A House leader on Monday called into question the government’s practice of using funds earmarked solely for the free WiFi program.

During the previous budget hearing, the Department of Information and Communications Technology reported that roughly 2,600 of the 12,463 free WiFi nationwide have ceased operations due to lack of funding.

The Department of Budget and Management (DBM) earlier said that funds earmarked for the free WiFi program, sourced from the special account in the general fund, may be bumped off in the event of an increase in programming.

“Is it right that we are using the money that was set aside by a law [other than specified in the law]? The law is clear... it's specified there that the funds can only be used [for free WiFi program]," House Deputy Minority Leader Bernadette Herrera said during the opening of floor debates on the proposed 2025 budget on Monday.

Marikina Rep. Stella Quimbo, the DBM sponsor, countered that while the agency concerned has yet to utilize the allocation, the national government temporarily uses the standby earmark fund to invest it in other projects.

"But in any point in time that an agency demands those earmark revenues, the treasury must be able to make those funds available," she said.

Earmark revenues are identified revenues required by law to be used for designated activities, benefits, or purposes which can be either classified as use of income or special account in the general fund. 

Herrera, however, argued, that no law legalizes the use of standby earmark for purposes other than those for which they were originally set aside.

"I don't buy that 'it's readily available,' that's not the point. The point here is, can the money allotted by Congress for a particular [project] be used for other things?" she asked.

She added, "Your defense is that at any given time, the free WiFi program can ask for the budget, but what if the government has no money?"

Herrera further asserted that earmark revenue could be only used for other purposes if it has a legal basis such as required under a law, a presidential decree or an international agreement. 

Using it in the absence of legal authority could be likely considered "unconstitutional."

“Even [Section 37 of PD 1177] says here: all monies appropriated for functions, activities, projects and programs shall be available solely for specific purposes which these are appropriated," Herrera lamented.

Earlier last month, the DBM released P3.68 billion for the continuation of the nationwide implementation of the Free Public Internet Access Program (FPIAP) as mandated by Republic Act 10929.

The FPIAF was given an initial P2.5 billion in February of this year and is expected to be fully obligated last month.

DICT Undersecretary Jeffrey Ian Dy said the P2.5 billion is only sufficient to maintain 13,462 free Wi-Fi live access points nationwide for five months and that the P3.68 billion could sustain it "until the end of the year plus approximately two more months in 2025."

Section 17 of RA 10929 mandates that FPIAF shall be funded out of the spectrum users fees collected by the National Telecommunications Commission and other sources to be identified by the DBM.