The Supreme Court has unanimously ordered the return of ₱60 billion from the National Treasury to the Philippine Health Insurance Corporation (PhilHealth), ruling that the remitted funds must be restored through the 2026 General Appropriations Act.
“The SC ordered that the remitted funds amounting to ₱60 billion be returned to PhilHealth through the 2026 GAA,” the decision stated.
Penned by Associate Justice Amy Lazaro-Javier, the ruling also permanently barred the transfer of the remaining ₱29.9 billion that was scheduled for remittance in November but was stopped earlier by the Court.
The high court voided a Special Provision in the 2024 GAA and a Department of Finance circular, declaring both as measures “issued and implemented with grave abuse of discretion amounting to lack or excess of jurisdiction.”
These provisions authorized the diversion of excess reserve funds of government-owned or controlled corporations to the National Treasury to support unprogrammed appropriations.
The ruling restores PhilHealth’s funds and halts further transfers deemed inconsistent with legal limits.