Funding gap relief gives 108 SUCs more room for academic programs

The release of P9.753 billion by the Department of Budget and Management (DBM) gives 108 state universities and colleges (SUCs) greater fiscal space for academic programs and student services after covering funding deficiencies under the Free Higher Education (FHE) Program.

The DBM released the funds to the Commission on Higher Education (CHED) to settle validated arrears incurred by SUCs from Academic Years 2022-2023 to 2024-2025.

The funding covered Free Higher Education-related costs that beneficiary SUCs had previously absorbed using their institutional resources.

CHED, through the Unified Student Financial Assistance System for Tertiary Education (UniFAST), facilitated the distribution of the funds to the concerned SUCs under existing guidelines.

DBM Acting Secretary Kim Robert De Leon said the release would help institutions redirect their resources toward other legitimate university needs.

“With this release, we are making nearly P10 billion available to address funding requirements of our state universities and colleges while maintaining that careful fiscal balance,” De Leon said.

The additional fiscal space could support academic and research programs, student services, laboratories, libraries, information technology resources and learning facilities.

The funds could also be used for medical, dental, guidance, athletic and cultural services, as well as the rehabilitation, improvement or expansion of university facilities, subject to government budgeting, accounting and auditing rules.

De Leon said the government still needed to balance education funding with other national priorities because public resources remained limited.

“Hindi unlimited ang resources ng gobyerno,” De Leon said, stressing that government spending must address urgent needs without neglecting other essential services.

The release was charged against the 2026 General Appropriations Act and the Special Account in the General Fund-Higher Education Development Fund.

The FHE Program operates under Republic Act (RA) No. 10931, which provides free tuition and other school fees in SUCs and CHED-recognized local universities and colleges.