Senate clears path for 2026 budget

The Senate is moving full steam ahead with the 2026 national budget, with third reading in sight this Tuesday, according to Senator Sherwin Gatchalian, chairman of the Senate Committee on Finance.

In a radio interview on Sunday, Gatchalian walked reporters through the latest developments on the budget, highlighting key changes, safeguards, and allocations designed to benefit ordinary Filipinos.

Transparent bicameral talks 

Once the Senate approves the budget on third reading, it will enter the Bicameral Conference Committee (Bicam) to reconcile differences with the House of Representatives’ version. For the first time, both the Senate and House agreed to livestream the discussions, allowing the public to follow the negotiations closely.

“The Bicameral Conference has often been a closed-door process, but given the issues we saw in last year’s budget, both Houses agreed to open it up. Transparency is key,” he said. All related documents are already uploaded online for public access.

SAGIP Removed, Funds Reallocated
One of the most significant changes in the 2026 budget is the removal of the controversial SAGIP lump-sum allocation, previously pegged at P120 billion. 

“SAGIP is gone. The items have been absorbed into programmed appropriations, so there’s no more pork barrel,” he explained.

The unprogrammed appropriations now only include foreign-assisted projects and AFP modernization. The flood control projects previously funded under SAGIP, totaling P60 billion, will instead be returned to PhilHealth following a Supreme Court ruling. 

Another P40 billion has been earmarked for assistance to local government units affected by typhoons.

Boost for social programs
The Senate also increased funding for education, including classrooms and textbooks, with DepEd receiving nearly P73 billion. Programs like 4Ps, social pension, and zero-balance billing remain protected under “rules-based” allocations. To prevent politicization, amendments now prohibit politicians from participating in the distribution of aid.

PhilHealth funding restored
On PhilHealth, Gatchalian confirmed that the Supreme Court-mandated return of  P60 billion will be reflected in the 2026 budget. Additionally, P130 billion will be allocated to improve case rates and ensure zero-balance billing in hospitals, reinforcing free healthcare for all Filipinos.

Independent People’s Commission not in budget

Gatchalian clarified that the proposed Independent People’s Commission will not appear in the 2026 budget due to a lack of legal basis. Meanwhile, any funding for the ICI (Independent Commission Against Infrastructure Corruption) is expected to come from the Office of the President’s budget, not a separate line item.

If approved on third reading, the Senate will post the full 2026 budget online by mid-week, complete with annexes listing project details, technical descriptions, and geographic coordinates.

“Our goal is transparency, accountability, and ensuring that funds are properly used for the benefit of our people,” Gatchalian said.