Defense Secretary Gilberto Teodoro Jr. announced that the newly turned-over $80 million military grant from the United States has already been earmarked for designated defense requirements.
During the Ilocano Dialogue on the West Philippine Sea in Batac City, Ilocos Norte, Teodoro confirmed that the financial assistance—turned over by the American Embassy at Clark on July 14—is safely in government hands.
“The $80 million donation has already been delivered,” he said, while expressing gratitude to the United States.
Newly arrived U.S. Ambassador Lee Lipton characterized the handover as a clear demonstration of Washington’s dedication to boosting the defense posture of the Philippines and reinforcing the long-standing bilateral partnership.
Furthermore, Teodoro noted that Manila anticipates additional allocations through the Philippine Enhanced Resilience Act (PERA). The U.S. Senate passed this legislation in December 2025 under the Fiscal Year 2026 National Defense Authorization Act.
“More funding is coming under the Philippine Enhanced Resilience Act every year for five years. We have already submitted what they require so we will see,” he said.
Under PERA, the Philippines stands to receive up to $2.5 billion in Foreign Military Financing grants spanning 2026 to 2030, translating to a potential annual payout of $500 million. The initiative aims to upgrade the country’s military framework and elevate joint operations between the two allies amid ongoing maritime tensions in the West Philippine Sea and the broader Indo-Pacific.
Yearly evaluations will pinpoint the modernization priorities of the Armed Forces of the Philippines, focusing on anti-ship and air defenses, maritime safety, unmanned aerial systems, cyber defense, and intelligence gathering.
Teodoro extended his appreciation to Ambassador Lipton for championing the program.
“Ambassador Lee Lipton has been a great help because he is actively supporting our efforts to strengthen resilience,” he said. He also acknowledged assistance from other partners, including Canada, Australia, and Japan.
Speaking to the students and attendees at the dialogue, the defense chief emphasized that achieving security extends beyond acquiring weaponry; it demands civic awareness, shared determination, and a strong deterrent posture.
“After awareness, you have to build resolve, which is a different level of commitment. Lastly, we have to build deterrence, which is the most painful task because it needs a lot of resources. If we are not able to build these converging efforts, our society will not be resilient and will be vulnerable to bullying and appeasement,” he said.
He ultimately challenged the younger generation to participate in meaningful discussions regarding territorial sovereignty and to safeguard the maritime domain.
“We will rely on you to be the future of our organization, the future of the national economy, and the future public leaders,” he added.