Executive Secretary Ralph Recto meets with 29 provincial governors at Malacañan Palace in Manila on Thursday (Feb. 19, 2026) to discuss the allocation of an PHP82.3-billion fund for local projects this year. The local officials enumerated several projects focused on food security, health, education, infrastructure and livelihood. (Photo from the Office of the Executive Secretary)
The national government will release around ₱82 billion in development funds next year to bankroll local government unit projects, underscoring a renewed push to place LGUs at the center of national development efforts, Malacañang said on Saturday.
The funding plan was finalized during a high-level meeting at Malacañan Palace convened by Executive Secretary Ralph Recto and attended by Palace officials along with 29 provincial governors. Sixteen city and municipal mayors, as well as seven representatives of governors, also joined the discussions.
According to the Office of the Executive Secretary, the meeting focused on the rollout of the Local Government Support Fund, a direct allocation to LGUs that has been earmarked ₱57.88 billion under the proposed 2026 national budget.
The LGSF is designed to finance priority local initiatives, including farm-to-market roads, evacuation centers, health facilities, and climate-resilient infrastructure. Projects will be identified and implemented directly by LGUs, based on a menu of eligible programs outlined in the 2026 General Appropriations Act.
Malacañang said the projects are aligned with the administration’s core development priorities, particularly food security, health, education, infrastructure expansion, and livelihood generation.
Funding for the LGSF was significantly increased by ₱37.4 billion following a directive from President Ferdinand R. Marcos Jr. to further involve LGUs in implementing national programs, a move aimed at accelerating project execution and improving service delivery on the ground.
Recto noted that the LGSF represents only a fraction of the ₱1.393 trillion national tax share allocated to provinces, cities, municipalities, and barangays for 2026.
The President, he said, has consistently emphasized that LGUs possess the capacity, experience, and local insight needed to carry out major development projects, and should be treated not merely as beneficiaries of national programs, but as active partners in governance and nation-building.
