President Ferdinand R. Marcos Jr. on Saturday announced that P60 billion originally allotted to flood control projects under the Department of Public Works and Highways (DPWH) will be reallocated to the Philippine Health Insurance Corporation (PhilHealth).

The announcement came during the President’s visit to the Dr. Jose Fabella Memorial Hospital in Manila, where he assessed the implementation of the government’s Zero Billing Policy, a key program under Universal Health Care.

“I'm happy to be able to announce that because of what we're doing... coming from various departments, but mainly from the Department of Public Works and Highways, that P60 billion will now be returned to PhilHealth,” Marcos said. 

The reallocation follows the removal of P255 billion worth of locally funded flood control projects from the DPWH’s proposed 2026 budget, trimming the agency’s total budget proposal from P881.3 billion to P624.8 billion.

The decision to cancel these projects stems from mounting concerns over corruption, transparency, and the effectiveness of spending in the agency. 

Marcos underscored that the fund realignment aligns with his administration’s anti-corruption drive and desire to redirect public funds toward “essential and high-impact services,” including healthcare, education, agriculture, housing, and social welfare.

Assuring continued services

Addressing public concerns, the President clarified that the earlier P60 billion transfer from PhilHealth to the National Treasury had raised doubts about the agency’s capacity to deliver services. 

However, he assured Filipinos that PhilHealth benefits were not affected and, in fact, have been expanded.

Marcos likewise noted that the reallocation is meant to further strengthen PhilHealth and will directly go back to improving services and benefit packages for the insurer’s members, he added.

He added that the P60 billion boost to PhilHealth is expected to support the government’s Universal Health Care Law by increasing access, reducing out-of-pocket expenses, and expanding coverage of benefit packages for millions of members.

In line with President Marcos’ directive to eliminate corruption and improve fiscal accountability, the Department of Public Works and Highways (DPWH) has significantly revised its proposed 2026 budget. From an initial allocation of P881.312 billion, the agency’s budget has been trimmed down to P624.784 billion, a reduction of P255 billion, following the removal of all locally funded flood control projects from next year’s expenditure plan.

Marcos earlier emphasized that the scrapped allocations will be redirected to priority sectors such as healthcare, education, agriculture, housing, infrastructure, ICT, labor, social services, and energy, ensuring that public funds are used for programs that deliver direct and tangible benefits to the Filipino people.