Palace reviews DPWH 2026 project fund reallocation

Malacañang confirmed Monday that P255.5 billion originally allocated for flood control projects under the Department of Public Works and Highways (DPWH) will be reallocated to support “more appropriate” government programs, though necessary flood mitigation efforts will continue.

Palace Press Officer Atty. Claire Castro said in a press briefing that the DPWH is currently reassessing its proposed 2026 budget to identify projects where funds could be adjusted or trimmed to create “fiscal space.”

“The President would rather prefer to reallocating this to proper programs to help many of our countrymen,” Castro said, translating the sentiment of President Ferdinand Marcos Jr.

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

She clarified that existing projects that were already funded and paid for — but remain incomplete — are considered contractors’ liabilities under contractual obligation.

“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,” she pointed out.

Responding to former Senator Franklin Drilon’s recent 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 reiterated the President’s warning of a potential veto if irregularities and questionable insertions persist in the 2026 budget proposal.

Castro also subtly directed accountability toward legislators responsible for budget insertions, remarking, “It’s better to ask those who made insertions, what is their lesson learned?”