FY 2027 General Appropriations Bill Day 7 Part 1

Office of the President (OP): For fiscal year 2027, the Office of the President (OP) proposed National Expenditure Program (NEP) allocation was ₱10,155,758,000, inclusive of retirement and life insurance premiums; a separate original request to the Department of Budget and Management (DBM) was not stated. House Committee on Appropriations Senior Vice Chair Representative Albert S. Garcia presented it as about 0.14% of the ₱7.2 trillion national budget. By allotment class, the proposal comprised ₱7.46 billion for maintenance and other operating expenses (74%), ₱1.86 billion for personal services (18%), and ₱839.66 million for capital outlay (8%). By program, general administration and support received ₱2.74 billion and operations ₱7.41 billion; the four operations programs were Presidential Oversight (₱5.37 billion), Executive Staff Service (₱1.63 billion), Advisory (₱184.6 million) and Legal and Legislative Services (₱180 million). The special provision requires quarterly financial and physical reports within 30 days after each quarter, online posting, and notice to both houses and their appropriations and finance committees.

On the sponsor’s comparable basis, excluding retirement and life insurance premiums and pension, the FY2026 allocation of ₱28.03 billion fell to ₱10.08 billion in FY2027, a stated ₱17.95 billion (64.02%) decrease. Garcia attributed about ₱17.55 billion to completed FY2026 locally funded projects, principally Association of Southeast Asian Nations (ASEAN) 2026, and a further ₱392.52 million (3.75%) regular-program trim. The separate FY2027 NEP proposal should not be conflated with a distinct original agency request.

The confidential and intelligence funds (CIF) exchange addressed several scopes. Representative Antonio L. Tinio cited proposed FY2027 government-wide CIF of ₱10.77 billion and OP CIF of about ₱4.5 billion, or 45.22% of the OP FY2027 budget. His historical comparisons were government-wide CIF below ₱2 billion in 2001–2016, almost ₱6 billion in 2017 and ₱12.120 billion in 2025; for the OP he cited ₱2.8 billion through 2016 and a 54% share of its budget in 2020. Garcia described the aggregate under discussion as ₱11 billion plus, about 0.15% of the national budget; the exchange does not reconcile that description with Tinio’s separate agency and government-wide figures. Tinio also cited a prior Department of Justice (DOJ) disclosure he described as a ₱700 million CIF breakdown: ₱500 million for witness protection, ₱10 million for the Interagency Council Against Trafficking, ₱475,000 for the Office of Cybercrime and ₱5 million for a center he described as addressing online sexual abuse or exploitation of children.

The Local Government Support Fund (LGSF), distinct from the OP’s own allocation, was compared at ₱16.08 billion in the FY2026 NEP and ₱57.8 billion in the FY2026 General Appropriations Act (GAA); the FY2027 proposed NEP amount was ₱58.5 billion, with no separate original request stated. Tinio cited reported releases of ₱500 million to Naga City (later described as more than ₱500 million), ₱500 million for a Lipa City multipurpose building and ₱30 million or less for most Financial Assistance to Local Government Units recipients; these were his distribution examples. Representative Renee Louise M. Co characterized Barangay Development Program support as ₱5 million per barangay while challenging its safeguards; Garcia promised documentation, without confirming a separate appropriation in that exchange. Representative Sarah Jane I. Elago asked whether the ₱39 million in FY2027 maintenance and other operating expenses for the Office of the Presidential Adviser for Marawi Rehabilitation and Development (OPA-MRD) covered consultation with displaced Marawi residents and requested a breakdown; Garcia gave the amount, and no breakdown was supplied in that exchange. A ₱125 billion FY2027 block grant for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) was also discussed, outside the OP allocation.

Representative Edgar R. Erice, said the Office of the President’s proposed budget represented a 64% reduction from its 2026 allocation and considered a ₱4 billion intelligence and confidential fund justified in light of the West Philippine Sea situation.

Presidential Management Staff (PMS): For the Presidential Management Staff (PMS), neither the FY2027 National Expenditure Program (NEP) allocation nor a separate original agency request was stated during consideration. Minority Leader Marcelino C. Libanan moved to terminate PMS interpellation and debate, the Majority joined, and Deputy Speaker Francisco Paolo P. Ortega V approved the joint motion without objection. The disposition ended debate; it did not state an appropriation amount.

Presidential Communications Office (PCO): Vice Chairperson and sponsor Representative Alexandria “Queenie” Gonzales presented a proposed FY2027 National Expenditure Program (NEP) allocation of ₱2.62 billion for the Presidential Communications Office (PCO) and its attached agencies and corporations. A separate original request was not stated. Minority Leader Marcelino C. Libanan moved to terminate interpellation and debate; the Majority joined, and Deputy Speaker Francisco Paolo P. Ortega V heard no objection and approved the joint motion terminating interpellation and debate on the proposed PCO budget, including its attached agencies and corporations. This disposition did not approve the appropriation.

Commission on Higher Education (CHED): The Commission on Higher Education (CHED) FY2027 National Expenditure Program (NEP) proposal was ₱35.45 billion, inclusive of automatic appropriations, compared by the sponsor with a current FY2026 level of ₱48.27 billion; she described the decrease as ₱12.9 billion or 26.7%. A separate original agency request to the Department of Budget and Management (DBM) was not stated. Representative Renee Louise M. Co asked about CHED’s formula for subsidies to State Universities and Colleges (SUCs) and local universities and colleges (LUCs). Co relayed DBM’s description of a revised method using projected enrollment and average growth over the prior three years. Sponsor Representative Monique Yazmin Maria Q. Lagdameo described a study attributed to SGV intended to provide a standard measurable basis, with cost of attendance and faculty-to-student ratios included. Lagdameo promised Co the study, CHED’s normative-budget computation and requested information. Current Free Higher Education (FHE) rates were ₱5,565 per SUC student per semester and ₱7,154 per LUC student per semester.

Co attributed a historical ₱12,307,136,000 deficiency across 113 SUCs to erroneous past calculations and said it was nearly fully addressed. Lagdameo reported claims for academic years 2022–23, 2023–24 and 2024–25 were available for pickup by 79 of 108 SUCs, with compliance still required for others; because the prior special provision ended with 2024–25, the first semester of 2025–26 was excluded. For remaining gaps, Lagdameo estimated ₱5 billion for FY2025–26 and ₱2.8 billion for FY2027. Co recalled an earlier ₱15 billion funding call and later supported ₱4,971,881,000 for FY2025–26 and ₱2,766,216,000 for the projected FY2027 gap; these were supported requests, not adopted appropriations.

For standardizing SUC subsidy fees, Lagdameo described alternative estimates of ₱53.7 billion in the study attributed to SGV and ₱29.6 billion in the DBM estimate, separate from the ₱4.230 billion CHED leveling-up option to set ₱250 per unit for 106 SUCs below that threshold. A separate 5% option for seven other SUCs was estimated at ₱87.4 million. Representative Antonio L. Tinio supported leveling up; no option was adopted in the exchange. He also proposed an initial 0.1% budget share for persons with disabilities across agencies, using a ₱7.2 trillion national budget and stating a resulting ₱7.2 billion; this remained a proposal. Representative Dadah Kiram Ismula cited a FY2027 curriculum-integration request; its precise amount is unclear. Representative Percival “Perci” Cendaña asked that the Philippine General Hospital (PGH) FY2027 allocation be restored to its FY2026 General Appropriations Act (GAA) level after a stated ₱805 million reduction; the request was left for consideration.

State Universities and Colleges (SUCs): SUC sponsor and Committee on Appropriations Vice Chairperson Representative Karl Fernandez Legazpi presented the proposed FY2027 National Expenditure Program (NEP) allocation for State Universities and Colleges (SUCs), including the University of the Philippines (UP) system, at ₱141.09 billion, ₱6.1 billion or 4.5% above the FY2026 NEP; a separate original overall request was not stated. Representative Renee Louise M. Co asked how capital-outlay cuts and limited fiscal space affected projects, describing an 80–90% decrease. Legazpi attributed phased and incomplete locally funded projects to fiscal constraints, said project status varied, and promised consolidated status data. Co relayed a request to restore ₱7.6 billion cut from 49 SUCs, fill FHE deficiencies, and fund an ₱11 billion capital-outlay wish list; she proposed questioned flood-control projects described as ₱107 billion as a potential source. These were proposed amendments, not budget actions. Representative Sarah Jane I. Elago supported filling a stated ₱5.3 billion FHE deficiency and restoring SUC maintenance and other operating expenses (MOOE), capital outlay and personal-services capacity. Representative Sergio C. Dagooc also called for increased or restored funding for Caraga State University and Surigao del Norte State University without stating an amount.

Tinio recalled a prior congressional addition of ₱12 billion for 2022–2025 FHE deficiencies. For FHE, Legazpi reported a combined FY2026–27 deficiency of ₱5.321 billion and then gave ₱2.048 billion for FY2026 and ₱2.766 billion for FY2027; Representative Antonio L. Tinio expressed support for ₱5.32 billion. The combined figure and annual breakdown do not reconcile arithmetically. Representative Audrey Kay T. Zubiri separately described a ₱43.82 billion proposed Universal Access to Quality Tertiary Education amount, with ₱27.44 billion (62.61%) for FHE, and a projected FY2027 shortfall of about ₱2.8 billion. She cited a ₱506 million FY2025 remaining balance and a ₱2.048 billion FY2026 shortfall; Legazpi confirmed her approximate ₱5.3 billion total. In a later answer he referred to a ₱2.9 billion FY2025 funding deficiency, unreconciled with the earlier balance and total. He said the shortfall affected computers, classrooms, laboratory equipment, engineering software, smart-classroom kits and research-publication support, rather than SUC jobs. Bukidnon State University was said to have about ₱60 million in balance and an expected ₱23 million incoming FY2027 deficiency. Legazpi said CHED was still studying a composite-fee formula that might guide subsidy adjustments. Zubiri compared ₱140.201 billion in regional-development-council-endorsed capital-outlay requests with ₱6.36 billion included in the FY2027 NEP, describing a 59% decrease and less than 6% of the requested amount. The Department of Budget and Management’s explanation for reduced capital outlay was that many locally funded projects had been completed and funded in the existing national budget, so their funding was not continued while other agencies’ needs were prioritized. Zubiri identified the University of Science and Technology of Southern Philippines in Cagayan de Oro among 12 SUCs with no capital-outlay allocation; she separately cited 46 SUCs with no increase in FY2027 FHE. Legazpi said the Philippine Association of State Universities and Colleges (PASUC) would provide requested lists. Legazpi distinguished 12 SUCs with no capital-outlay allocation from 25 without infrastructure projects and promised both lists; having no infrastructure project did not mean having no capital outlay.

Tinio cited MOOE cuts at 58 of 113 SUCs, a ₱250-per-unit leveling-up proposal adding ₱4.2 billion for all SUCs, and reductions of ₱1.9 billion at UP, ₱66 million at Eastern Samar State University, ₱50 million at West Visayas State University, ₱39 million at Rizal Technological University, ₱32 million at Bicol University, ₱26.3 million at the Polytechnic University of the Philippines (PUP) and ₱20 million at Don Mariano Marcos Memorial State University. He supported restoring the 20% cut from SUCs’ FY2027 NEP MOOE requests; no restoration was approved. He said the Department of Education had directed SUCs to return 20% of MOOE during the energy emergency and reported faculty and staff feared the cuts would leave no savings for collective-negotiation-agreement (CNA) incentives. Zubiri said the Philippine Association of State Universities and Colleges would provide the no-increase and capital-outlay lists.

Institution-specific requests remained separate in scope. Representative Dadah Kiram Ismula reported ₱106 million in unreleased FY2025 PUP capital outlay, then Legazpi clarified that the ₱164 million under FY2026 had not been implemented because bidding failed; a further ₱500 million was needed to complete the North Wing. Legazpi said PUP would continue coordinating with the Department of Public Works and Highways and update Congress; Ismula asked that students also be kept informed. Representative Elijah Rumbaoa San Fernando cited a ₱3.646 billion proposed FY2027 PUP budget, including ₱2.572 billion for its Higher Education Program. He compared this with about 100,000 students: ₱36,000 in total funding and ₱25,000 for the program per student, which he said was 40% below the national average and about one-third of average per-student funding for National Capital Region SUCs. Legazpi cited PUP tuition of ₱12 per unit and said a funding-formula adjustment was being pursued. For separate-charter campuses, San Fernando cited a ₱559 million FY2027 request for MOOE and capital outlay versus ₱24.9 million in the FY2027 NEP/GAB for MOOE alone; the scopes differ. Restoration of 20% MOOE cuts and added capital support remained requests.

Representative Roberto Nazal asked how the Doktor Para sa Bayan program covered qualified applicants and participating SUCs’ capacity. Legazpi reported ₱1 billion in program funding, 3,301 scholars, 1,470 available slots and 316 prior unfilled slots, totaling 1,786 for school year 2026–27; he promised comparative capacity data. Nazal proposed redirecting the proposed ₱1.5 billion Bagong Pilipinas Merit Scholarship allocation first to qualified solo-parent dependents and Doktor Para sa Bayan scholars, or seeking an additional source from the Higher Education Development Fund (HEDF); no amendment was adopted. When Nazal asked whether available savings could legally augment deficiencies, Legazpi said DBM was not present and promised to explain possible funding sources. Nazal also requested a funded completion plan with deadlines for each SUC and priority for unfinished buildings. Legazpi confirmed Secretary Dizon’s reported ₱1.5 billion PUP project commitment but said it was not in the FY2027 NEP.

Department of Energy (DOE): The Department of Energy (DOE) sponsor, Representative Arnie B. Fuentebella, presented a ₱55.2 billion proposed amount for DOE and attached corporations, including national-government support and corporate operating budgets; it is not the DOE appropriation alone. The overall original request was not stated. Separately, Representative Iris Marie Demesa Montes cited a ₱5.58 billion FY2027 DOE budget; the exchange does not reconcile this differently scoped account with the sponsor’s combined amount. Montes said renewable-energy funding was ₱165.12 million in FY2027 against ₱193.1 million in FY2026, a 14.5% reduction, while conventional-energy funding rose 88%.

Fuentebella sought additional DOE funding for regulatory enforcement, distribution improvements, systems-loss reduction and generation-company audits, power-plant reliability checks, cybersecurity and automation, petroleum-product testing, structural repairs and emergency response. He also sought support for Electric Vehicle Industry Development Act implementation in Bataan, a quantum-safe data infrastructure, and a special provision for government fleet electrification and renewable-energy vehicles. Separately, he asked Congress to restore the National Electrification Administration (NEA)’s original proposed budget, without stating its amount, to fund rural electrification targeting 651,843 households and 267 off-grid Department of Education (DepEd) schools by 2028; he sought electric-cooperative capital support and an NEA special provision.

Representative Sarah Jane I. Elago asked about nearly three million households without electricity, including the number in geographically isolated and disadvantaged areas; Fuentebella offered to submit detailed data. On the current-population basis he described, he estimated ₱67 billion would be needed to reach the electrification target by 2033. Elago also cited the Commission on Audit’s reported ₱81.3 million accumulated in the ₱300 million statutory Gasoline Station Training and Loan Fund as of December 31, 2024, and asked DOE to address difficult application requirements. Fuentebella said no one had applied and offered outreach to encourage applications; Elago urged review of the requirements. The exchange records no commitment to revise them.

Representative Sergio C. Dagooc proposed future special provisions allowing NEA to use total-electrification methods beyond line extensions, including community battery storage with dedicated charging and a requirement that storage facilities have their own solar or wind supply so they would not add transmission load. These proposals were for consideration and were not adopted.

Rep. Renee Louise M. Co: Barangay Development Program eligibility, safeguards and per-barangay funding. Rep. Renee Louise M. Co, the interpellator, asked how the Office of the President (OP) determines which barangays qualify for the Barangay Development Program (BDP), given that the President chairs the National Task Force to End Local Communist Armed Conflict (NTF-ELCAC). Rep. Albert S. Garcia, the OP sponsor, said local peace and order councils, local governments and national agencies validate an area’s insurgency-free status from the ground up, with referrals proceeding through regional and national levels before the barangay becomes eligible for BDP support. He listed completion of the Community Support Program (CSP) and Department of the Interior and Local Government (DILG)’s Retooled Community Support Program (RCSP), a functional Integrated Territorial Defense System (ITDS) and barangay institutions, and an implemented three-year Peace and Order and Public Safety plan. He said the barangay development council formulates the plan with the community, with support from the local and national governments. Garcia described the approach as holistic, covering economic and social development alongside peace and order.

Co pressed for operational criteria beyond frameworks and signatures, including how national agencies verify clearances and how plans and barangay security systems work in practice. She questioned whether the process could amount to automatic approval, and argued that roads and schools should be funded through agencies with those mandates. She also raised reports of student leaders being questioned about political views and organizations, warning that conditional BDP support could infringe constitutional rights and freedoms. Garcia said the listed parameters were the process and promised to submit further documentation on their on-the-ground operation. Co said her concern remained that the conditions could impair those rights.

Critical minerals agreement and Executive Order 122. Co then questioned the February memorandum of understanding (MOU) on critical minerals between the Philippines and the United States and its relationship to Executive Order 122 establishing a Critical Minerals Framework. She asked why the Department of Environment and Natural Resources (DENR) secretary signed the MOU and whether the President’s Office cleared DENR to enter it. Garcia said the President signed the executive order and DENR’s secretary signed the MOU because mining falls under the department’s jurisdiction; he confirmed presidential clearance and characterized the MOU as exploratory and non-committal.

Garcia said the Executive’s position was that processing minerals domestically could add value to raw materials and bring higher value and more revenue to the country. Co supported mining serving the public and national interest but argued that the arrangement could prioritize opportunities for the United States, including a first opportunity to develop resources. Garcia restated the Executive’s expected public benefit. Co maintained her criticism of the MOU and its implementation through the executive order, then yielded the remaining time without further questions.

Rep. Sarah Jane I. Elago: Fuel-tax relief and cost pressures. Representative Sarah Jane I. Elago of Gabriela Women’s Party asked why the administration had suspended excise taxes on liquefied petroleum gas and kerosene while leaving taxes on diesel, gasoline and other petroleum products in place. She cited the law’s emergency authority when Dubai crude reaches US$80 per barrel. Sponsor Representative Albert S. Garcia said the Executive was awaiting a Department of Finance (DOF) recommendation and expected it within days. Elago pressed for a date, arguing that fuel costs were feeding transport and food prices and that diesel had reached about ₱100 per liter. Garcia said the recommendation would probably reach the Office of the President (OP) within the week, with an announcement likely early the following week; he added that the OP was assisting farmers, transport groups, fishers and other vulnerable sectors. Elago said subsidies did not reach everyone and were insufficient, and urged use of the emergency power for all petroleum products, consideration of value-added tax relief on essentials, and passage of a price-reduction bill.

Minimum wage and family living costs. Elago questioned whether the OP would endorse a national minimum wage tied to a living wage. Garcia offered to submit a chart comparing minimum-wage increases with inflation, saying wages had risen more and that the gap had widened over time. Elago remained concerned that minimum wages were below the poverty threshold she said had been reported by the Department of Economy, Planning, and Development (DepDev) and the Philippine Statistics Authority (PSA). She challenged the threshold as unrealistic, citing a food allowance of ₱26 per meal in the National Capital Region (NCR) and ₱22 to ₱23 outside NCR, and said workers considered these amounts insufficient for families. She renewed the call for a national minimum wage aligned with living wages, which she put at ₱1,200 to ₱1,300 per day.

Humanitarian clemency and migrant-worker protection. Elago asked what concrete steps the OP was taking to secure Mary Jane Veloso’s release, noting her prolonged separation from her family and describing her case as trafficking and forced drug-mule exploitation. Garcia said the OP was seriously considering an absolute pardon on humanitarian grounds and in support of protecting women and Filipino migrant workers. When Elago asked when the consideration would conclude, Garcia said an announcement would come in a few days. Elago welcomed the prospect and urged broader action against trafficking, stronger migrant-worker protection and jobs with living wages.

Marawi rehabilitation, housing and community consultation. Elago asked how the Office of the Presidential Adviser for Marawi Rehabilitation and Development (OPA-MRD), established under Executive Order No. 78 to coordinate government rehabilitation and development programs, would help secure permanent housing for internally displaced people who had not returned or remained in temporary shelters. Garcia pointed to the recent Bangsamoro elections and said coordination between newly elected local officials, the national government and the President could accelerate Marawi development and housing. Elago asked whether OPA-MRD had consolidated implementing-agency reports on program status, delays, catch-up plans and assets, particularly for permanent housing and return. Garcia said a consolidated report existed and would be submitted.

Elago also asked about the terms and documents for the housing arrangement involving the Marawi Compensation Board and National Housing Authority for claimants in four barangays, and sought clearer guidance on claimant participation and compensation or reparation. Garcia undertook to submit the requested OP reports and said engagement with the communities would become clearer with the new local mandate; he hoped housing could soon be turned over. Elago sought prompt consultation with Marawi internally displaced people so they could hear the rehabilitation plan and funding directly. Garcia agreed to more intensive dialogue with local communities.

Rep. Antonio L. Tinio: CIF transparency and standing request. Tinio asked what activities justified the OP CIF and how much went to each function. Garcia said the intelligence fund served national security and the confidential fund peace and order, and named work involving the Presidential Anti-Organized Crime Commission, NTF-ELCAC, Philippine Center of Transnational Crime and Anti-Terrorism Council. He said the OP’s CIF had an unmodified COA opinion specific to those funds and an up-to-date credit notice, and that reports were submitted to COA, the Office of the Speaker and the Senate. Garcia declined to provide a public program-level breakdown, citing the sensitive nature of the funds. Tinio then pointed to the GAA’s quarterly accomplishment-report requirement to the President and both Houses and asked where members could access the OP reports. Garcia said the House copy was submitted quarterly to the Speaker’s office and treated member access as an internal matter for the House to deliberate. After the session resumed, Tinio left a standing request for copies for members and said he would not press the matter further in his interpellation. Presiding Deputy Speaker Janette L. Garin said Garcia, through the OP, could comply within the bounds of House rules.

LGSF allocation criteria and legal disagreement. Asked who decided which LGUs received assistance and in what amount, Garcia said the LGSF was a congressional appropriation implemented by the executive and the DBM under guidelines, through a demand-driven application portal, and that Supreme Court decisions supported its constitutionality. Tinio argued that the Administrative Code required presidential approval of special budgets for lump-sum appropriations, including the LGSF. Asked whether releases had that approval, Garcia relied on the GAA and a DBM circular as the legal basis without directly confirming presidential approval. Tinio took this as a no and maintained that the GAA did not expressly repeal or amend the approval safeguard.

Flood-control corruption allegations and investigations. Tinio asked whether the OP was investigating allegations connected to flood-control insertions and kickbacks. Citing a Senate account by Senator Lacson and statements he attributed to Yusek Bernardo, Tinio described ₱100 billion in allocations, including ₱81 billion assigned to DPWH and ₱29 billion to other agencies. He said the account attributed personal handling of ₱51.01 billion (which he retold as almost ₱52 billion) to Bernardo. Tinio recounted allegations of an ₱8 billion kickback, an additional ₱1 billion delivery to a Cabinet official, a ₱9 billion total as he summed those claims, and an initial 15% arrangement for the President; he also described the alleged ₱8 billion as 16% of ₱81 billion. These were allegations recounted by Tinio, not findings established in this exchange. Garcia said the OP was not aware of the details Tinio cited and that investigations were being conducted by the Senate Blue Ribbon Committee, the Ombudsman and the Department of Justice. Tinio disputed the response, asserting that the President had received Bernardo’s handwritten account and that the allegations involving him had not been investigated.

Rep. Edgar R. Erice: Economic growth, borrowing and deficit trajectory. Rep. Edgar R. Erice asked how the administration would lift public spending and economic growth, lower inflation, manage rising national debt, and address borrowing and maturing loans in the FY2027 budget. He cited inflation at about 6% and said the government was about to borrow ₱1.69 trillion, alongside ₱1.6 trillion for maturing loans.

Rep. Albert S. Garcia, the OP sponsor, pointed to timely passage of the budget and efforts to attract foreign direct investment as supports for growth, along with work to address the energy crisis. He said the OP expected the economy to return to its pre-crisis growth trajectory of 5% to 6% of GDP. On fiscal management, Garcia first referred to a falling debt-to-GDP ratio, then corrected the metric: the deficit-to-GDP ratio was 5.6% last year, 5.4% this year and projected at 4.8% by 2028. He said that trajectory would also bring the debt-to-GDP ratio down by 2028.

Kadena Act and anti-political-dynasty legislation. Erice asked whether the President would declare the Kadena Act urgent, noting pending bills in the House and Senate. Garcia said the administration had begun digitizing government spending through the Centralized Open Monitoring Platform for Appropriation and Spending Statistics (COMPASS), described it as a first step toward Kadena, and said the President supported the legislation, which was among the administration’s priority legislative executive agenda. His reply established support and legislative priority rather than announcing an urgent certification.

Erice then asked whether the President would declare the anti-political-dynasty bill urgent, noting House passage and Senate passage on second reading. Garcia relayed the Executive Secretary’s call for both chambers to pass the measure and said the President strongly supported it; the reply likewise expressed support.

Metro Manila regional government proposal. Erice said Metro Manila’s linked problems of waste, traffic, housing and land use needed a solution and cited the region’s contribution of 36% of national GDP. He asked whether the President would support an elected metropolitan government under the Constitution’s provision for a special metropolitan political subdivision subject to a plebiscite. Garcia said the Executive Secretary had not discussed the proposal with the President, but personally thought it was a good idea. This was the Executive Secretary’s view, not a stated presidential position.

Disposition and written follow-up: Disposition and written follow-up. After the minority moved to end discussion of the Office of the President’s proposed budget, the majority joined the motion. With no objection, Deputy Speaker Janette L. Garin carried it and declared interpellation terminated. Minority Leader Marcelino C. Libanan then said Rep. Elijah Rumbaoa San Fernando still had questions but would submit them in writing because of time. Libanan moved to have the questions entered in the journal and asked that the Office of the President provide written answers. The motion was approved; Garin directed the Secretary-General to enter San Fernando’s questions into the record and requested written responses from the Committee on Appropriations through Senior Vice Chair Representative Albert S. Garcia.

Consideration and disposition: Consideration and disposition. Rep. Ma. Alana Samantha Taliño Santos, for the Majority, recognized Minority Leader Marcelino C. Libanan to interpellate. Libanan said there was no Minority interpellator and moved to terminate the PMS interpolation and debate period. Santos joined the motion for the Majority, and Deputy Speaker Francisco Paolo P. Ortega V approved the joint motion without objection. The disposition ended interpellation and debate.

Presidential Communications Office (PCO): Government communication and misinformation. PCO sponsor Rep. Alexandria “Queenie” Gonzales described the PCO as the government’s lead communications arm, responsible for timely, accurate and accessible information about policies, programs and services. She said that social media now spreads information and misinformation, disinformation, manipulated content and AI-generated material within seconds, and argued the PCO must communicate credibly across digital, broadcast and community platforms. She said the proposed budget would support the PCO and attached entities in fulfilling their mandates and strengthening government communications.

Consideration and disposition. After Gonzales said she was ready to answer questions, Minority Leader Marcelino C. Libanan said no Minority member wished to interpellate and moved to terminate the period for interpellation and debate. Rep. Ma. Alana Samantha Taliño Santos joined the motion for the Majority. Deputy Speaker Francisco Paolo P. Ortega V heard no objection and said the budget of the PCO, including attached agencies and corporations, was “now approved.” No interpellation occurred.

Commission on Higher Education (CHED): Mandate, access and quality priorities. CHED sponsor Rep. Monique Yazmin Maria Q. Lagdameo said CHED’s mandate is to promote accessible, quality and relevant higher education. She said the proposed budget would support higher education institutions, opportunities for deserving students, research and innovation, and responsiveness to changing national needs. She described CHED’s functions as developing higher education plans and policies, setting standards and administering the Higher Education Development Fund. She emphasized expanding access while protecting quality, strengthening scholarships and student assistance, supporting research and emerging fields, and addressing regional disparities. She submitted the proposed FY2027 budget for consideration and urged its approval.

Rep. Renee Louise M. Co: Off-campus activities and evolving guidelines. Co asked whether CHED’s 2017 off-campus-activity rules remained in force after two student-athletes died during an off-campus activity. Lagdameo said CHED had issued Memorandum Order No. 13, series of 2026, on student-athlete protection, revised June 1, 2026, and was also revising the general off-campus-activity guidance. She said the general revision was scheduled for orientation; it had no memorandum number yet at the CHED en banc approval/signature stage, and CHED was willing to share a draft.

Co said the earlier rules’ parental consent, medical clearance and after-report requirements had contributed to cancellations and postponements that limited student participation. Lagdameo said nationwide student consultation was informing less stringent guidance while balancing student needs with school activity oversight and safety. Co welcomed a chance to review and provide input while preserving athlete safety.

Academic freedom and student affairs. Co put on record reports of censorship, red-tagging, pressure that halted activities, and surveillance of students, and urged CHED to consider such cases in its student protections. Lagdameo said CHED must balance student input with campus rules and faculty responsibilities, pointing to Memorandum Order No. 18, series of 2026, on student affairs and services. Co welcomed that framework for student-affairs offices but cautioned that balancing must protect students’ constitutional rights and academic freedom, as well as faculty freedom and institutional autonomy.

Rep. Elijah Rumbaoa San Fernando: Tuition-fee review and academic workers’ share. Representative Elijah Rumbaoa San Fernando of Kamanggagawa Party-list said the Council of Teachers and Staffs of Colleges and Universities of the Philippines (COTESCOOP), the Commission on Higher Education (CHED), the Department of Labor and Employment (DOLE) and other relevant agencies had held a dialogue the previous day about concerns he raised during committee-level budget deliberations. He said CHED and COTESCOOP agreed to form a technical working group to review the existing CHED memorandum order governing tuition-fee increases (TFIs). CHED sponsor and Appropriations Vice Chair Rep. Monique Yazmin Maria Q. Lagdameo confirmed the agreement. San Fernando welcomed the review, citing Republic Act 6728 and saying 70% of tuition-fee increases should go to academic-sector workers, a long-standing workers’ demand that private higher education institutions had evaded. He described the technical working group’s inclusion of COTESCOOP as a positive step.

Private-college probation and inclusive review. San Fernando urged review of the Manual of Regulations for Private Higher Education Institutions (MORPHE), arguing that its provisions conflicted with the Labor Code’s six-month probationary limit. He said teachers and workers in private higher education institutions could instead serve six consecutive semesters, or three years, and asked CHED to review the manual promptly. Lagdameo replied that CHED had completed a workshop on the issue and that it was now under discussion, with the aim of aligning the policy with government rules. San Fernando welcomed the action and asked CHED to keep COTESCOOP, other stakeholders and workers included and notified during reviews of existing memorandum orders. Lagdameo said the process would remain open and inclusive.

Rep. Percival "Perci" Cendaña: Live names at commencement and official records. Cendaña said the Polytechnic University of the Philippines (PUP) had committed to using students’ live names at commencement, as had several other higher education institutions. He asked whether the Commission on Higher Education (CHED) would consider a policy issuance for live-name recognition across higher education. CHED sponsor Representative Monique Yazmin Maria Q. Lagdameo said CHED saw no legal impediment and was open to discussion, while explaining that official records would retain names from students’ birth certificates. Cendaña accepted that limitation on official records, said he had filed a bill to make changes to government records easier, and urged institutions to recognize students’ live names at graduation as an act of inclusion.

Batangas State University harassment report and CHED response. Cendaña reported that a transgender woman at Batangas State University’s Lipa Campus had been harassed at the gate on September 8: he said a security guard made her remove her bra in front of classmates under the university’s dress-code policy. He said LGBTQIA+ organizations in Batangas had reported similar experiences and argued the incident raised wider policy concerns. Cendaña cited Batangas Province’s anti-discrimination ordinance and the Safe Spaces Act, asking how CHED would strengthen implementation. Lagdameo said the university had not reported the incident to CHED, but that CHED would investigate and address it. She pointed to CHED Memorandum Order No. 3, series of 2022, as implementing Safe Spaces Act protections against gender-based discrimination and harassment. Cendaña urged CHED to prevent recurrence; Lagdameo assured him CHED would monitor the situation and make efforts to prevent it happening again. Deputy Speaker Yevgeny Vincente B. Emano then noted that the university’s budget would be taken up shortly.

Rep. Sarah Jane I. Elago: Harassment compliance and campus safeguards. Representative Sarah Jane I. Elago of Gabriela Women’s Party thanked the Commission on Higher Education (CHED) for its submitted report on compliance with the Anti-Sexual Harassment Act and the Bawal Bastos Law. The report covered 918 higher education institutions (HEIs), which Elago said was 46% of the country’s total. She asked whether CHED planned to finish surveying all HEIs and ensure compliance. CHED sponsor Rep. Monique Yazmin Maria Q. Lagdameo said the figures were based on submissions received so far; CHED was awaiting other submissions and would follow up to update the data.

Elago said that among the 918 surveyed HEIs, 67% had functional committees on decorum and investigation, while some were still organizing or completing their committees; she also cited 61 private HEIs without an established committee on decorum and investigation (CODI). She asked whether CHED had a line item to ensure no HEI was left behind in implementing its memorandum on safe spaces. Lagdameo did not identify a specific line item; she said CHED had issued CMO No. 1, CODI training was ongoing, another memorandum would be reissued, and CHED would follow up with noncompliant institutions. She said Visayas was complete, Mindanao training was scheduled for October 6–8, and Luzon was scheduled for November. On consultations for gender- and disability-sensitive rules, Lagdameo first said only Luzon and the National Capital Region remained, then corrected herself: the pending regions were Region 11 and the National Capital Region. Elago had asked about completing consultation with students, faculty and stakeholders; Lagdameo said consultation was underway.

Tuition and other school fees. Elago asked whether CHED still followed its 2012 memorandum on tuition increases and other school fees or had issued newer rules, and how it protected students’ right to education while helping smaller schools continue operating. Lagdameo said consultation with a technical working group and private schools had concluded and the draft was being finalized; she offered to provide Elago a copy if needed. When Elago asked how many schools would increase tuition or other fees this year and next, Lagdameo asked to submit the data instead of giving the figures orally.

Elago urged review of other school fees, saying students faced layered charges and questioning whether the appropriate share of tuition and fee increases reached teachers as higher salaries, benefits and welfare. Lagdameo said these issues were included in the consultative process, with public-school consultation complete and private-school consultation continuing through the working group.

Rep. Antonio L. Tinio: Composite-fee legal basis and adequacy. Tinio argued that the law and its implementing rules do not expressly make a composite fee the basis for higher-education subsidies; he said the rules use it to determine charges for students who do not qualify for or opt out of free tuition. He considered composite fees useful for raising subsidies but inadequate because they measure current attendance costs without covering expansion, infrastructure, personnel and other accumulated resource needs as enrollment grows. Lagdameo answered that Section 55 of Republic Act 10931 provides the basis for using composite fees. She said broader needs remain within limited fiscal space and pointed to an interagency working group examining faculty-to-student ratios, which vary across SUCs and affect budget calculations.

Instructor I pay equity and interagency dialogue. Tinio said an Instructor I in a SUC needs a master’s degree but starts at salary grade 12, while comparable graduate-degree positions elsewhere in government start at grades 16 to 18. He called for a starting grade of at least 16 to recognize instructors’ qualifications and professional standing. Lagdameo said CHED was scheduled to discuss starting pay with the Civil Service Commission (CSC) and DBM; she also cited SUC merit systems and periodic reclassification as advancement routes.

General-education curriculum proposal. Tinio questioned a CHED proposal to reduce general-education requirements from 36 to 18 units. He said at least 250 universities and schools had submitted critical position papers; CHED had suspended the pilot for school year 2026–27. Lagdameo said consultations would continue through the first quarter of 2027, after which CHED would assess the direction. Tinio understood the proposal remained standing during consultation and said his position was that it should be rejected.

Disability access and requested data. Tinio asked whether persons with disabilities, especially deaf students and students at private universities, were receiving the Tertiary Education Subsidy (TES), and whether support covered sign-language interpreters and other accommodations. Lagdameo cited 1,757 PWDs nationwide in response to Tinio’s TES question. Tinio requested regional and disability-category breakdowns, including information relevant to the Deaf community; Lagdameo said she would ask the CHED chair to compile the figures and send a copy, including subsidy amounts.

Rep. Jernie Jett V. Nisay: Graduate employment and labor-market tracking. In the Commission on Higher Education (CHED) round, Representative Jernie Jett V. Nisay cited the June 2025 labor-force survey figure that 50.4% of unemployed people were college graduates, and asked how CHED and labor-market partners were aligning degree programs with employer demand. CHED sponsor Representative Monique Yazmin Maria Q. Lagdameo said CHED had a student-record management system ready for deployment and that employability indicators were being collected from state universities and colleges. Asked whether CHED tracked graduates’ employment, further study and degree-related work, she pointed to CMO 46, series of 2012, which she said requires higher education institutions to conduct graduate tracer studies. Nisay asked whether labor-market data informed curriculum and program changes; Lagdameo said the work was covered by a memorandum of agreement with the Department of Labor and Employment (DOLE) and was underway. When Nisay raised difficulty obtaining regional graduate data, Lagdameo directed him to CHED TA Now, which she said contains graduate status and program information.

Curriculum review and updating. Nisay cited an EDCOM 2 estimate that review and updating of CHED policies, standards and guidelines for bachelor’s programs took an average of 11 years, and asked how curricula could keep up with industry needs. Lagdameo said CHED had 142 program standards and guidelines (PSGs), with 121 undergoing revision, while new programs and other revisions were also being considered; she said evaluation was needed to protect education quality. Nisay then cited EDCOM 2’s report that only 13% of programs targeted for review from 2022 to 2025 had been monitored and asked how many overdue programs CHED aimed to update in 2027. Lagdameo replied that all had been taken into account in the review and again said 121 of 142 PSGs were undergoing revision, without giving a separate 2027 target.

Scholarship timing and non-tuition barriers. Nisay said CHED had reported scholarship beneficiaries waiting two to three semesters for grants, with some students graduating without receiving their TES or TDP benefits, and asked what reforms would deliver support during the academic period when it was needed. Lagdameo said the current CHED chair had pursued an arrangement with Land Bank to speed delivery and reported that 84% of 900,000 scholars already had ATMs. Asked which causes of delay CHED was addressing, she identified direct distribution and said CHED could monitor disbursements and beneficiaries in real time through its digital information. Nisay stressed that tuition coverage leaves transport, boarding, food, books and connectivity costs, and asked about regional dropout data tied to living and education expenses. Lagdameo cited a memorandum of agreement with Pag-IBIG for the Balay program to support accommodation through dormitory construction. She offered to submit the requested regional data. Nisay closed by emphasizing that free tuition does not cover the full cost of college and urged CHED to support students through completion and employment.

Rep. Dadah Kiram Ismula: Indigenous student data, profiling and support. Rep. Dadah Kiram Ismula revisited her prior question about Indigenous Peoples (IP) student dropout data, and asked whether the Commission on Higher Education (CHED) now had enrollment, retention and graduation information. CHED sponsor Rep. Monique Yazmin Maria Q. Lagdameo said CHED had begun gathering information but collection was ongoing. She could report the number of IP scholars: 226 for 2025 and 205 for 2026. Ismula urged CHED to integrate IP information into its data and recalled a commitment to issue a memorandum requiring higher education institutions (HEIs) to submit IP student profiles; her office had not received the memorandum. Lagdameo said CHED had summary enrollment and graduate totals by region and would furnish them to Ismula’s office.

Ismula followed up on release and enforcement of the memorandum. Lagdameo said a memorandum had been issued and that the student records management system now included IP profiling. Asked how CHED ensured its programs and budget reached IP students while data collection remained incomplete, Lagdameo said CHED would enter into memoranda of agreement with LGUs to help monitor, and said IP profiling would help students receive CHED benefits. Ismula requested the memorandum and available IP data. Lagdameo stated that 21,953 IPs across regions were benefiting and promised to share the data.

Disposition: Disposition. After the minority indicated that no further member wished to interpellate, Representative Dadah Kiram Ismula moved to terminate sponsorship, debate and interpellations on the proposed FY2027 budget of the Commission on Higher Education (CHED). Representative Munir N. Arbison Jr. joined the motion for the majority. Deputy Speaker Yevgeny Vincente B. Emano stated that it was a joint motion, heard no objection and declared the interpellations terminated. This closed debate on the proposed budget; the disposition did not approve the appropriation.

State Universities and Colleges (SUCs): Access, quality, and public service. Legazpi linked expanded access through the Universal Access to Quality Tertiary Education program to the need to sustain quality as enrollment grows, including teachers, classrooms, laboratories, equipment, and learning resources. He called for faculty to teach, research, and innovate and for public funding to produce measurable benefits for students and communities. He also described SUCs’ research, professional training, and extension work in the provinces, citing the Philippine General Hospital as an example of service beyond the classroom.

Rep. Renee Louise M. Co: Project delays, DPWH rules, and FHE use. Co asked whether CHED–DPWH guidelines requiring DPWH involvement for projects above ₱5 million had delayed work and constrained SUC fiscal autonomy. Legazpi said there was no memorandum reversing the agreement; UP had moved to complete delayed projects under its own budget, while SUCs were taking over some delayed projects. He agreed to furnish project-status information. On FHE deficiencies, Legazpi said CHED would release a portion and provide institution-level amounts received and outstanding. Co asked whether the funds would cover utility bills and repairs; he said Higher Education Development Fund (HEDF) support served core functions including faculty and institutional development, research, and extension, and promised an itemized report on its use.

MOOE and personnel. Co said operating-expense (MOOE) reductions could affect daily operations, research and development, salaries, and travel, and supported restoring the reduction. Legazpi identified contractual and job-order employees among those affected.

UP SDG Park and stakeholder consultation. Co raised concerns that the UP Sustainable Development Goals Park could displace a settlement and affect agricultural activity, and asked for the status of UP’s review. Legazpi said the revised plan included on-site housing, livelihood, education, health, and arts provisions. Co stressed that relocation still meant displacement and sought stakeholder consultation; the sponsor said the revised plan would incorporate community input.

HRVVMC museum and NSC compilation. Co asked about the Human Rights Violations Victims Memorial Commission (HRVVMC) museum site and schedule. Legazpi said UP chose the original agreed site after consultations; part of the site was already under construction and the remainder was expected to be available by late 2026 or early 2027. He offered the detailed project status and timeline to Co’s office. Co also challenged the National Security Council publication “Target to Threat: The Psychology and Prevention of Terror Grooming” as an unreviewed compilation and asked about the PUP president’s acknowledged participation. Legazpi said the PUP president, who also headed PASUC, would send a written explanation of the president’s role, which Co said she would await.

Rep. Antonio L. Tinio: Job-order and contract-of-service staffing. Tinio said expanding free higher education increased enrollment and faculty needs while new plantilla items were not being added. Legazpi first described around 55,000 job-order and contract-of-service workers as part-time faculty across SUCs, then clarified that the figure included teaching and non-teaching positions. He said there was no current teaching/non-teaching breakdown; PASUC information put teaching positions at 26,000. Tinio advocated new plantilla items and cited 9,000 positions created and distributed to SUCs in 2016—about one-third of the requirement—as a precedent he hoped to repeat.

Instructor I classification and salary-grade reform. Tinio argued that requiring a master’s degree for a plantilla Instructor I position at a SUC while assigning it Salary Grade 12 was inequitable. He compared it with public-sector roles he cited at Salary Grades 16 and 18, and said Instructor I positions across 112 other SUCs remained at Grade 12. He urged raising Instructor I to Salary Grade 16 and adjusting related positions accordingly. Tinio said CHED had committed to meet promptly with DBM and the Civil Service Commission. When asked whether he supported correcting Instructor I’s salary grade, Legazpi said he and his colleagues supported raising the grade and agreed with Tinio’s proposal.

Rep. Sarah Jane I. Elago: Gender and Development allocation and substantive use. Elago asked SUCs to report their compliance with the gender and development (GAD) mandate, including the requirement to use at least 5% of their funds for GAD. Citing the Philippine Commission on Women’s (PCW) 2024 utilization report, she said SUCs spent 6% on GAD. She questioned whether that spending was meaningfully integrated, noting that many activities remained separate observances such as the 18-day campaign against violence against women and National Women’s Month. Elago called for sustained organizational capacity-building and institutional development, with GAD built into SUC programs, stakeholder work and extension services rather than treated as separate events.

CODI compliance, Batangas State University and campus implementation. Citing a CHED report, Elago said 72% of SUCs had fully functional Committees on Decorum and Investigation (CODIs), and asked for reports on all SUCs’ GAD compliance and functioning complaint offices. SUC sponsor Rep. Karl Fernandez Legazpi said CHED would provide its available data and that SUCs were generally compliant based on reports from their presidents. Elago then asked for an update on the reported harassment of a transgender student at Batangas State University (BatSU), Lipa Campus, and said PCW data ranked the university first in total GAD allocation for fiscal year 2024. Legazpi said the BatSU president had promised the incident would not recur, that GAD policies would continue to be implemented through to campus level, and that administrative proceedings regarding security guards allegedly responsible for gender-based violations were ongoing. Elago also asked that students, faculty and education stakeholders be consulted on gender- and disability-inclusive policies. Legazpi said the university presidents had promised consultation with students, parents and teachers. Elago called for sustained gender-sensitivity training across orientation, student organizations, hiring and campus programs, citing the Philippine Normal University and University of the Philippines offices as examples.

Rep. Dadah Kiram Ismula: SUC governance, student protections, and reporting. Ismula asked for compliance data on student representation in SUC governing boards and on committees on decorum and investigation (CODI) for sexual-harassment cases. Legazpi reported 100% student-representation compliance and said SUCs were generally compliant with CODI requirements, offering institution-level details. She requested a report before the General Appropriations Bill (GAB) second reading on support for students with disabilities and priority for students from poor families under the Universal Access to Quality Tertiary Education Act; Legazpi committed to provide it. She also sought data on Indigenous Peoples’ enrollment, dropout rates and performance, and on compliance with CHED’s IP-studies requirement. Legazpi said the Commission on Higher Education (CHED) had information and would furnish her office data, including dropout rates; Ismula said she would await the requested reports before second reading.

Position on SUC funding and safeguards. Ismula said reported proposed budget cuts would affect students’ access to quality education, scholarships and graduation opportunities, and expressed support for increasing SUC funding. She urged SUCs to include students, teachers and staff in governance; protect students from sexual harassment and act on cases; and prioritize Indigenous, rural, poor and otherwise underserved students for free tuition.

Rep. Audrey Kay T. Zubiri: Regional equity and support for under-resourced SUCs. Zubiri asked how capital-outlay funding was distributed among Luzon, Visayas and Mindanao, including Region 10. She argued that smaller, remote and historically disadvantaged schools needed support to catch up, rather than losing out to larger institutions already performing well. She raised the lack of capital-outlay funding at USTP in Cagayan de Oro and said some schools on the list were in Mindanao, far from Manila. Legazpi agreed with the concern, said his home province of Palawan also had schools with no capital-outlay allocation, and described Palawan as a frontier province needing national support. He said PASUC would furnish the lists. Zubiri affirmed her support for CHED and the SUCs and urged the House to fully address FHE needs and provide adequate capital funding, especially for Mindanao schools, so students could access quality education and campuses could maintain facilities.

Rep. Elijah Rumbaoa San Fernando: Campus conditions and statutory-campus funding. Drawing on his PUP experience, San Fernando described crowded, undersized classrooms and inadequate facilities, including broken or ineffective ceiling fans and improvised bathroom equipment. He argued that these conditions affect other SUCs as well and criticized the gap between institutional needs and DBM allocations. He said PUP had 10 campuses with their own statutory charters; he named campuses in Alfonso, Bansud, Cabiao, Leyte, Parañaque, Quezon City, Sablayan, San Juan and Santa Rosa, and Legazpi affirmed the named campuses had their own charters. San Fernando argued that chartered campuses should receive adequate national funding and challenged DBM to see conditions on the ground.

Sponsor response and position on SUC support. Legazpi described PUP as the second-largest-funded SUC in NCR after the University of the Philippines and said he supported increasing its allocation. He linked the gap to the existing tuition-based funding formula and committed to pursuing an increase. San Fernando acknowledged CHED’s efforts but maintained that DBM allocations did not reflect SUC realities; he supported restoring and increasing SUC budgets.

Rep. Roberto Nazal: Solo-parent education benefits and access. Nazal asked how SUCs applied the Expanded Solo Parents Welfare Act, including to dependents outside 4Ps, and whether qualified applicants were turned away for lack of scholarship funding. Legazpi said children of solo parents receive admission prioritization under universal access, but that no dedicated budget or reserved slots are set aside for them; SUCs also report affirmative-action practices such as daycare centers. He said the SUCs did not yet have data on applicants and unmet need, but committed to provide it early the following week. Nazal sought a commitment to accommodate qualified dependents, including non-4Ps beneficiaries, subject to admission and scholarship requirements. Legazpi said SUCs would promote local affirmative-action policies through their boards and that CHED had committed to develop a common policy aligned with individual SUC charters.

Scholarship timing, allowances and return service. Nazal asked about delayed tuition, allowances and unpaid benefits for Doktor Para sa Bayan scholars. Legazpi said no multi-year scholar had gone unpaid for a year, acknowledged past release delays affecting allowances, and said there were no current backlogs. He reported that delays had ranged from one month to one semester and committed that they would not recur. Nazal asked whether a temporary SUC fund could bridge future delays. Legazpi said the Doktor Para sa Bayan funding was specifically reserved for scholarships and described early billing statements from the start of each semester as the CHED and SUC presidents’ proposed practice to speed processing. Nazal also requested return-service data for graduates serving communities without government physicians. Legazpi reported 615 graduates and promised further information.

Higher Education Development Fund oversight. In his closing manifestation, Nazal argued that section 11 of Republic Act No. 7722 assigns CHED administration of the Higher Education Development Fund (HEDF) and calls for a reputable government financial institution to manage its portfolio. He opposed the Bureau of the Treasury taking that role, urging implementation of the arrangement he said the law requires so available education resources could address student and infrastructure needs.

Rep. Sergio C. Dagooc: Energy management across higher education. Dagooc urged the Commission on Higher Education (CHED) to place demand-side energy management in curricula across courses, not only electrical or electronics programs, so students learn practical energy use amid supply constraints. SUC sponsor Rep. Karl Fernandez Legazpi said PASUC recommended energy-conservation content in National Service Training Program courses, with energy experts helping develop a curriculum for nationwide implementation. He also described the University of the Philippines’ solar-and-battery net-zero-emissions target for its campuses by 2028 and said CHED wanted to promote the model to other state universities and colleges (SUCs). Dagooc asked that the work extend to senior high school, while acknowledging that senior high was outside CHED’s scope, and suggested electric cooperatives work through the National Electrification Administration to develop learning modules.

Disposition: Disposition. Rep. Sergio C. Dagooc withdrew his earlier motion and corrected it to move to terminate interpellation and debate on the proposed budget of the State Universities and Colleges (SUCs). The Majority joined the corrected motion. Deputy Speaker Yevgeny Vincente B. Emano heard no objection and declared SUC interpellations terminated.

Department of Energy (DOE): Energy resilience and electrification strategy. Fuentebella framed the proposal around energy resilience amid fuel-market, geopolitical, and climate pressures. He pointed to DOE fuel-inventory and market-monitoring measures, renewable and domestic energy sources, and household electrification. He cited DOE’s estimate that its interventions had helped avert electricity-price spikes of ₱7–₱12 per kilowatt-hour, and described NEA’s action plan to reduce technical and nontechnical system losses through anti-pilferage measures, improved collections, meter management and audits, and distribution-infrastructure improvements. He presented the requests as preparation for reliable, affordable, and cleaner energy and for future emergencies.

Rep. Iris Marie Demesa Montes: Renewable-energy targets and implementation data. Montes asked what capacity the Renewable Portfolio Standards, Feed-in Tariff/Green Energy Auction Program, and National Renewable Energy Program had delivered, and how close the country was to the 35% renewable-energy mix target for 2030. DOE sponsor Representative Arnie B. Fuentebella offered to provide the requested mechanism data within about 30 minutes. On progress toward the target, he said the mix stood at 25% as of the prior year, after a 3% increase, and that a 2–3% annual increase would be needed to reach 35% by 2030.

Montes also asked about the Renewable Energy Act’s positive effect for the public; Fuentebella’s recorded answer began “Yes,” without further explanation in this unit.

Grid modernization and transmission accountability. Montes asked about grid expansion and the capacity to absorb renewable-energy projects, then focused on NGCP’s modernization effort and critical transmission-line timelines. Fuentebella said DOE would publish a smart-and-green-grid plan within the month and that a task force was meeting monthly with NGCP and other agencies. He said project timelines were case-specific. Asked what penalties would apply if NGCP failed to deliver, he deferred the regulatory question to ERC, explaining that DOE sets policy while regulation falls under ERC.

Long-term investment and financing. Montes cited the Philippine Energy Plan’s estimate of ₱10.7 trillion in investment needs between 2029 and 2050 and asked how government financing and private participation would be mobilized. Fuentebella confirmed the estimate and said the government was mobilizing domestic and international banking and private-sector funding.

Rep. Presley C. De Jesus: Near-term supply and renewable project pipeline. Representative Presley C. De Jesus pressed sponsor Representative Arnie B. Fuentebella for projects that would add supply in the next two to three years. Fuentebella distinguished 1,800 MW already in service from 176 renewable projects expected across 2026–2028, which he said would generate 10,090.45 MW; he offered to provide project details and locations. He also said the DOE’s Power Development Plan was still being completed and would be published in the first quarter of 2027. De Jesus questioned whether the pipeline would address near-term demand and supply reliability.

Coal fleet, crisis exemptions, and project status. On coal capacity, Fuentebella cited 13,024 MW across 58 plants and about 3,000 MW in plants at least 15 years old. De Jesus asked how the 2025 advisory defined a declared or imminent power-supply crisis that could exempt new on-grid coal capacity from the moratorium. Fuentebella described a trigger involving the Energy Secretary seeking emergency powers under the Electric Power Industry Reform Act (EPIRA) and monitoring demand and supply, while saying DOE was pursuing a mix of energy sources. He first gave an approximate 5,000 MW figure; after clarification about the coal projects and the 2020 moratorium, he identified 27 coal projects, 10 ongoing plants totaling 3,000 MW with the earliest target in 2028, and 17 still indicative and not started because they lacked offtakers. He clarified that DOE had issued no coal service contracts.

Offshore wind potential and project recalibration. De Jesus emphasized that an offshore-wind service contract represents potential, not a financed, built, grid-connected or dependable plant. He cited 95 contracts representing 72,332 MW of potential capacity alongside a 3,300 MW initial fixed-bottom offshore-wind auction target. Fuentebella agreed the potential should not be treated as deliverable capacity and said none had reached final investment decision because offtake was needed. He confirmed the Green Energy Auction activities had been placed on hold for recalibration; he cited port availability, environmental and tenure matters, and agency fees among the issues being addressed. He affirmed the prospect of lifting the hold in October and maintaining the delivery target discussed, while the listed obstacles were being addressed. The exchange distinguished the contract pipeline from capacity that had secured offtake or could be delivered.

Plant maintenance and shutdown terminology. Fuentebella warned De Jesus not to shut down plants and characterized an unlawful shutdown as economic sabotage. De Jesus clarified that he was referring to preventive maintenance and shutdowns when equipment has problems; Fuentebella distinguished preventive maintenance from forced shutdown. Their exchange disputed the terminology and did not establish that any plant had committed economic sabotage.

Rep. Renee Louise M. Co: Luzon Grid capacity and Pax Silica power requirements. Representative Renee Louise M. Co asked the Department of Energy (DOE) sponsor, Representative Arnie B. Fuentebella, for Luzon Grid capacity and peak demand. Fuentebella gave capacity as 13,241 megawatts and peak demand as 10,800 megawatts, and agreed to provide the requested data.

On the proposed Pax Silica Hub in Tarlac, Co asked whether its power would come from the Luzon Grid and whether the reported 3-gigawatt need was accurate. She attributed that figure to a BCDA claim. Fuentebella said DOE had no formal submission, application, feasibility study or documentation establishing a definite site, schedule or power requirement; he characterized the figure as not formally documented. He said DOE policy requires a facility to generate its own power.

Co asked for DOE guidance on meeting the hub’s energy needs. Fuentebella said DOE had prepared a guidebook and first offered to provide it that day, then clarified that PEZA comments were still needed to finalize it. He promised to furnish a copy once finalized, and later personally committed to provide it. Co urged DOE to prioritize household electricity needs and existing grid improvements amid reported rotating brownouts. Fuentebella agreed that DOE focuses on consumers and said the hub would generate its own power off-grid; he said its supply would not pass through the Luzon Grid.

Waste-to-energy opposition and circular-economy alternatives. Co voiced opposition to expanding waste-to-energy facilities and developing a framework that would treat the facilities as renewable energy. She argued that burning waste would worsen environmental destruction and favored alternatives such as a circular economy and zero-waste policy. She closed her questioning and said she would await reports requested through the sponsor from DOE. No adoption or disposition of her policy position was recorded in this exchange.

Rep. Sarah Jane I. Elago: Excise-tax relief and fuel prices. Representative Sarah Jane I. Elago asked what recommendation the Department of Energy (DOE) made after Dubai crude crossed the $80-per-barrel trigger under Republic Act No. 12316, which allows the President to suspend or reduce petroleum excise taxes on recommendation of the Development Budget Coordination Committee (DBCC) in coordination with DOE. She cited pump prices of ₱104 per liter for diesel and ₱87 per liter for gasoline. DOE sponsor Representative Arnie B. Fuentebella said DOE’s role was to certify that crude had exceeded the trigger; the DBCC decides what action to take.

Elago noted the announced excise-tax suspension for liquefied petroleum gas (LPG) and kerosene and urged extending relief to diesel and gasoline. She also cited calls to reduce the 12% value-added tax (VAT) on petroleum products, especially crude used by farmers and fishers, and raised the impact of oil prices on public-utility drivers. Fuentebella said tax decisions belonged to economic managers, outside DOE’s mandate. On future price movements, he said they depend on the international market, which the country cannot control.

Oil-storage proposals and reserve coverage. Elago asked for an update on a proposed commercial storage facility associated with Abu Dhabi National Oil Company and Saudi Aramco. She cited news reports of a 50-million-barrel target and 500-hectare site, with Zamboanga discussed as a possible location. Fuentebella said Zamboanga and Bataan were being considered and the Philippine National Oil Company (PNOC) was studying the proposals; the project and specific site were not finalized. He said PNOC was working toward a one-million-barrel storage commitment by 2028.

Elago asked about a separate 15-million-barrel reserve reference for Bataan. Fuentebella said the project would begin in Bataan, but the 15 million barrels were not assigned to Bataan alone and could be distributed nationwide. He estimated the one-million-barrel 2028 storage commitment would cover only about two to three days. He said PNOC would need to coordinate land use with agencies including the Department of Agrarian Reform (DAR) and environmental authorities, and assured the House that affected residents would not be displaced.

Oil-sector regulation and centralized procurement. Elago urged Congress to consider oil-sector measures including the Downstream Oil Industry Regulation Act (House Bill No. 8125), the Centralized Petroleum Procurement Act (House Bill No. 8126), and a proposal to renationalize Petron. She argued for stronger centralized procurement, price transparency and safeguards against manipulation, alongside faster direct subsidies during crises. These were legislative proposals and policy positions in her interpellation.

Rep. Antonio L. Tinio: LPG emergency purchase, sale, and remaining stock. Representative Antonio L. Tinio asked about DOE’s emergency purchase of 21,000 liters of LPG. Sponsor Representative Arnie B. Fuentebella said it had been sold, mostly to LPG companies: he cited a purchase price of ₱70 per liter and sale at ₱53 per liter. Fuentebella said the transaction stabilized supply; Tinio asked whether it reduced retail prices. Tinio cited an August report showing about 11,000 liters still in storage, while Fuentebella said that stock had since been sold, including another 11,000 liters in August, and none remained.

Diesel and gasoline disposition and policy limits. Tinio cited submitted data as showing 268,180,012 liters of diesel and gasoline purchased, with 181.7 thousand liters still in storage as of August; elsewhere in the exchange, the remaining stock is described as 181 million liters. The different figures and units are not reconciled in the exchange. Fuentebella clarified that the fuel was not purchased from Russia, but through traders, and said private-sector sales followed Singapore MOPS pricing; he said the government’s objective was securing supply, not assuring lower retail prices. He said DOE was constrained from directly selling fuel to consumers and that the Department of Transportation implements fuel subsidies, while economic managers make broader executive decisions on relief. DOE would dispose of the remaining stock prudently in light of domestic and world markets to avoid a supply shortage.

Missionary fuel and strategic storage security. Tinio cited a report that 6.4 million liters of diesel had been sold to the National Power Corporation (NAPOCOR) for off-grid missionary generation at a preferential ₱80 per liter. Fuentebella distinguished those sales from private-sector sales, which followed Singapore MOPS prices. Tinio raised security concerns about the privately owned Subic storage facility, alleging that it was collocated with U.S. Navy fuel reserves; Fuentebella said DOE had not known that detail, had selected Subic because it considered the facility secure and had no state-owned depot, and recommended building a government depot while noting the current rent cost.

Visayas outages and proposed system response. Tinio cited DOE data showing 92 days of yellow alerts and 29 days of red alerts in the Visayas through early September, and described rotating outages he had experienced. Fuentebella acknowledged plant outages and outlined DOE’s response: investigating and auditing plants declaring forced outages, returning units to service on schedule, deploying 253 MW of battery storage across Cebu, Panay, Leyte, and Negros, enforcing outstanding ancillary-services contracts, monitoring grid conditions, and using temporary power barges or generators. On additional Visayas capacity, he cited 585 MW of nonrenewable capacity described as immediate, a 500 MW renewable figure, and a longer-term renewable target of 15,101 MW; he promised a detailed list by area. Tinio argued that repeated outages and prices undermined EPIRA’s promises and called for repealing the law and restoring a direct government role; this was Tinio’s position, not an adopted decision in the exchange.

Rep. Sergio C. Dagooc: Power-demand projections and coordination. Representative Sergio C. Dagooc challenged the Department of Energy’s (DOE) Philippine Energy Plan projections, saying reliance on historical distribution-utility data can miss new resorts, businesses and other major loads. He proposed formal coordination with the Department of Trade and Industry, the Department of the Interior and Local Government, businesses and local government units so proposed developments are reflected in utility forecasts and supply plans. DOE sponsor Representative Arnie B. Fuentebella said the Department saw no problem in the plan but was open to suggestions; he agreed with Dagooc’s coordination proposal.

Generator reserves and ancillary services. Dagooc said a grid can lose contracted ancillary support when the same generating plant providing it has a forced outage. He proposed requiring generating companies to maintain their own ancillary reserves or provide cold, dispatchable reserve capacity that runs when another plant fails. Fuentebella agreed with the proposal, saying it would support transparency and accountability.

Renewable targets, system costs and public expectations. Fuentebella said the renewable generation-mix target was 50% by 2040. Dagooc supported the target but urged DOE to balance reliability and least cost and to manage public expectations: lower renewable generation prices can be offset by transmission upgrades and backup ancillary services, with costs passed to consumers. He contrasted this with rooftop solar, which does not require the same grid upgrades, and asked DOE to revisit its policy messaging. Fuentebella said DOE would revisit the policy.

Reserve-market rules and gaming concerns. Dagooc said ancillary-service procurement costs were falling while reserve-market costs were rising. He described a possible incentive for generators to terminate contracted arrangements and offer capacity into the reserve market, but said intent would be difficult to prove and framed this as a concern based on the trend, not a proven finding. He asked DOE to review the reserve-market circular and suggested considering whether NGCP could instead procure shortfalls from the regular market. Fuentebella agreed to revisit the circular and ancillary-service rules.

Dependable generation and transmission capacity inventories. Dagooc asked DOE to inventory installed and dependable generation separately, especially in the Visayas and Mindanao, and to map transmission capacity that can absorb new renewable generation without upgrades. He proposed directing developers toward locations with available capacity. Fuentebella first answered yes and, when Dagooc pressed him, said DOE was already doing this work.

Public generation and EPIRA amendment. Dagooc argued that Section 47 of EPIRA left the government dependent on private generators for ancillary services. He urged an amendment allowing at least one government-owned plant in each main grid to supply generation and ancillary capacity, built with a one-time public subsidy, with operations and maintenance recovered through paid ancillary services. Fuentebella said he totally agreed with the proposal and was supportive of Dagooc’s recommendations.

Benchmark-based VAT proposal. Dagooc said applying VAT to electricity and fuel costs can amplify price increases because the tax is applied across multiple stages of supply. He proposed setting a benchmark for each technology and taxing the benchmark amount while exempting price increases above it, preserving the government’s expected benchmark-based revenue while limiting inflationary pass-through. Fuentebella said he personally agreed with the proposal but noted it was outside DOE’s mandate.

Total-electrification alternatives. Dagooc said he would submit proposed special provisions for consideration at the proper time, including a provision allowing the National Electrification Administration to use forms of total electrification beyond line extensions. He proposed battery storage for communities with dedicated charging, and requiring storage facilities to have their own solar or wind supply so they would not add load to the transmission system. These were proposals for future consideration; this exchange records no adoption.

Disposition: Consideration and disposition. Deputy Speaker Yevgeny Vincente B. Emano stated that there was a joint motion to terminate interpellations on the proposed budget of the Department of Energy, including its attached agencies. With no objection, he declared those interpellations terminated. Representative Daphne A. Lagon then moved to suspend the session for a few minutes, and Emano declared the session suspended. This was a suspension at the close of Part 1; the exchange did not approve the appropriation.