Bagong Henerasyon party-list Rep. Robert Nazal has urged the Department of Budget and Management (DBM) to exclude the Commission on Higher Education (CHED) from remitting cash balances and trust funds to the National Treasury.
During plenary deliberations on CHED’s proposed 2026 budget, Nazal pointed out that the Higher Education Development Fund (HEDF) still holds a balance of P11.7 billion, which he said should be used to support new grantees under the Tertiary Education Subsidy program.
While Executive Order 338, issued in 1996, requires government agencies – including state universities and colleges (SUCs) – to transfer their cash balances and trust funds to the National Treasury, Nazal argued that the HEDF is an exception.
Created by law to expand access to higher education, he said the fund was specifically intended to be maintained in a government financial institution, not the treasury.
‘There are numerous students awaiting scholarship, and we cannot afford that these funds lay idle there without any purpose because thousands of our youth are still dreaming of reaching college in their education,’ he said.
Nazal revealed that CHED owes about P12.3 billion to SUCs under the Free Tuition Fee Law, including P1.1 billion to the Polytechnic University of the Philippines.
He argued that the P11.7-billion HEDF should be tapped to finance new scholarships, while the P12.3-billion arrears must be settled immediately.
‘The law is clear: these funds should be placed in a government financial institution, nor locked in the National Treasury,’ he said.
The HEDF, with a standing balance of P11 billion, earns around P2 billion annually. If invested at five percent interest, it could yield at least P550 million a year for additional scholarships, according to Nazal.
‘If DBM insists on controlling the fund, even the interest should be spent exclusively for college scholarships,’ he added. ‘But once it is commingled with the general fund, the money is moved around and no longer serves the very students it was intended for.’
Funding demands
Meanwhile, the DBM and a group of health workers have urged Congress to act swiftly on the proposed 2026 national budget, raising concerns over rising enrollment in SUCs and underfunding in the health sector.
Budget Secretary Amenah Pangandaman reiterated the Marcos administration’s commitment to increasing education spending, particularly for SUCs, and called on lawmakers to expedite the approval process.
The proposed 2026 national budget allocates P1.224 trillion to basic and higher education – equivalent to four percent of gross domestic product (GDP) – with P134.99 billion earmarked for SUCs.
However, with SUC enrollment projected to rise from 1.97 million to 2.27 million in 2026, lawmakers warned of a potential shortfall of P3.29 billion in the Free Higher Education program.
In response, Pangandaman assured Congress that the DBM is open to adjusting allocations to ensure funding matches projected enrollment figures.
She also emphasized the government’s use of Program Convergence Budgeting to consolidate overlapping programs, maximize resources and maintain transparency.
Despite the reallocation of P255.5 billion from the Department of Public Works and Highways’ flood control budget to education and health, Pangandaman said that critical infrastructure projects, such as school buildings, hospitals and agricultural facilities, would not be affected.
Simultaneously, the Health Alliance for Democracy (HEAD) criticized the proposed P320.5-billion health budget, which amounts to only 1.23 percent of GDP – well below the World Health Organization’s recommended five percent.
The group called for an increase to at least P1.3 trillion to fulfill the government’s promise of free and quality health care.
HEAD also condemned the current budget process, citing systemic corruption tied to unprogrammed appropriations and congressional insertions allegedly benefiting political allies.
The group demanded full transparency and accountability in budget proceedings, warning that leadership changes in Congress should not be used as political cover but should lead to genuine reforms.
HEAD further called for a comprehensive public health system that guarantees free, progressive and quality services without patients having to rely on political favors or programs like the medical assistance for indigent and financially incapable patients.
‘Replacements in the Senate presidency, Congress speakership and the creation of an Independent Commission for Infrastructure should not be mere political tools to placate the growing rage and eroding public trust of the people,’ it said.
‘Actions must lead to systemic change to restore integrity, uphold accountability and genuinely serve the people,’ it added.
Schedule
The House of Representatives, under Speaker Faustino Dy III, is set to conclude plenary deliberations on the proposed 2026 national budget this week.
Oct. 10 has been designated for the period of amendments before the bill is transmitted to the Senate for further review.
Deliberations on the proposed budgets of the Office of the Vice President, along with the Departments of Social Welfare and Development, Migrant Workers, Information and Communications Technology, Labor and Employment, Interior and Local Government, Civil Service Commission and the Career Executive Service Board, are scheduled for today, Sept. 30.
On Oct. 1, the House will tackle the 2026 budget proposals of the Office of the President, the Departments of Foreign Affairs, Science and Technology and Transportation.
The same day will also cover discussions on the budgets for the Congress of the Philippines, support for government-owned and controlled corporations, lump sum funds and the turno en contra.
During yesterday’s session, the House reviewed the proposed budgets of the Departments of Public Works and Highways, Agriculture, Health and other executive offices.
Once approved by the House, the General Appropriations Bill will be sent to the Senate.
This will be followed by a bicameral conference committee to reconcile any differences before submission to the President for signing.
Lawmakers are targeting enactment before the end of the fiscal year to avoid a reenacted budget, as outlined under Paragraph 7, Section 25, Article VI of the 1987 Constitution. – Keisha Ta-asan, Rhodina Villanueva