Bicameral budget talks hit deadlock on DPWH funding

THE SENATE and House of Representatives canceled Monday’s scheduled bicameral conference committee meeting after lawmakers deadlocked over whether to restore funding for the Department of Public Works and Highways (DPWH) in the proposed P6.793-trillion national budget for 2026, amid lingering concerns over corruption in flood control projects.

Senator Sherwin T. Gatchalian, chairman of the Senate Finance committee, described the issue as “deadlocked” but said the chamber remains open to compromise.

“The House had a different opinion. We had a different opinion,” he told reporters, adding that the Senate is reviewing DPWH Secretary Vivencio B. Dizon’s appeal to reverse a P45-billion cut in the agency’s proposed budget. “This is a very technical issue, and it will take time to talk with DPWH.”

Nueva Ecija Rep. Mikaela Angela B. Suansing, who heads the House Appropriations Committee, said no new bicameral meeting had been scheduled, urging lawmakers to act quickly to avoid a reenacted budget for 2026.

She warned that roughly 9,900 infrastructure projects totaling P406 billion could be affected if the cut is retained. “If we assume that 25% of these projects will become unimplementable, that’s already P101 billion wasted,” she said.

The dispute centers on DPWH’s allocation in next year’s spending plan. The Senate trimmed the agency’s budget to P570.8 billion, roughly 8.6% lower than the House’s P624.48 billion, citing concerns over overpriced materials and procurement irregularities.

Earlier, both chambers reduced P255 billion earmarked for flood control projects from the Executive’s proposed P880 billion infrastructure program, following allegations of anomalies in project implementation.

Senators have indicated they are firm on maintaining cuts linked to overpriced construction materials. “The Senate is very firm that it doesn’t want overpriced materials,” Mr. Gatchalian said, citing the need for transparency and fiscal accountability.

Meanwhile, the Marcos administration signaled support for restoring the funds. Palace Press Officer Clarissa A. Castro said President Ferdinand R. Marcos, Jr. is aware of Mr. Dizon’s appeal and stressed the importance of DPWH spending in driving economic growth.

“So, the wish is for [the Senate cut] not to be granted. Nearly 10,000 projects will not be implemented if the budget requested by DPWH is further cut,” she separately told a news briefing.

Mr. Dizon said the P45-billion restoration would not fund flood control projects implicated in corruption but would support roads, bridges and other infrastructure critical to accelerating economic activity.

“In the past quarter, the economy only grew by 4%,” he said during a Sunday briefing with the bicameral panel. “This is largely because of the cut in public expenditure, especially in infrastructure.”

The deadlock comes as Congress races to reconcile its budget differences before the Dec. 22 deadline, which is crucial to prevent a reenacted 2025 spending plan.

Both chambers have emphasized that technical deliberations are still ongoing, with Ms. Suansing noting that “every single day is crucial for our technical teams to be able to finish the bill.”

The P6.793-trillion national budget, the largest in Philippine history, reflects the administration’s focus on infrastructure as a key pillar of its economic strategy, balancing fiscal prudence with the need to sustain development projects.

Both chambers have stressed the need to ensure transparency, proper cost control and accountability in project execution. The outcome of these deliberations will determine whether almost 10,000 projects — including bridges, highways and flood mitigation works — can proceed without delay.

The bicameral conference committee is expected to complete deliberations in the coming days, with President Marcos aiming to sign the final spending plan by Dec. 29. — Kenneth Christiane L. Basilio and Chloe Mari A. Hufana