of China; DND had alerted other agencies but was not actively pursuing the matter. After Tinio said public remarks could be understood to implicate local Filipino-Chinese schools, Teodoro clarified that he was referring to Jinan University and said DND had no evidence against local Chinese schools.

SeaLight and the standard for foreign malign influence: Tinio questioned the provenance of a SeaLight report that connected Jinan University to teacher training, presenting material that he said linked SeaLight director Ray Powell to Stanford's Gordian Knot Center and U.S. Navy-related funding. Teodoro said he was not aware of SeaLight's funding and was not in a position to confirm the claimed institutional link. He said disclosure of Powell's connections was for Powell or the Center, while DND relies on independent sources and assesses foreign malign influence by whether information is misinformation rather than information itself.

Tagoloan enforcement and the Navy dry dock: Rep. Antonio L. Tinio asked how the raid involving Sanja Steel at the PHIVIDEC industrial estate related to the planned Tagoloan dry dock. DND Secretary Gilberto C. Teodoro Jr. described security concerns and alleged legal and environmental violations, including substandard rebars, ore needing disposal, a cancelled environmental compliance certificate and a cease-and-desist order. He said NBI had obtained a judicial search warrant and, according to NBI, had conducted a test buy. Asked about the dock's budget and timetable, he said the Navy needed it urgently because Sangley's shallow facilities could not service its incoming vessels. It would be dedicated to Philippine Navy use and funded after title to the separated site was obtained. His timetable was 'as soon as possible'; no specific appropriation or construction date was supplied.

Reported U.S. access and Balikatan coordination: Tinio cited a reported attempt by U.S. soldiers to enter PHIVIDEC and asked about their interest in the site and future facilities. Teodoro related it to Balikatan activity, said Philippine personnel were also involved and suggested they were seeking access to view the bay. He said the Philippine Army denied entry for lack of coordination and that the area lacked environmental clearance. Asked about eventual U.S. use of the dock, he said Philippine requirements would fill it and stressed the need for a dedicated Philippine facility.

Pax Silica and competing assessments of alliance risk: Tinio argued that U.S.-associated military and commercial facilities, including the proposed Pax Silica manufacturing presence, could expose critical Philippine infrastructure to attack in a future U.S.-China conflict. He cited asserted attacks on military facilities and commercial data centers abroad and asked how AFP could protect lives and the economy. Teodoro countered that China's actions already posed a threat regardless of alliances and defended wider partnerships, resilient supply chains and rapid adoption of critical technology as deterrence. He said he was unfamiliar with Pax Silica's corporate workings. The hypothetical attack scenario and Teodoro's strategic assessment remained competing positions; no facility-specific protection plan was supplied.

Uniform personnel and aggregate clothing data: Rep. Johanne Monich G. Bautista asked for DND's number of uniformed personnel and the department-wide allocation for uniforms and fabrics. DND Secretary Gilberto C. Teodoro Jr. put the personnel count at 162,000, but said clothing figures were held by service and had not been aggregated. He said DND could provide the information; the exchange did not produce an aggregate clothing budget.

Philippine fabrics, safety standards and local capacity: Bautista said RA 9242 and its implementing rules require Philippine tropical fabrics in government uniforms and asked DND for projected spending on compliant fabrics. Teodoro said he did not have the figure and described safety, fireproofing and supply-chain constraints for battle-dress uniforms, while promising to provide the information. Asked about working with DOST and local industry to address the gap, he said he had not yet devoted time to that work but would schedule a department-wide review. Bautista said her reading of the rules required at least 5 percent Philippine fabric; Teodoro said there was some Philippine-fabric component in general office attire and barongs. The round records no projected compliant-fabric spending or procurement commitment.

RA 12024, risk capital and technology rights: Bautista asked what 2027 procurement or program spending would support local production, maintenance and Filipino suppliers under RA 12024. Teodoro said there would be none, arguing that the law was flawed because it lacked co-equity, co-investment and research-and-development provisions. He said government needs risk capital and meaningful intellectual-property rights to obtain technology transfer rather than merely co-produce. When Bautista asked whether he was calling for amendment, Teodoro said yes and said R&D could be placed with DOST. Bautista said she would look into his proposed amendments and implementation suggestions; the round records neither a filed amendment nor an approved appropriation or procurement change.

Mutual Defense Treaty and Taiwan-contingency limits: Rep. Edgar R. Erice asked what would trigger the Mutual Defense Treaty and whether a Taiwan conflict could draw in the Philippines through EDCA sites or Philippine territory. DND Secretary Gilberto C. Teodoro Jr. said Article 5 activation would follow a government call after an attack on either country or a public vessel; for the Philippines, he said that call would be for the President. He said the President's guidance prohibited offensive activity and that EDCA sites could be used only if the Philippines was under attack or threat, while their use for an external conflict remained speculative. These were Teodoro's account of governing limits, not a scenario-specific commitment.

Offensive missiles and Philippine control: Erice asked whether U.S. offensive missiles could be permanently positioned in the Philippines or launched from Philippine territory. Teodoro said weapons would be welcome if they became part of the Philippine armed forces or arsenal, and said they could not be used for offensive purposes unless Article 5 were activated, describing their purpose as defending the Philippines. The exchange did not announce a missile deployment or authorize an attack.

West Philippine Sea resources and joint exploration: Erice asked for the long-term West Philippine Sea objective and how it related to the President's reported discussion of joint oil exploration with China. Teodoro said the objective remained to explore and exploit resources for Filipinos, and said any joint exploration was subject to Philippine law and the Constitution. The exchange did not establish a joint-exploration agreement or outcome.

PHIVIDEC enforcement and espionage allegation: Erice raised reports and allegations about illegal activity at the Philippine Veterans Industrial Estate in Cagayan de Oro. Teodoro said PHIVIDEC was supervised by DND and said DENR had issued a closure order and revoked an ECC over substandard steel, environmental damage, radioactively tainted scrap metal, and danger to workers. When asked whether the site was being used for Chinese-government espionage, Teodoro said there was no evidence and said the NBI's entry followed a court search warrant. The Secretary did not substantiate the espionage allegation.

Joseph Sy citizenship allegation: Erice also asked about an allegation involving Joseph Sy. Teodoro said the allegation he knew concerned fake citizenship, not espionage, and said it was a Bureau of Immigration matter. He did not confirm an espionage issue.

Drone modernization, integration and supply resilience: Rep. Brian Poe asked why the Air Force budget presentation did not show a specific drone-procurement allocation and argued that evolving drone and robotic technology could alter defense economics. DND Secretary Gilberto C. Teodoro Jr. said drone acquisition is within the modernization fund, but stressed that operational integration, trained personnel, connectivity and secure real-time networks matter more than hardware alone; he said there was already a fleet of UAVs providing ISR services. When Poe asked about naval procurement and possible supply restrictions on critical drone hardware or chips, Teodoro said specific systems could not be disclosed because they are sensitive, and said they were in contact with several countries with drone expertise and with SOFA-partner countries concerned with supply-chain resilience. Poe's approximate comparison of one US$70-million F-16 to 2,000 drones was his illustration, not a DND procurement estimate. The exchange did not disclose a drone line item, quantity, system or procurement award.

NDCP capital outlay and defense-education program: Poe said the National Defense College of the Philippines (NDCP) showed a 9.65-percent decrease in the NEP and asked about its programs, including the next Senior Executive Class batch of the MNSA program. Teodoro described the change as capital outlay connected to a new structure and an unspecified finishing item, and said NDCP would need rebuilding; the source does not identify the item or a completed project. He said he was reviewing the proposed Senior Executive Program content so graduates would better understand the defense ecosystem and contemporary government-system constraints, rather than follow an old paradigm. No next-batch date or completed curriculum change was given.

OCD and MBCP capital-outlay and relocation plans: Poe noted an apparent 0.96-percent OCD reduction and said that, on a P2.5-billion base, the decrease could matter for disaster relief. Teodoro answered that the reduction was capital outlay and described a longer-term need to move OCD and MBCP from crowded Camp Aguinaldo. He said he had instructed OCD to look for a Bonifacio location that would not hinder access for local executives and civilians, and said DND was looking at relocating MBCP to a 60-hectare DND property in Camp John Hay, Baguio, to free Camp Aguinaldo space. These were described as plans or instructions, not approved relocations, completed facilities or budget releases.

Military-infrastructure inventory and pending update: Rep. Sarah Jane I. Elago asked for an update on the DND-DPWH military-infrastructure program, including unfinished and unusable works. DND Secretary Gilberto C. Teodoro Jr. said DND could provide an update and described released DND funding as insufficient to complete the work. He gave DND's figures as 78 projects: 51 still implementable and 27 non-implementable. Responding to Elago's reference to more than 200 uncompleted projects, he separately said about 200 projects had been completed but not utilized; the exchange did not reconcile those descriptions. Elago also cited prior reports of 648 completed out of 944 and 15 billion pesos in uncompleted, idle and unusable infrastructure; those were her characterizations, not confirmed by Teodoro in this exchange.

DPWH responsibility and possible accountability action: Elago asked whether the projects had been inspected and requested an update on discussions with DPWH about possible charges. Teodoro said he had been told that pre-2020 projects and their funds were DPWH matters, while DND was responsible for its major-base standards. He had no update at that time on possible charges and said DND would try to provide one before plenary, subject to competing disaster response and BARMM-election demands. No completed investigation, charge, or report delivery was recorded.

Modernization agreements and restricted procurement information: Elago asked which agreements had been signed under the revised AFP modernization program and which countries were involved, referring to ten agreements as part of her question. Teodoro said he could disclose only categories: major weapon systems and domain-awareness systems for external defense. He described most contracts as government-to-government arrangements involving multiple countries, but said some origins could not be identified because linking a system to its country of origin could compromise it. He described the partners only as like-minded countries with shared West Philippine Sea interests and without supply-chain problems. Elago requested a modernization-program report covering 1995 to the present; the exchange did not provide that report.

Tomahawk drill approval and local safety information: Elago asked who approved a reported Balikatan Tomahawk firing from Tacloban toward an impact area in Nueva Ecija and whether local governments had an information role. Teodoro said the Republic of the Philippines approved the activity through the annual list of approved activities entered with the United States Mutual Defense Board, which he said was led by DFA. He said local notice was governed by operational security and that DND ensured no harm to the community, identifying Fort Magsaysay as the site involved. The exchange did not establish a broader local-consultation rule or record a new approval.

Balikatan fishing assistance: Elago asked about assistance for fishers affected by fishing restrictions during Balikatan. She referred to 6,300 affected fishers and later said reports and fisher organizations indicated only 226 had received aid; those counts were her statements. Teodoro said assistance to local government units came through BFAR and other agencies, but did not give a distribution count or amount. Elago said she would raise the matter with the Department of Agriculture; no aid-distribution outcome was recorded.

Balikatan exercise spending and restricted amounts: Elago asked what the Philippines spent on Balikatan in 2025 and 2026 and where the budget was lodged. Teodoro said the Philippines spends for the exercises because they are for mutual defense, but said some amounts could not be disclosed because they could be tied to activities. He said the budget was in training and did not know whether other departments were also spending. No total spending figure or cross-agency reconciliation was provided.

Learning activities and children's exposure to firearms: Rep. Sarah Jane I. Elago asked how AFP learning tours were funded and requested a spending report. DND Secretary Gilberto C. Teodoro Jr. initially cited education funds, grants and international military-education arrangements; when she clarified locally hosted institutional tours, he referred to reserve-force development and ROTC while saying the education courses had no budget. Elago presented reports and photographs of children handling firearms during military-hosted tours and sought a clear prohibition and accountability. Teodoro said he would not tolerate the practice, would ask DSWD to brief units on proper engagement with people under 18, and would direct the Undersecretary for Defense Administration to take charge. No spending report, specific penalty or completed policy was provided.

Sexual-assault prevention and gender-and-development reporting: Elago asked whether sexual-assault prevention, investigation and accountability mechanisms in the military had been strengthened. Teodoro cited work with DSWD, including victim identification, and said abuse could not be tolerated. Elago requested DND and all attached agencies' compliance reports on their gender-and-development mandate. No report or new prevention mechanism was presented in the exchange.

Civil-military operations in Metro Manila: Elago questioned urban civil-military deployments, citing reports concerning the 12th CMO Battalion in Marikina and Caloocan and a housing-rights advocate allegedly called in to surrender. She argued that such encounters frightened residents dealing with housing and livelihood concerns and asked for clear standards. Teodoro described a consolidated national CMO command focused on foreign malign influence, while maintaining that internal security remained part of its work. Elago sought a status report on the 12th CMO presence and reiterated earlier requests concerning TIKAS and fishing-ban impacts linked to Balikatan. The exchange recorded no commitment to withdraw units, investigate the reported encounter or deliver the requested CMO report.

Ligtas Pinoy centers and hazard-based siting: Rep. Eulogio "Leo" R. Rodriguez asked whether the 2027 sites and priority LGUs for Ligtas Pinoy evacuation centers had been selected and what criteria would govern them. He said the proposal was P3.06 billion for 34 centers, described as two per region at P90 million each, and urged consideration of typhoon-exposed, sometimes isolated Catanduanes; the figures and site request were Rodriguez's statements, not an announced allocation or selection. DND Secretary Gilberto C. Teodoro Jr. said a center cannot simply be placed in every city or municipality when neighboring places share flooding, volcanic, or other hazards. He called for hazard mapping to identify a sensible common site, with the host municipality's consent because it could temporarily receive evacuees from elsewhere. No 2027 site, including one in Catanduanes, was confirmed in the exchange.

Eastern seaboard surveillance and proposed naval-base support: Rodriguez asked what 2027 budget and modernization investments would strengthen radar, communications, air, and naval presence on the eastern seaboard near Catanduanes, citing foreign vessels that he said had at times gone unmonitored. Teodoro said domain awareness was continuing in DND budgets, acknowledged that eastern-seaboard infrastructure was insufficient, and said additional Philippine Coast Guard vessels could potentially be assigned there to improve vigilance. Rodriguez then sought an update on a proposal, raised in the previous year's deliberations, for a naval base in Catanduanes to support eastern-seaboard patrols. He said a Philippine Coast Guard structure had been completed and might be put to use; this was his account, and the source's location wording is unclear. Teodoro said Coast Guard and DND requirements differed because DND would need more space and larger vessels, reported multiple claimants in the area and reduced capital-outlay funding, and said DND might instead discuss cooperation with the Coast Guard based on capabilities that could reach mainland Bicol. The round records neither approval nor construction of a naval base, and no Catanduanes allocation was confirmed.

Defense self-reliance as secure supply chains: Rep. Elijah Rumbaoa San Fernando asked how the Philippine Development Plan's goal of a modern, credible, self-reliant defense force should be understood. DND Secretary Gilberto C. Teodoro Jr. said self-reliance means securing supply chains by the most expeditious and cost-effective means, on favorable terms and with the least lead time; it does not mean total indigenous production or merely import substitution. He said resilience can include external supply arrangements when that is the practical way to benefit the Philippines.

Government Arsenal roadmap and ammunition inputs: San Fernando said the Government Arsenal NEP budget was down 21.8 percent and asked why. Teodoro attributed the reduction to capital outlay for structures and facilities, said there was a new Arsenal roadmap, and said future activity would move away from small arms toward an unspecified focus. San Fernando then cited a 2026 target of 60 million ammunition rounds and actual output of 500,000. Teodoro attributed the gap to sourcing precursor materials amid a worldwide shortage and supplier's market; he identified nitrocellulose and said availability could include the United States, South Africa, Brazil and a small number of other countries. The stated budget and production figures were San Fernando's, not independently established in this exchange.

Technology transfer, research and intellectual-property participation: Citing a provision he described as requiring foreign procurement to include an understudy program and technology transfer, San Fernando asked how many multibillion-peso DND contracts in the 2027 program had audited, binding clauses. Teodoro said there were very few new 2027 contracts. He argued that the cited law was unworkable without research-and-development spending and equity participation that would give the country a share in intellectual-property rights; in his account, bearing risk is necessary for viable self-reliance. The legal requirement is reported as San Fernando's description, not independently verified here.

Industrial-policy conditions for defense capability: San Fernando argued that effective defense requires industrial policy so the country can provide for itself if foreign material sources fail. Asking about a statement he attributed to Secretary Arsenio Balisacan, he contrasted that view with the PDP's self-reliant-defense outcome. Teodoro said the point may be not to reinvent technology available through partnerships or co-ventures, while stressing domestic prerequisites including lower transaction and administrative costs, connectivity and power. He agreed with San Fernando's closing position that the country should be able to produce for and equip itself. The Balisacan attribution is San Fernando's statement, not independently verified in this round.

Navy-area reclamation, drainage and interagency review: Rep. Junard "Ahong" Q. Chan said an ongoing reclamation inside the Philippine Navy area in Lapu-Lapu City lacked city, Philippine Reclamation Authority and DENR clearances, and was blocking a natural waterway and contributing to flooding. Those are Chan's allegations and characterizations. He sought coordinated resolution with DND and the city so development would align with the city master plan and drainage outfalls. DND Secretary Gilberto C. Teodoro Jr. said DND would make an internal study; legality questions would be referred to other departments in consultation with DND, and he could ask affected agencies to look into drainage. Teodoro referred to a pending proclaimed-area case, while Chan said his reclamation issue was distinct. Teodoro said consultation was needed before a definitive commitment or answer. No legality finding, meeting or corrective action was recorded.

BCDA earmarked revenues and pledged projects: Rep. Roberto Nazal asked why the AFP had P10.285 billion in accumulated BCDA-share earmarked revenues as of December 31, 2025, including whether the balance reflected insufficient AFP requests or unapproved requests. Teodoro said he had been informed the earmarked BCDA funds were for existing programs. In a partly unclear exchange, Nazal understood the funds to be pledged for payments; no 2025–2026 request amounts or approval figures were supplied. The stated balance is Nazal's figure and was not independently reconciled in this round.

Off-budget balances, restrictions and budget planning: Nazal cited P4.420429 billion in off-budget balances as of December 31, 2025, including P1.587 billion for the Army, P984.652 million for the Air Force and P138 million for the Navy, and asked about restrictions on their use. Teodoro said the accounts included ongoing projects and Army trust receipts requiring remittance to DBM before disbursement. He said they were lodged with BTr, earned no interest and had restrictions depending on the collecting agency, but could be used for actual requested, implementable projects. He agreed to provide a project list and said consideration of available balances formed part of AFP agencies' submissions for DND's 2027 request. The exchange did not reconcile Nazal's figures, establish uniform legal availability or quantify an offset to the budget request.

OCD airlift coordination and the reported Zambales delay: Deputy Speaker Jefferson F. Khonghun asked how OCD requests AFP helicopter and other air assets for rescue and food delivery are processed. DND Secretary Gilberto C. Teodoro Jr. said the AFP allocates assets according to availability, weather and area needs; preemptive deployments are handled by area commands, while sudden needs can take hours or days. He said DSWD prioritizes food-relief needs with OCD and AFP representation during a crisis. Khonghun then described a Zambales request for food airlift to an isolated barangay: in his account, a Monday request was scheduled for Saturday and then cancelled while the community had been isolated and lacked food. Teodoro said an actual emergency in the OCD system should not be difficult and said no such approval or request had reached him; after Khonghun relayed the OCD explanation, Teodoro said he would look into it. The incident, timing and conditions are Khonghun's account; no service finding or completed corrective action was recorded.

Subic naval-base transfer and shipbuilding plans: Khonghun asked for an update on transferring a naval base to Subic. Teodoro said DND was awaiting a presidential proclamation and hoped to move as soon as possible. He cited marginal current use of the area and plans to expand shipbuilding, describing the approach as net-zero-loss. He also said DND hoped the facility would produce the first Philippine-Korean co-produced logistics supply ship. These were plans and hopes, not a proclamation, transfer, expansion or completed ship.

Officer accountability and confidential-fund inquiry: Rep. Renee Louise M. Co sought the disposition of matters involving Colonels Nolasco and Lachica, alleging misuse of OVP and DepEd confidential and intelligence funds. Teodoro said an Ombudsman investigation involving the two officers was ongoing and DND/AFP would cooperate. He said the Chief of Staff had approved termination of the AFP inquiry because of that Ombudsman investigation; this did not mean the officers themselves had been terminated. When Co asked, Teodoro said they had not yet been terminated, and later said there was no resolution to the Chief of Staff. Co requested records and accounting; no amount, sanction, restitution, reform or final disposition was provided.

Elbit replenishment and local defense-industrial capacity: Co asked whether DND had entered new Elbit contracts or arms procurement. Teodoro said missile systems used in training needed replenishment but there were no additional or new Elbit contracts. He said local capacity was principally small arms while DND needed broader systems; local industry could help if it scaled and delivered relevant capability. On drones, he said local production is possible but technology and payload matter and change quickly. No new contract, local-production program or procurement decision was announced.

Military-drone rules and responsible use: Co asked whether the military had written drone guidelines and a timetable. Teodoro said systems for responsible use were still evolving and confirmed there were no written guidelines then. He said DND had no offensive drone use insofar as it was concerned, describing current use as surveillance, and said updates could be furnished insofar as material was disclosable without compromising systems. No timetable or operational detail was provided.

Toboso operation spending and restricted disclosure: Rep. Renee Louise M. Co asked for the Toboso operation's cost, liquidation and transparency safeguards. DND Secretary Gilberto C. Teodoro Jr. refused to disclose an amount on operational-security grounds. He maintained that the spending was subject to liquidation and described its costs as minimal compared with West Philippine Sea fuel and humanitarian-assistance spending. Neither an amount nor a liquidation record was supplied in the exchange.

Disputed civilian deaths and the after-action report: Co cited a fact-finding report identifying nine civilians and a report she attributed to Dr. Raquel Fortun concerning one person's death. Teodoro disputed civilian status, citing military eyewitness accounts that the people were armed. He defended the operation as legitimate and described four encounters with opportunities to surrender. Co maintained her human-rights concerns, cited an ongoing CHR inquiry and said she had filed a House investigation resolution. Teodoro said he had received a verbal briefing and understood AFP had an after-action report; he committed to furnish the committee that report. Asked about a mission order, he said it would be included with factual material that could be disclosed securely, not conclusions. The competing accounts were not resolved in the hearing, and the promised report was not presented in this exchange.

Lumbia development, EDCA scoping and relocation: Rep. Rufus B. Rodriguez asked about the Lumbia 15th Strike Wing and EDCA-site budget and U.S. counterpart support. Teodoro stated P115 million as the remaining amount for facilities, but the exchange did not establish a 2027 allocation. He said development and a maintenance base were hampered by right-of-way issues and informal settlers, and that DND was pursuing legal proceedings and adequate relocation so Lumbia could serve the Strike Wing and a Northern Mindanao OCD operations center. U.S. activity was still being scoped; Teodoro said no structure had been agreed, while a multipurpose warehouse and air-traffic-control enhancement were being considered. Rodriguez also raised possible social harms if U.S. personnel were present; Teodoro said they would be guided by the SOFA if present. These are stated amounts and plans, not completed development, completed relocation or agreed U.S. construction.

Tagoloan dockyard and fleet maintenance: Rodriguez asked about the proposed Tagoloan naval base. Teodoro described it as a dockyard in the southern PHIVIDEC area awaiting finalization of titling, and put the complete dry-dock project with equipment at about P40 billion. He said it could support the growing fleet, accommodate an LPD and offer a relatively typhoon-free maintenance site. He said DND was trying to complete titling because Sangley was shallow, small and increasingly hard for naval platforms to maneuver. The P40-billion figure is Teodoro's stated estimate; no title, construction start, dockyard approval or delivery was recorded.

Army basing and Northern Mindanao logistics planning: Rodriguez asked whether the 4th Infantry Division would leave Patag, Cagayan de Oro, and urged that it remain. Teodoro said there was no specific guidance to move that division; the Army was instead scoping division and brigade locations based on logistics, connectivity, medical support and links to other strategic bases. He said Cagayan de Oro and Misamis Oriental were an area of prime consideration, with Lumbia, the proposed dockyard and OCD operations relevant to the broader Northern Mindanao logistics picture. This was planning guidance, not an approved enlargement, confirmed retention at Patag, or final basing decision.

Proposed joint camp and AFP logistics priorities: Rep. Marlo C. Bancoro raised a parochial proposal for a joint PNP, Army and Coast Guard camp, but the location, several participating bodies, MOA details and fund-download details are unclear in the source. DND Secretary Gilberto C. Teodoro Jr. said AFP units were rescoping their areas of operation based on logistics requirements and cautioned against diverting attention from major logistical bases, because their resupply must come first. No approval, memorandum, funding release or construction outcome was recorded.

Flood preparedness and pre-disaster coordination: Rep. Anna York P. Bondoc, M.D. described repeated Pampanga flooding and commended Army assistance. She recounted three years of Bantay Sapa cleanups with military, Coast Guard, DENR and local partners, including more than 1,500 TUPAD participants in June, while noting that floods persisted. Returning to preparedness later, she asked to work with OCD before recurring disasters. DND Secretary Gilberto C. Teodoro Jr. agreed and said disaster anticipation remained a pending deliverable. Bondoc renewed her dredger request and expressed budget support without receiving an additional procurement commitment.

Dredgers for flood control and naval access: Bondoc said Manila Bay siltation was obstructing drainage and Navy operations and asked DND to support dredger procurement. DND Secretary Gilberto C. Teodoro Jr. agreed that naval bases and ports needed dredgers and said one was in the pipeline. Bondoc also proposed changing the auction requirement she described under the Tariff and Customs Code so seized illegal dredgers and other usable vessels could instead be transferred to the Navy, Coast Guard or other agencies. That proposal received no substantive response or recorded adoption in this exchange.

Flood-resilient northern connectivity: Rep. Anna York P. Bondoc, M.D. warned that prolonged flooding on MacArthur Highway left northern connectivity vulnerable if NLEX also became impassable, with consequences for trade and national security. She raised incomplete bridges and recurrent flooding across Pampanga, Bulacan and Tarlac. DND Secretary Gilberto C. Teodoro Jr. offered an elevated roadway as an offhand suggestion, then called for a network-scale engineering solution with the appropriate agencies instead of piecemeal works. He said OCD's present capability was coordinating response and that major resilient infrastructure required the agencies responsible for it. He undertook to raise the issue urgently on a national-council basis to support needed legislation and appropriations; no specific project or funding was approved in the exchange.

Fort Magsaysay: local coordination and flood control: Rep. Julius Cesar "Jay" V. Vergara described flooding across the Nueva Ecija-Pampanga river system in linking it to local concerns involving the Fort Magsaysay Reserve, citing a 44,341.637-hectare area. He asked for an identified DND or Army representative to engage affected local governments. DND Secretary Gilberto C. Teodoro Jr. said military land requirements, interprovincial connectivity and flood control had to be addressed together, acknowledging staffing shortages in real-estate management. He asked the Army's IMCOM to contact Vergara and Rep. Rommel Rico T. Angara within the week and establish a process for resolving the issues, with flood-control matters to be elevated to DPWH or another appropriate agency. Presiding chair Rep. Bella Vanessa B. Suansing reiterated the meeting direction and required monthly progress reports; the exchange did not report a completed resolution.

Military-reservation residents in Aurora: Rep. Rommel Rico T. Angara warned against abruptly displacing established communities from military-reservation land in Aurora. He estimated that more than 6,000 hectares across three or four barangays could affect about 3,000 families, and urged a coordinated process involving DND, local governments, legislators and national officials. DND Secretary Gilberto C. Teodoro Jr. identified boundary areas where Army presence was thin and the Dingalan foreshore as priorities, and directed naval personnel to work alongside IMCOM. No relocation arrangement was agreed in the exchange.

Negros security amid Kanlaon disruption: Rep. Jeffrey P. Ferrer asked about peace and order in Negros. DND Secretary Gilberto C. Teodoro Jr. assessed both Negros Occidental and Negros Oriental as stable, crediting cooperation between local governments and the AFP. He stressed that continuing Kanlaon degassing, relocation needs and recovery left the area unable to afford security disruptions.

Disaster rehabilitation, relocation and damaged bridges: Ferrer asked about rehabilitation after damage he attributed to Bagyong Tino in Negros's fourth and fifth districts. Teodoro distinguished DND/OCD response work from rehabilitation funded through the responsible agencies under DBM direction. He said he had returned the Kanlaon rehabilitation plan for insufficient detail, with land acquisition outside affected areas central to relocation. OCD-NIR was to coordinate with OCD Central and press the other agencies for action. Ferrer described damaged bridges forcing students to cross a river and bridge proposals he said had only reached the 2027 DPWH NEP after two years. Teodoro said such local detail was missing from the returned plan and that coordination with LGUs would continue; no repair timetable was given.

Engineering brigades, base development and disaster work: Rep. Antonio "Tonypet" T. Albano advocated stronger engineering brigades and additional funding for disaster mitigation and rehabilitation, asking about a Marshall Plan-style effort. DND Secretary Gilberto C. Teodoro Jr. emphasized the shift to combat engineering, including emergency bridging and demining, and said diverting equipment to non-AFP work had harmed base development. He described all-weather, heavy-duty access to strategic bases as serving resupply, military presence and the wider economy. Albano reiterated his support for disaster-related engineering funds; the exchange did not settle a new allocation or program.

Drone systems and limited disclosure: Albano requested an update on the drone program and expressed support for it. Teodoro said DND was building its framework, backbone and control systems, stressing that payload and purpose mattered more than the drone platform alone. He said capabilities already existed but would disclose no further details beyond their place within the AFP engagement framework. No timetable or specific procurement or deployment was disclosed.

Budget support and a district-meeting request: Rep. Isidro T. Ungab said he had no question and expressed support for the DND and AFP budget. He requested a three-minute meeting with the DND chief and Chief of Staff about a district concern, for which he had prepared a summary. No substantive details or outcome of that concern were discussed, and the exchange did not record agreement to the meeting or committee approval of the budget.

Earthquake readiness and critical connectivity: Rep. Salvador A. Pleyto asked DND and OCD to assess Bulacan and other densely populated, flood-prone areas' readiness for a major earthquake, including communications, rescue assets and evacuation logistics when civilian infrastructure fails. DND Secretary Gilberto C. Teodoro Jr. described a meeting with telecommunications, power and other critical-infrastructure providers on resilience and business continuity. He said he had approved JICA papers for Cabinet processing to revisit the circa-2003 Metro Manila earthquake impact study, with DOST as the agreed lead institution. He said AFP could operate but blocked thoroughfares could leave access dependent on aircraft, and distinguished Manila Trench tsunami risk from West Valley Fault ground and connectivity damage. The updated study and specific readiness assets were not presented as completed or newly funded.

Flood-resilient access and pre-positioned assistance: Teodoro said recurrent flooding required science-based engineering across river systems and transport connections, potentially including a new elevated carriageway. He undertook to raise the concern at NDRRMC and NEDA level, not to approve a particular project. Pleyto commended military airlift and sandbagging assistance, endorsed pre-positioning assets before disasters, and expressed support for the proposed 2027 DND budget; this was his support statement, not committee budget approval.

Prioritized requests for possible budget restoration: Rep. Mikaela Angela B. Suansing asked which critical DND and attached-agency programs omitted from the NEP should be considered for restoration in the House General Appropriations Bill. DND Secretary Gilberto C. Teodoro Jr. identified reduced capital outlays, including infrastructure needed to support incoming equipment and extension and restoration of the department's aging, vacated building. He said further needs would be communicated through an undersecretary. Suansing requested a formal, prioritized letter for the Budget Amendments Review Subcommittee within the week; Teodoro agreed to that deadline. She described forthcoming line-by-line consideration and support for restoration subject to limited fiscal space. No requested item or amount was approved or restored during this exchange.

Briefing termination and committee suspension: Rep. Salvador A. Pleyto moved to terminate the DND budget briefing, including attached agencies. Presiding Rep. Bella Vanessa B. Suansing stated that the motion was moved and seconded and declared it carried. After DND's thanks, Pleyto moved to suspend proceedings at Romualdez Hall until August 26, 2026, at 9 a.m. Rep. Bella Vanessa B. Suansing stated that the motion was moved and duly seconded and declared that suspension and resumption schedule. These procedural actions ended the briefing; they did not approve or enact an appropriation.