US Defense Secretary Pete Hegseth (L) is welcomed by Philippines’ Defence Secretary Gilberto Teodoro (R) during the Association of Southeast Asian Nations (ASEAN) Defence Ministers’ Informal Meeting with the United States in Cebu, central Philippines, on October 28, 2026. (Photo by ELOISA LOPEZ / POOL / AFP)
MANILA, Philippines — The Philippines has received commitments for increased defense modernization program funding from the United States and the fast-tracked transfer of a decommissioned warship from Japan amid continuing maritime friction in its territorial waters.
Defense Secretary Gilberto Teodoro Jr. held talks with US Secretary of War Pete Hegseth in Cebu on Wednesday on the sidelines of the Association of Southeast Asian Nations defense meetings, with Manila seeking to strengthen its military sector as tensions continue with China in the West Philippine Sea.
“Secretary Hegseth announced an increase in the Department of War’s security cooperation funds to accelerate the Armed Forces of the Philippines’ modernization and enhance interoperability along the First Island Chain,” the department said in a readout of the meeting.
However, it did not disclose the amount or specify which modernization projects of the Armed Forces of the Philippines would benefit.
The First Island Chain is a strategic chain of islands stretching from Japan through Taiwan to the Philippines.
Previous commitments
Hegseth and Teodoro also agreed to launch an initiative to modernize command-and-control systems used to coordinate operations between the two countries’ armed forces.
The department did not provide further details on the initiative or when it would begin.
Separately, the US Congress authorized up to $2.5 billion in Foreign Military Financing and up to $1 billion in military sales loans for the Philippines under the 2026 National Defense Authorization Act, according to the Congressional Research Service.
The financing authorization covers up to $500 million annually from 2026 to 2030, although authorized amounts are not necessarily funds already appropriated or released.
For fiscal year 2026, Congress appropriated at least $100 million in Foreign Military Financing for the Philippines.
The latest funding increase announced by Hegseth concerns the Department of War’s security cooperation funds. The readout did not specify how the increase relates to existing US assistance commitments.
Japanese warship
Teodoro also met Japanese Defense Minister Shinjiro Koizumi, with the two parties agreeing to work toward the transfer of the first Abukuma-class warship to the Philippine Navy as soon as possible after its decommissioning.
The statement did not identify which vessel would be transferred first or specify a delivery date.
In July, Teodoro said the Philippines was set to receive five Abukuma-class destroyer escorts from Japan, with administrative details still being worked out.
He said the vessels could arrive within two to three years and would be provided without payment to Japan, although the Philippines would shoulder transport and other costs.