P12.3-B free tuition gap in SUCs to be sourced from CHED, Congress funds
MANILA, Philippines — The House has approved full funding of the P12.307-billion deficit under the Universal Access to Quality Tertiary Education Act to cover free tuition in state universities and colleges.
Rep. Mikaela Suansing (Nueva Ecija, 1st District), chair of the appropriations committee, said the P12.307-billion deficit will be sourced from two channels: a special provision in the 2026 General Appropriations Act (GAA) and Congress' own funds.
During plenary debates on Thursday, September 25, Suansing broke down the allocation.
The special provision under the Commission on Higher Education (CHED), to be authorized by Congress, will release P7.821 billion, while the remaining P4.486 billion will come from funds originally set aside for Congress.
"So just to make it clear, the P7.82 billion that will be released, requested and released by CHED for the budgetary support, will be sourced from the Higher Education Development Fund (HEDF), while the remaining P4.49 billion will be released and funded by the legislature through the General Appropriations Act," Suansing said.
The deficit reflects the funding shortfall of SUCs from 2022 to 2025, stemming from how the Free Higher Education program is implemented.
Under the program, CHED reimburses SUCs for students covered by the mandatory free tuition, but the enrollment data used was reportedly based on previous years instead of projected figures, resulting in the program being underfunded.
HEDF to be tapped
During Rep. Robert Nazal's (BH Party-list) interpellation, CHED was pressed on how much needs to be settled with higher education institutions to cover free tuition.
Rep. Monique Lagdameo (Makati, 1st District), CHED's budget sponsor, clarified that the reported shortfall is not necessarily the commission's "debt," but rather as a "recognition of the needs of the SUCs."
She explained that from 2022 to 2025, CHED directly released the appropriated budgets to higher education institutions.
To address current funding gaps, Lagdameo said the HEDF — established to support CHED in times of fiscal deficiencies — would be tapped.
However, Nazal pointed out that the same arrangement was already in place under the 2024 GAA, which allowed the HEDF to cover funding gaps — a provision that was later removed in the 2025 budget.
Lagdameo, meanwhile, explained that CHED considered the HEDF necessary only at the time in 2024, which is why it was no longer included in the 2025 GAA.
She added that the HEDF would cover part of the payments to SUCs and allocate another portion for scholarships, noting that it currently has P11.721 billion available.
Suansing said the special provision pertaining to the HEDF and additional funding from Congress' own appropriations will be formally introduced during the period of amendments.
SUCs cut back from own funds
On the other hand, Rep. Renee Co (Kabataan Party-list) warned that the funding deficiencies have compelled SUCs to divert resources, limiting student slots, delaying classroom construction and stalling key projects and services.
"This could have meant more slots to youths, to students na sanang nakapasok sa schools. This could have meant classrooms or this could have been project services na sana napondohan o nasimulan pero hindi po nagawa because of this deficiency," she said.
(This could have meant more slots for the youth and students who could have entered schools. This could have meant classrooms or this could have been project services that could have been funded or initiated but were not implemented because of this deficiency.)
"Nacocompel po ang SUCs to cover deficiencies by realigning or tapping internally-generated funds," she added.
(SUCs are compelled to cover deficiencies by realigning or tapping internally-generated funds.)
Co stressed that deviating from projected enrollment figures as the basis for SUCs' budgetary needs has created "systemic deficiencies," forcing cutbacks in research, extension programs and infrastructure — ultimately penalizing students, faculty and regional development.
Proposed budget
CHED has a proposed P27.4-billion budget for the Universal Access to Quality Tertiary Education Act under the 2026 National Expenditure Program (NEP).
The appropriations panel's budget amendment and review subcommittee (BARC) has also approved the realignment of P6.62 billion from flood control funds to the tertiary education subsidy.
SUCs, meanwhile, are set to receive P134.99 billion in new appropriations, a 5.45% increase from their 2025 GAA.
Co, however, noted that while the deficiencies will be addressed, some SUCs are still expected to receive reduced funding compared to fiscal year 2025. This is on top of the multi-billion-peso priority projects that remain underfunded, she added.
These allocations are still expected to change, and likely increase based on the appropriation panel's sentiments, once congressional commitments are reflected, which will be finalized by the House after the period of amendments.
Still, the final say is with the bicameral conference committee, after the House and Senate approve their versions of the 2026 budget bill.
Congress has committed to ensuring the education sector's budget is prioritized and given the highest allocation, with a proposed P1.224 trillion for basic and higher education.
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