Despite lawmakers' earlier promises to eliminate unprogrammed appropriations, the bicameral conference committee agreed to restore them to nearly P243 billion, close to the House's proposal. This amount is slightly higher than the House's original P243.2 billion. The decision comes amid controversies over the funds' use.
On December 21, 2025, in Manila, the bicameral conference committee on the 2026 national budget decided to restore unprogrammed appropriations (UA) to P243.4 billion, an increase of P178.1 million over the House's proposed P243.2 billion. The Senate-approved General Appropriations Bill had cut it to P174.55 billion, suggesting an effort to reduce these controversial standby funds. However, in the final deliberations, lawmakers reversed that direction.
UA represent standby appropriations that can only be released if the government generates excess revenue or secures additional foreign loans. Senate Finance Committee Chair Sherwin Gatchalian defended the restoration, noting that the 2026 UA level is already significantly reduced from prior years, starting from the executive branch's initial proposal of P249.989 billion, down from P363.42 billion in the 2025 General Appropriations Act.
These funds drew controversy earlier this year after reports from the Philippine Center for Investigative Journalism highlighted their role in funding flood control projects now under scrutiny for alleged corruption. To prevent misuse, the Senate fully defunded the P60-billion lump-sum allocation for the 'Strengthening Assistance for Government Infrastructure and Social Programs,' originally intended for flood control and similar initiatives. "I can guarantee to our constituents that this (UA) will no longer be abused for flood control. This will already be a targeted program. There are guidelines and rules in place to prevent the funds from being diverted to flood control," Gatchalian stated.
In addition, the bicam agreed to revive the Joint Congressional Oversight Committee on Public Expenditures (JCOCPE), a powerful body dormant for years. The idea was raised by Sen. Loren Legarda during deliberations, and though House Minority Leader Marcelino Libanan's motion to include it in the budget was not formally acted on, Gatchalian said it could still be convened via standing committees like finance and appropriations. This push for stronger oversight responds to repeated irregularities in major infrastructure and assistance programs, especially flood control and lump-sum funds.
