ERICE: Fund gives BBM ‘Blank Check’

Caloocan City 2nd District Rep. Edgar Erice is threatening to bring the proposed P58.53-billion Local Government Support Fund (LGSF) before the Supreme Court unless its allocation rules are tightened, arguing that the fund gives the President a “blank check” over billions of pesos for local governments.

In an interview with Ted Failon on Tuesday, Erice said his concern was not the assistance for local government units (LGUs) but the breadth of discretion over where the money goes.

He pointed to the rapid expansion of the LGSF — from P23 billion in 2025 to P58 billion this year and over P58 billion proposed for 2027. Erice called it a “presidential pork barrel” and questioned whether Congress was surrendering its constitutional power over public spending by approving such a broad authority.

Official budget documents confirmed the LGSF was P22.999 billion in the 2025 General Appropriations Act and was increased to P57.873 billion in 2026. The proposed 2027 allocation is P58.53 billion.

Where are parameters?

Erice cited the P500-million allocation for Naga City as an example, but stressed that he was not questioning the city’s receipt of assistance or Mayor Leni Robredo’s governance.

The issue, he said, was the absence of what he considered clear enough parameters for determining which LGUs should be prioritized.

“There should be guidelines on prioritization and necessity,” Erice said, arguing that allocations should have a scorecard based on need rather than relying largely on executive discretion.

He contrasted the LGSF with the National Tax Allotment, which is distributed under a statutory formula. Erice questioned how wealthier cities could receive hundreds of millions of pesos in additional support while poorer LGUs may receive less.

Erice said he would wait until the 2027 General Appropriations Act is enacted before mounting a court challenge, adding that he had already raised his concerns with budget officials and would continue pushing for narrower guidelines.

What does LGSF pay for?

The LGSF is an umbrella fund covering several forms of national government assistance to LGUs.

In 2025, its P23-billion allocation included P18.95 billion in financial assistance to LGUs, P1.95 billion for the Barangay Development Program, and P700 million each for the Growth Equity Fund, Green Green Green Program, and participatory budgeting.

Eligible projects ranged from agriculture, roads, bridges and water systems to disaster equipment, ambulances, social assistance and scholarships.

For 2026, Congress increased the fund to P57.87 billion, including P37.49 billion in direct financial assistance to LGUs, P8.08 billion for the Barangay Development Program, P11.3 billion for the Growth Equity Fund, and P1 billion for participatory budgeting.

The Marcos administration has also used part of the 2026 financial assistance component for rice distribution to indigent individuals and families, with the Department of Budget and Management and the Department of the Interior and Local Government issuing specific guidelines for the program.

The Growth Equity Fund, meanwhile, is explicitly intended for poor, disadvantaged, lagging and low-income LGUs and areas facing fiscal gaps from devolution.