House to redirect P12 billion budget for ‘free college’ law, commits to wipe out SUC deficit

The House of Representatives will channel P12 billion from the proposed P6.7 trillion national budget to state universities and colleges (SUCs) to cover a long-standing deficit in the free college program, lawmakers said on September 26.

House appropriations chair Mikaela Suansing explained that the reallocation would ensure all SUCs receive full funding for free college by 2026, noting that Congress aims to close a lingering P12.3 billion shortfall identified for 2025.

“We have been informed by the SUCs that the total deficiency as of the year 2025 amounts to P12,307,136,000,” Suansing stated.

She explained that P4.49 billion will be paid through legislative changes during budget discussions, with the remaining P7.82 billion coming from the Commission on Higher Education’s Higher Education Development Fund.

“What happens to the remaining deficit of P4,486,113,000? The legislature commits to funding the deficit, and with that, the total P12.3 billion deficit to SUCs will all be paid by fiscal year 2026,” the lawmaker added.

The move, Suansing said, was a historic pivotal step after years of lobbying by the schools.

“This is a historic day because after many years the SUCs have been lobbying for this deficiency to be addressed. Today, we have all come together to address this situation and ensure that all accountabilities are addressed and closed come fiscal year 2026,” she justified.

Tingog party-list Rep. Jude Acidre lauded the decision, saying it was overdue relief for higher education institutions and their students.

“I commend the leadership of Congress and CHED for ensuring that the P12.3 billion deficit will now be fully funded. This is a victory for our SUCs and our students. But beyond immediate relief, we must fix the root of the problem,” Acidre said.

During plenary debates, Suansing clarified that the additional funding would come on top of existing allocations for Commission on Higher Education (CHED) programs such as the Tertiary Education Subsidy (TES) and the Tulong Dunong Program (TDP).

“We would also like to highlight that, in addition to the P4.5-billion deficit, Congress will provide an extra P9.3 billion for the TES, Tertiary Education Subsidy, and Tulong Dunong Program,” she said. “All of these funds will go to CHED to ensure that Filipino youth have access to quality education and can graduate from college.”

A larger reallocation of P37.3 billion from the Department of Public Works and Highways (DPWH) to the education sector was also approved by lawmakers, with P22.5 billion of that amount set aside for new classrooms and school supplies.

Citing unused monies scheduled to expire by the end of 2025, Suansing emphasized that these increases will only occur if the Commission on Higher Education improves its budget utilization rate.

The Universal Access to Quality Tertiary Education Act or UAQTEA, signed in 2017, continues to face scrutiny over sustainability and accessibility amid rising enrollment and concerns about equitable distribution of benefits.