Marcos’ 2026 Sona: Flood scandal, tax, power reforms take center stage

In his penultimate State of the Nation Address (Sona), President Ferdinand Marcos Jr. touted his administration’s accomplishments and laid out new commitments, highlighting updates on the flood control scandal and proposed amendments to policies involving tax and electricity.

Based on INQUIRER’s time count, the 2026 address lasted for one hour and 26 minutes, marking the President’s longest yet, surpassing his previous longest speech in 2022 which lasted an hour and 21 minutes.

In this year’s Sona, Marcos opened with what was perhaps the most awaited update involving his administration, directly picking up from his most explosive pronouncement in last year’s address, the ‘Mahiya naman kayo’ (have some shame) remark that triggered a government-wide investigation into alleged ghost flood control projects nationwide.

According to Marcos, since baring the scandal in 2025, the government has already charged and imprisoned contractors, high-ranking officials of the Department of Public Works and Highways and even legislators.

The President even directly mentioned his own cousin former Speaker Martin Romualdez’s alleged involvement in the scandal, stating that multiple cases are set to be filed by the Ombudsman against him.

This marked Marcos’ first time addressing the looming charges against his cousin.

‘Masakit man sa akin ito, ngunit kailangan natin gawin ang tama. Hindi ako Pangulo ng aking pamilya, hindi ako pangulo ng aking kaibigan. Ako ay pangulo ng Pilipinas at ang tungkulin ko ay sa inyo, ang aking mga kapwa Pilipino,’ an emotional Marcos said.

(This may be painful for me, but we must do what is right. I am not the president of my family, and I am not the president of my friends. I am the President of the Philippines, and my duty is to you, my fellow Filipinos.)

Meanwhile, Marcos also bared that over P800 million out of P20 billion worth of ill-gotten assets from anomalous flood control projects were already returned to the government.

Energy and electricity

Another highlight of the speech was Marcos calling for the removal of electricity system loss charges passed on to consumers, stating that it was about time to stop making households shoulder costs stemming from inefficiencies in the power distribution system.

System loss refers to the difference between the power delivered to a distribution system and the actual electricity billed to consumers, driven by technical inefficiencies and electricity theft.

With this, Marcos demanded the immediate amendment of the Electric Power Industry Reform Act or Epira law ‘to prohibit charging systems loss against consumers, including the value-added tax thereon.’

Marcos also sought the Congress’ help in passing the ‘Sariling Kuryente’ Act to make the installation of solar panels and battery storage systems in homes simpler, easier and more affordable.

Furthermore, the President also bared plans to revisit nuclear energy development to reinforce the country’s energy security and reduce rising electricity costs, while vowing to ensure that its implementation will be safe.

This is despite him touting gains in petroleum service contracts, as well as hydrogen power plants and the extension of the Malampaya service contract until 2039.

Middle East and rising costs of fuel

Marcos also directly addressed the impact of the conflict in the Middle East, particularly the surge in fuel prices battering the country since the start of 2026.

In his speech, Marcos claimed that the government ‘did everything possible’ to either lower or slow the increase in the price of fuel.

Among these initiatives, he said, include the purchase and importation of oil from various countries, including Japan, South Korea, Oman, India, Russia and China, and the cooperation of various oil companies, particularly in making sure the implementation of price increases in petroleum was gradual.

He also mentioned the series of large price rollbacks the government set, the three-month-long suspension of excise taxes on LPG and kerosene, as well as limiting the price of imported rice.

Marcos also highlighted the P58-billion fund allocated to local governments, saying it enabled the swift delivery of assistance to those affected by the Middle East conflict.

Reintegration and employment assistance were also made available for returning Filipinos, according to Marcos, adding that the government is currently in coordination with foreign countries to provide support to overseas Filipino workers (OFWs).

Taxes

Also related to the impact of the Middle East conflict is Marcos’ announcement of proposed multiple tax relief measures ‘to ensure the continued progress of the middle class amidst the lingering effects of the crisis.’

Marcos said the government will pursue tax relief measures that promote growth, generate revenue and ‘advance equity toward socio-economic sustainability.’

‘As a form of protection and for them to benefit more from their hard-earned earnings, I call on Congress to pass laws that will ease tax burdens,’ he said in Filipino.

Marcos said the government must expand the income tax exemption, exempting more workers from the monthly income tax.

‘We have to include those with an annual income of P350,000 or less,’ he said.

Moreover, Marcos said an amnesty will also be given to unpaid income, estate, donor and value-added taxes, including the fines that come with them.

Racism vs Filipinos, 2016 Arbitral Award

The president also devoted part of his speech to the 2016 Arbitral Award, recognizing the recent celebration of its 10th anniversary and describing it as a ‘definitive benchmark for the interpretation and application of the UNCLOS (U.N. Convention on the Law of the Sea).’

Marcos then reiterated his administration’s commitment to continue advancing the award and maintaining the country’s sovereignty over the West Philippine Sea against China.

‘Your government will do all that is necessary to continue upholding this Award, utilizing every peaceful and legal means available to the Republic against any attempt, foreign or domestic, to undermine this achievement,’ he said.

Marcos even alluded to China’s recent racist remarks against Filipinos, particularly state-run media China Daily’s depiction of Filipinos as monkeys.

‘Let me remind our friends and our detractors: Filipinos are a noble, kind, gracious, and great race. We are not greedy. We are not racists. We are not liars,’ said Marcos during his 5th Sona.

‘We are respectful, and we are dignified. We are Filipinos, and we do not yield,’ he added.

Other highlights

The address also touched on various other promises and issues, including transportation wherein Marcos vowed that the North-South Commuter Railway and Metro Rail Transit Line 7 (MRT-7) will start operations by 2027.

He also announced his administration’s goal to usher in more electric vehicles (EVs) on the country’s roads, aiming to reach a point where half of cars by 2040 will be electric-powered.

Due to this plan, Marcos said the government is therefore mandated to support modernization as it is required to integrate EVs in offices’ vehicular fleets.

Marcos also mentioned developments in technology, including the scheduled 2027 rocket launch in Cagayan which will be done in partnership with an aerospace company in South Korea.

The President also mentioned the controversial Pax Silica, hailing it for its supposed economic benefits and describing it as part of the country’s bid ‘to strive for bigger and greater things’ by ‘venturing into areas heretofore unimaginable,’ to position the country in the global value-chain.

According to Marcos, the hub will be a strategic component of the Luzon economic corridor, which will be an ‘advanced manufacturing and logistics center in the global AI and technology value chain.’

It is set to be built at a 1,620-hectare site in New Clark City in Capas, Tarlac.

Another highlight was Marcos promising to construct disaster-resilient ‘Ligtas Pinoy Centers’ this year, built to withstand increasingly severe natural disasters.

Marcos said the new evacuation facilities will initially be built in areas frequently battered by severe weather, including Bicol, Eastern Samar, Bukidnon, and Davao de Oro.

In the same breath, Marcos also called for amendments to the National Building Code to bring the country’s construction requirements in line with modern standards.

Another amendment proposed by Marcos involved the 25-year-old Ecological Solid Waste Management Act, with Marcos stating that it is high time for the measure to be updated.

Marcos said the law must now be aligned with modern waste management practices, such as waste-to-energy and waste treatment technology.

In terms of health, Marcos announced that the Philippine Health Insurance Corporation, known simply as PhilHealth, is set to expand its preventive health program in 2027 to gradually include blood tests and medicines aimed at detecting and monitoring kidney, liver and thyroid conditions, as well as hepatitis B.

Marcos also pledged to complete the distribution of land titles to agrarian reform beneficiaries by next year, after more than 400,000 titles covering over 500,000 hectares were distributed in the past four years.

He also likewise committed to completing the ongoing cancellation of agrarian reform beneficiaries’ debts this year.

Marcos also turned his attention to victims of the Tacloban City school shooting, even specifically recognizing Chris Lorenz Fabian, Joyancee Separa and Ayessa Nicole Dazo, whom he hailed as heroes.

‘To the parents of Chris Lorenz Fabian, Joyancee Separa, and Ayessa Nicole Dazo: we are all so very proud of the unflinching bravery and heroic virtue that you have instilled in your children. They are an inspiration to us all,’ Marcos said.

‘Their courage and selflessness – true Filipino qualities – are the virtues that these trying times call for,’ he added.

He then ordered stronger efforts to protect children from violence and harmful influences.

Unaddressed issues

While Marcos’ speech tackled several other issues, below are widely-talked about topics the President did not touch upon.

Former President Rodrigo Duterte’s trial before the International Criminal Court

Vice President Sara Duterte’s impeachment trial

Armed Forces’ alleged involvement regarding Sara Duterte’s assassination threat against him

Former Ako Bicol partylist Rep, Zaldy Co and his involvement in the flood control scandal, and his continued evasion

Intrusion of commercial fishing operations into the 15-kilometer municipal waters

Crime rates and the anti-illegal drug campaign

Progress on high-profile cases like the ‘missing sabungeros’ case or the Atong Ang manhunt

Modernization efforts of the Philippine National Police and the Armed Forces of the Philippines

Legislative Executive Development Advisory Council or Ledac Priority bills

2027 budget

Absentees

It was also hard not to notice several absentees in this year’s Sona, particularly that of Vice President Sara Duterte’s, which may be expected amid her political dispute with Marcos in the past two years.

Also-somewhat expectedly-absent, were minority senators, particularly Sens. Alan Peter and Pia Cayetano, Robin Padilla, Bong Go, Lorena Legarda, Mark Villar and even his own sister Imee Marcos.

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