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Philippine lawmakers cut funding for two flagship railway projects in the proposed P6.793-trillion budget for 2026, citing sluggish construction and a need to divertPhilippine lawmakers cut funding for two flagship railway projects in the proposed P6.793-trillion budget for 2026, citing sluggish construction and a need to divert

Congress cuts rail funding in proposed 2026 budget

2025/12/17 10:32

Philippine lawmakers cut funding for two flagship railway projects in the proposed P6.793-trillion budget for 2026, citing sluggish construction and a need to divert resources to more urgent government programs.

The bicameral conference committee on late Tuesday slashed the allocations for the 147-kilometer North-South Commuter Railway to P30.6 billion from P57.6 billion in the appropriations bill, based on a livestreamed budget presentation.

The joint congressional panel also pared funding for the Metro Manila Subway Project to P22.2 billion from P39.2 billion.

The Transportation department said the reallocation is “in line with the urgent priorities of the National Government to further boost economic growth and social equity,” according to the agency’s letter sent to the Senate on Dec. 1.

“This adjustment will ensure more efficient use of available resources and present a timely opportunity to put existing resources to work where they are needed most,” it said.

The two railway systems are among the government’s flagship infrastructure projects that have repeatedly faced delays due to right-of-way disputes.

The North-South rail, which broke ground in 2019, is now slated for full operations by 2032, while the Metro Manila Subway, launched the same year, will begin partial service only by 2032.

“In the past five years, the North-South Commuter Railway, its average utilization is only 33%, and the Metro Manila Subway is only 36%,” Senator Sherwin T. Gatchalian, who heads the Senate Finance Committee, told the joint congressional panel. “Utilization remains very low for these two projects.”

The rechanneled funds, originally earmarked as the government’s counterpart to project loans, will instead go to standby appropriations that can only be tapped if revenue collections surpass targets or if additional borrowing is secured.

Mr. Gatchalian said that unprogrammed funding would likely be released in the second quarter of next year.

“That can be used to fund the two projects that were mentioned,” he said.

CASH AID
Also on Tuesday, the bicameral conference committee agreed to hike funding for the government’s cash assistance program for indigent Filipinos to P63.9 billion from P59 billion in the budget bill.

Senator Erwin T. Tulfo, former Social Welfare secretary, said the increase was necessary as funding for the Assistance to Individuals in Crisis Situations (AICS) program typically runs short toward the end of the year.

“The AICS program is always lacking, and there is always a request to the Budget department for a Quick Response Fund when October and November come,” he told the panel in mixed English and Filipino.

AICS provides financial assistance to individuals in crisis, including medical, burial, transportation, and educational assistance. – Kenneth Christiane L. Basilio

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