The Department of Budget and Management (DBM) has disbursed ₱9.753 billion to the Commission on Higher Education (CHED) to resolve financial shortfalls stemming from the Free Higher Education (FHE) Program across 108 state universities and colleges (SUCs) nationwide.
The allocated capital will clear validated balances accumulated over Academic Years 2022–2023, 2023–2024, and 2024–2025, reimbursing public higher education institutions that had previously covered these tuition expenses using internal operating funds.
Disbursements to recipient SUCs will be processed through CHED’s Unified Student Financial Assistance System for Tertiary Education (UniFAST) under existing operational regulations.
Budget Secretary Kim Robert De Leon affirmed that the funding aligns with President Ferdinand Marcos Jr.’s directive to prioritize the education sector while maintaining prudent fiscal oversight over state finances.
“With this release, we are making nearly ₱10 billion available to address funding requirements of our state universities and colleges while maintaining that careful fiscal balance,” De Leon said in a statement Sunday.
He added that providing this additional financial backing honors government obligations to SUCs while “protecting the government’s capacity to fund other urgent national priorities.”
The release of the ₱9.753 billion sum is intended to relieve public higher education institutions from operational strain caused by advancing institutional capital to maintain free college education services.
Clearing these historical arrears will allow SUCs to reallocate internal funds toward key development projects, including research initiatives, student welfare services, information technology upgrades, and library and laboratory maintenance.
The money may also support medical, guidance, dental, cultural, and sports programs, alongside the physical restoration, upgrade, or expansion of university structures, subject to availability of funds and oversight guidelines.
Funding for the disbursement was drawn from CHED’s built-in allocation under the 2026 General Appropriations Act and the Special Account in the General Fund – Higher Education Development Fund.
Enacted under Republic Act No. 10931, or the Universal Access to Quality Tertiary Education Act, the FHE Program guarantees tuition-free tertiary education and covers miscellaneous fees for qualified students in SUCs and recognized local universities and colleges.
De Leon reiterated that responsible public expenditure requires balancing urgent needs with structural budgets, legal bases, and execution capacity.
“Hindi unlimited ang resources ng gobyerno. Kaya ang hamon sa atin ay hindi lamang gumastos, kundi tiyaking bawat pisong inilalabas ay napupunta sa tamang pangangailangan, sa tamang panahon, at nang hindi napapabayaan ang iba pang mahahalagang serbisyo ng pamahalaan,” he said.