President Bongbong Marcos ordered the direct release of P58 billion under the Local Government Support Fund to accelerate assistance to local government units nationwide. The allocation forms part of the 2026 General Appropriations Act and will now be released straight to the authorized government servicing banks of LGUs to allow faster project implementation.
The fund will finance programs identified and implemented by local governments, including projects in infrastructure, health, education, food security, and livelihood support under the 2026 budget.
During a meeting in Malacañang with governors, mayors, and other local chief executives, Marcos stressed that local leaders are central to delivery on the ground. “As local chief executives, you are the first to feel the problems and the first to hear the people’s grievances. Because you know the true situation in your communities, change begins with you,” he said.
The Palace also clarified the previous process for releasing funds. “Funds were released only after the local government had submitted all the requirements for the proposed project,” it said, noting that documentation requirements had slowed earlier disbursements.
Executive Secretary Ralph Recto led discussions on implementation to ensure the allocation reaches LGUs without unnecessary delay. The administration said local governments are expected to act as direct implementers of projects funded under the allocation to speed up delivery and reduce bottlenecks.
The Local Government Support Fund is part of the broader fiscal transfers to LGUs under the 2026 national budget. The directive aims to streamline releases while maintaining compliance requirements as projects move forward across provinces, cities, municipalities, and barangays.
