Deliberations on the proposed P6.793-trillion 2026 national budget hit a major roadblock on Monday after a deadlock over funding for the Department of Public Works and Highways (DPWH) forced the bicameral conference committee to suspend its third day of meetings.

The suspension exposed deep divisions between the Senate and the House of Representatives over project costing, pricing standards, and lingering concerns about reform within the DPWH.

Despite the setback, lawmakers signaled that talks could resume as early as today, Tuesday.

Senate Finance Committee chair Sherwin Gatchalian announced the halt following a caucus among the senators, citing unresolved questions over DPWH project costs raised during Sunday’s deliberations.

“We are suspending it for now. We will first discuss the matter with the DPWH,” Gatchalian told reporters, confirming that the senators opted to pause the negotiations to seek clarification from the public works agency.

He said the Senate remained firm against what it considered inflated project costs.

“The Senate is very firm. We do not want overpriced items. You can call it a deadlock, but we are looking for solutions. We want this to move forward,” he said.

At the center of the standoff is the P54-billion difference between the House and Senate versions of the DPWH’s 2026 budget.

The House approved P624.48 billion for the agency, while the Senate slashed this to P570.48 billion after applying the revised Construction Materials Price Data (CMPD), which lowered cost assumptions for several infrastructure components.

Warning

Public Works Secretary Vince Dizon, who attended the second day of the bicameral conference on Sunday, formally asked the lawmakers to restore the slashed funds. He warned that failure to do so could derail nearly 10,000 infrastructure projects nationwide.

Dizon argued that the Senate’s reduction relied on adjusted price data that, if applied wholesale without project-level recalibration, could result in undercosting, stalled implementation, underspending, and potential legal and administrative complications.

Malacañang backed Dizon, stressing that the budget reduction did not originate from the DPWH but in the Senate’s version of the spending plan.

“The DPWH already had a requested budget; it was reduced in the Senate,” Palace Press Officer Undersecretary Claire Castro said. “If this is not restored, close to 10,000 projects will not be implemented.”

Castro said the agency is seeking authority to apply the updated CMPD through a special issuance and a department order to ensure accurate costing and proper execution.

“The motion for reconsideration is meant to avoid inaccurate costing and potential project unimplementability,” she said.

The budget impasse unfolded alongside moves by the DPWH to project internal reforms.

On the same day the bicameral talks were suspended, Dizon announced leadership changes in the DPWH Bulacan First District office, an area long plagued by chronic flooding and recently placed under scrutiny amid investigations into alleged anomalous flood control projects.

Kenneth Fernando was appointed officer-in-charge district engineer, with Paul Lumabas named OIC assistant district engineer. Dizon said the reshuffle was aimed at delivering concrete results, not just accountability.

Broader shakeup

“People in Bulacan need solutions. Yes, they want accountability, but they also want solutions,” Dizon said. “They are suffering almost six months a year because of flooding.”

He described the Bulacan appointments as part of a broader shake-up within the agency, aligned with President Ferdinand Marcos Jr.’s directive to overhaul the DPWH practices blamed for inefficiencies and corruption.

Fernando, a graduate of the Cadet Engineering Program and a 10-year DPWH veteran, and Lumabas, formerly with the central office’s Public-Private Partnership Service, are expected to spearhead reforms at the district level.

Dizon said more leadership changes are forthcoming, with “fresh blood” to be installed in key posts nationwide as the administration pushes to dismantle the entrenched systems and impose a results-driven culture within the department.