P9.75 Billion Allocated to Address Free College Education Funding for 108 State Universities and Colleges

Manila: 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 Free Higher Education (FHE) Program across 108 state universities and colleges (SUCs) nationwide.

According to Philippines News Agency, the allocation covers validated arrears from Academic Years 2022-2023, 2023-2024, and 2024-2025. This funding will support costs previously absorbed by the beneficiary SUCs. CHED, through the Unified Student Financial Assistance System for Tertiary Education (UniFAST), will manage the release of funds to the concerned SUCs following applicable guidelines.

DBM Acting Secretary Kim Robert De Leon noted that the release aligns with President Ferdinand R. Marcos Jr.'s directive to prioritize education while ensuring responsible management of limited public resources. He stated that the nearly P10 billion allocation supports the funding requirements of state universities and colleges while maintaining fiscal balance.

The PHP9.753-billion funding aims to alleviate financial pressures on SUCs that used their institutional resources to cover FHE-related costs. With the deficiencies addressed, SUCs will have more fiscal space for other institutional priorities, including academic and research programs, student services, laboratories, libraries, information technology resources, and learning facilities.

Additionally, the funding may assist with medical, dental, guidance, athletic, and cultural services, as well as the enhancement or expansion of academic and other university facilities, subject to existing budgeting, accounting, and auditing rules, and available funds.

The funding release was charged against DBM's appropriations under the 2026 General Appropriations Act and the Special Account in the General Fund-Higher Education Development Fund. The FHE Program is 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 emphasized the importance of responsible budgeting, stating that government resources are not unlimited. He highlighted the need to prioritize expenditures based on available fiscal space, legal authority, readiness, and the urgency of competing national requirements.