President Ferdinand R. Marcos Jr. announced Monday that funds from cancelled flood control projects for 2026 will be realigned to priority sectors of the government, including education, health, agriculture, housing, infrastructure, ICT, labor, social services, and energy.

Speaking at a Palace briefing, the President said a clear spending “menu” has been prepared to guide lawmakers in allocating the rechanneled funds in the upcoming national budget.

“Now, since we have canceled all flood control projects for 2026, those savings — we already put a menu, so that even for the budget being written now, it’s very clear where the money should go,” Marcos said.

The President emphasized that this menu-based approach is designed to promote transparency and accountability in public spending. Lawmakers will be expected to adhere to this guide when proposing insertions or realignments.

“So we have made a menu for our legislators to follow, and all insertions or changes can only benefit these specific agencies,” he added.

Marcos clarified that no new funds will be allocated for flood control projects in the 2026 budget, stressing the need to first fully utilize the P350 billion already earmarked for 2025.

The move comes amid growing public scrutiny over alleged irregularities in infrastructure spending, particularly in flood control projects. 

Last week, the President announced the formation of the Independent Commission for Infrastructure (ICI) to investigate potential anomalies in flood control programs over the past decade.

According to Palace, the realignment of funds and establishment of the ICI mark the administration’s initial steps toward budget reform and clean governance.