Approximately P82 billion in development funding is set to be released in 2026 to support projects of local government units (LGUs), Malacañang announced on Saturday.
The funding plan was finalized during a meeting led by Executive Secretary Ralph Recto at Malacañang Palace in Manila on Thursday. Present at the meeting were other Palace officials, 29 provincial governors, 16 city and municipal mayors, and seven representatives of governors.
According to the Office of the Executive Secretary (OES), the gathering focused on detailing the implementation framework for this year’s local projects.
“They were joined by 16 city and municipal mayors and seven representatives of governors in discussing the rollout of the Local Government Support Fund (LGSF), a direct-to-LGU allocation which has been earmarked P57.88 billion in 2026 national budget,” the OES said.
The Local Government Support Fund (LGSF) provides financing for priority local initiatives, including the construction and improvement of roads, evacuation centers, health facilities, and climate-resilient infrastructure. Projects to be funded will be identified and carried out by LGUs, following the program menu outlined in the 2026 General Appropriations Act.
The OES emphasized that the funded initiatives are aligned with key national development priorities, such as food security, healthcare, education, infrastructure expansion, and livelihood generation.
Funding for the LGSF was increased by P37.4 billion after President Ferdinand R. Marcos Jr. directed greater involvement of LGUs in implementing government projects to ensure faster and more efficient delivery of public services.
Recto noted that the LGSF allocation represents only a fraction of the P1.393 trillion national tax share earmarked for cities, provinces, municipalities, and barangays in 2026.
“President Marcos believes that LGUs have the capacity, experience and means to implement national projects,” he said.
“The President has repeatedly said that LGUs should not be passive recipients of national projects but must be active implementors of the same,” Recto added.
PNA PHOTO