MANILA, Philippines — Local chief executives and Malacañang officials met on February 19, 2026, to finalize the rollout of nearly P60 billion in funding for local projects, aimed at decentralizing service delivery and empowering local government units (LGUs).
The meeting, led by Executive Secretary Ralph Recto, included 29 provincial governors, 16 city and municipal mayors, and several representatives. The primary focus was the Local Government Support Fund (LGSF), which has been allocated P57.88 billion in the 2026 national budget—an increase of 260% over the original request.
Key Highlights of the P57.9-B LGSF Rollout:
- Direct-to-LGU Allocation: The LGSF is designed as a direct funding source for LGUs to implement projects based on their specific community needs.
- Priority Sectors: Projects under this fund must fall within a “menu of programs” defined by the 2026 General Appropriations Act, including:
- Food Security and Livelihood
- Health and Education facilities
- Infrastructure (Roads, bridges, and evacuation centers)
- Climate-resilient initiatives
- NTF-ELCAC Support: Roughly P8 billion of the fund is specifically earmarked for the Support to the Barangay Development Program under the National Task Force to End Local Communist Armed Conflict.
- Ending “Surprise” Projects: Budget Secretary Rolando Toledo emphasized that under the 2026 framework, projects not requested by or known to LGUs are no longer allowed. The goal is for LGUs to be “active implementers” rather than passive recipients.
Criticism and Safeguards
While the administration frames the expanded LGSF as a tool for empowerment and efficiency (with Interior Secretary Jonvic Remulla noting that local implementation can be 40% cheaper than national agency projects), budget watchdogs have raised concerns. Some critics have labeled the lump-sum increase as “LGU pork” that could be used for political patronage. In response, Malacañang maintains that the 2026 budget includes strict reporting requirements and line-item specificity to ensure transparency.
This P57.9-billion fund is part of a larger P1.393 trillion total national tax share for LGUs in 2026, marking a significant shift toward local autonomy in the Marcos administration’s fiscal strategy.