Malacañang on Monday said the reallocation of the P255.5 billion originally intended for flood control projects under the Department of Public Works and Highways (DPWH) will be used to support other “more appropriate” government programs without shelving necessary flood mitigation efforts.

In a press briefing, Palace Press Officer Atty. Claire Castro said the DPWH is currently reassessing its proposed budget for 2026 and has identified projects where funds could be adjusted or trimmed to create “fiscal space.”

“Mas nanaisin po ng Pangulo na ito ay mailagay sa tamang mga programa at para po mas makatulong sa mga kababayan po natin (The President would rather prefer to reallocating this to proper programs to help many of our countrymen),” she said.

Castro, meanwhile, confirmed key flood control projects will not be scrapped, especially as the country braces for increasingly erratic weather patterns and stronger typhoons.

She then clarified that existing projects that were already funded and paid for—but not yet completed—remain under contractual obligation and are considered contractors' liabilities.

“Kung ito man ay napondohan at nabayaran po in full at hindi nagawa ng mga contractors na ito, liability po nila ito at dapat po itong tapusin (If these are funded and have been paid for in full, and the contractors failed to build these, then it's their liability and they should finish them),” Castro pointed out.

Asked to comment on former Senator Franklin Drilon's remarks that the 2025 national budget was the "most corrupt budget" in history,

Castro said the administration is taking the criticism seriously and remains committed to ensuring transparency in the upcoming 2026 budget.

She then reiterated President Ferdinand R. Marcos Jr.’s warning of a potential veto if irregularities and questionable insertions persist in the 2026 budget proposal.

“Mas maganda po sigurong maitanong ito doon sa mga naglagay ng insertions, ano po ang lesson learned nila? (It’s better to ask those who made insertions),” Castro remarked, subtly directing accountability toward legislators responsible for budget insertions.