The Department of Transportation (DoTr) said on Tuesday that it is allocating P1 billion from its 2026 budget to implement service contracting for drivers in the public transportation sector under its proposed “Libreng Sakay” program.

A request to the Department of Budget and Management (DBM) for the release of a Special Allotment Release Order (SARO) had already been submitted on 16 March, according to DoTr Secretary Giovanni Lopez.

SARO ensures that funding used by government agencies aligns with the approved budget under the General Appropriations Act.

Lopez said the agency is studying whether to implement net service contracting, gross service contracting, or a hybrid of both.

“Because our current objective is how we can prolong and 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.

“The P1 billion, nationwide, may 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 of fuel subsidies for the transport sector nationwide.

On Monday, the department started distributing assistance to drivers and operators of modern and traditional jeepneys and UV Express units at the Land Transportation Office in Quezon City.