The Department of Budget and Management (DBM) has released P9.753 billion to the Commission on Higher Education (CHED) to address funding deficiencies in the implementation of the Free Higher Education (FHE) Program in 108 state universities and colleges (SUCs) nationwide.
The release covers validated arrears incurred during Academic Years 2022–2023, 2023–2024, and 2024–2025, providing funding support for costs previously absorbed by the beneficiary SUCs.
CHED, through the Unified Student Financial Assistance System for Tertiary Education (UniFAST), will facilitate the corresponding release of funds to the concerned SUCs in accordance with applicable guidelines.
DBM Acting Secretary Kim Robert De Leon said the release reflects President Ferdinand R. Marcos Jr.’s directive to keep education among the government’s priorities while ensuring that limited public resources are responsibly managed.
“With this release, we are making nearly P10 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 the additional funding honors commitments to the SUCs while “protecting the government’s capacity to fund other urgent national priorities.”
The P9.753-billion funding will help ease financial pressures on SUCs that had used their available institutional resources to cover FHE-related costs.
With the deficiencies addressed, SUCs will have greater fiscal space for other lawful institutional priorities, including academic and research programs, student services, laboratories, libraries, information technology resources, and learning facilities.
The funding may also support medical, dental, guidance, athletic, and cultural services, as well as the rehabilitation, improvement, or expansion of academic and other university facilities, subject to existing budgeting, accounting, and auditing rules and available funds.
The release was charged against DBM’s built-in appropriations under the 2026 General Appropriations Act and the Special Account in the General Fund–Higher Education Development Fund.
The FHE Program was established under Republic Act No. 10931, or the Universal Access to Quality Tertiary Education Act, which provides free tuition and other school fees in SUCs and CHED-recognized local universities and colleges.
De Leon said responsible budgeting requires the government to prioritize expenditures based on available fiscal space, legal authority, readiness, and the urgency of competing national requirements.
“Government resources are not unlimited. Therefore, the challenge before us is not merely to spend, but to ensure that every peso disbursed addresses the right needs at the right time, without neglecting other essential government services,” he said.