Palace, LGUs seal P82.3-B grassroots fund

Malacañang and local government units (LGUs) have strengthened their partnership to fast-track grassroots development, with 29 provincial governors meeting Palace officials to finalize the rollout of an P82.3-billion fund for local projects this year.

The governors, along with 16 city and municipal mayors and seven representatives of other provincial executives, convened at Malacañang Palace on Feb. 19 to discuss the implementation of the Local Government Support Fund (LGSF).

The meeting was led by Executive Secretary Ralph Recto, who emphasized the administration’s commitment to empowering LGUs to directly implement priority programs under the 2026 national budget.

Of the P82.3 billion earmarked for grassroots initiatives, P57.88 billion has been allocated to the LGSF under the 2026 General Appropriations Act. The fund will finance projects identified and carried out by LGUs, covering food security, health, education, infrastructure and livelihood development.

The LGSF allocation was increased by P37.4 billion upon the directive of President Ferdinand R. Marcos Jr., who has pushed to expand the role of LGUs in implementing national programs.

Recto noted that while the LGSF allocation is substantial, it represents only a portion of the P1.393 trillion national tax share allotted to provinces, cities, municipalities and barangays for 2026.

“In ordering a hike in the LGSF allocation, President Marcos believes that LGUs have the capacity, experience and means to implement national projects,” Recto said.

He added that the President has consistently stressed that LGUs should not merely receive national projects but actively take part in implementing them to ensure faster and more efficient service delivery at the community level.