The Department of Transportation (DBM) said this Tuesday that it was allotting P1 billion of its 2026 budget to implement service contracting to drivers of the public transportation sector for its proposed “Libreng Sakay” program.

A request to the Department of Budget and Management (DBM) for the release of the Special Allotment Release Order (SARO) had already been submitted since 16 March according to DOTr Secretary Giovanni “Banoy” Lopez.

The issuance of a SARO is an important financial mechanism that ensures that the funding used by government agencies would properly align with the approved budget through the General Appropriations Act.

Lopez said that the transportation agency was studying whether it would be implementing net service contracting, gross service contracting, or a hybrid of both types.

“Because our current objective is how we can prolong, stretch the amount of money especially since we are going to be removing P300 million and where it will be implemented, we are going to have a targeted approach,” he said in Filipino.

“The P1 billion, nationwide, maybe it will only last us five days if we consider all routes,” he added.

Aside from the proposed service contracting, the DOTr has also maintained its distribution efforts of fuel subsidies for the transport sector nationwide.

On Monday, the department began its distribution for drivers and operators of modern and classic jeepneys, and UV express at the Land Transportation Office in Quezon City.

Based on the data released by the Land Transportation Franchising and Regulatory Board, it has already released a total amount of P651 million since March 17.

The program has also coincided with the Department of Social Welfare and Development’s P5,000 cash relief assistance rollout as part of the “whole of government approach” mandate of President Ferdinand Marcos Jr. to cushion the effects of the ongoing oil crisis.