Although the Philippine Health Insurance Corp. (PhilHealth) was "taught a lesson" with its zero-subsidy budget, Senator Pia Cayetano expressed her belief that that the action still violated the law.

"So siguro naturuan nga ng leksyon (So perhaps we did teach them a lesson), okay, but I'm saying it violates the law pa rin. Kung [mag]tuturo ng leksyon (If we're going to teach them a lesson) it should still be in the boundaries of the law," Cayetano said in an interview on Saturday, Dec. 14, on DWIZ.

Cayetano said that under the Sin Tax Law, 80 percent of revenues from tobacco products and sugar-sweetened beverage must be allocated to PhilHealth. For 2025, Cayetano said that the collected amount was P69 billion.

"Under sa National Expenditure Program (NEP), yung binibigay ng gobyerno, P53 billion yung inallocate nila (Under the NEP, which the government provides, P53 billion was allocated). Under the bicam, zero. By law it is required to deliver that fund. So dapat yung fund na yan dineliver (So that fund should have been delivered), and let the board allocate it properly," she added.

The senator also stated that the zero allocation was in violation of the Sin Tax Law and that she's "seriously considering" questioning this before the Supreme Court (SC).

In an earlier statement, Cayetano said that she was deeply disappointed by the substantial cuts made to the 2025 budgets of the Department of Health (decreased by P25.80 billion), Department of Education (decreased by P11.57 billion), Commission on Higher Education (decreased by P26.91 billion), and the University of the Philippines (decreased by P641.38 million).

"The national budget, as the principal development tool of the government, reflects its priorities. Based on the cuts that have been made, it appears that health and education - two of the most pressing issues of the Filipino family - is not a priority," she said.

Cayetano said that these cuts hit directly at the millions of Filipinos who are already struggling to keep their families healthy, and to send their children to school.

She added that health and education must always be our top priority if we are to build a stronger, more sustainable future for all. We must never compromise on our commitment to always put quality healthcare and education first for every Filipino, as these serve as our foundation for a better future for generations to come.

"As senior vice chairperson of the Finance Committee who has handled these agencies’ budgets in the Senate, I am bothered by this change in direction. We have made significant progress over the years, but this is a terrible step backward," she said.

Yet Cayetano agreed with the sentiments of Senate President Francis "Chiz" Escudero that while this was not a perfect budget, it reflected the administration's thrust.

"Hindi ko kinu-question ang judgment niya (I am not questioning his judgement). I know that the leadership has to make decisions. Ako (As for me), I can only speak for health and education kasi yan ang hinawakan ko (because I've handled that)...Ang sa akin lang (It's just that for me), that's why I said there's always some level of disappointment, I've been doing this for six years, it's not new to me," she said.

"I have respect for the work that has to be done. Hindi ko kini-criticize ang decision nila. Nagbibigay lang ako ng aking observations and my personal position na sana, kung meron silang nakita, at alam ko may nakita sila ng mga programs sa DepEd at sa mga hinawakan kong committee na nabawasan (I'm not criticizing their decision. I'm just sharing my observations and my personal stance that I hope, if they noticed something, and I know they did, regarding the programs in the Department of Education and in the committees I’ve been involved with that have been reduced)...Sana sa akin, nalagay pa rin doon sa (For me, they should have put it in) same department because remember under the Constitution, DepEd should have the highest budget," she added.

Meanwhile, former Senator Panfilo "Ping" Lacson said that only the President can save the Constitution from becoming a "wastebasket-bound by exercising his line item veto power once the enrolled bill lands on his desk."

"How so? The Bicameral Conference Committee reduced the DepEd budget to P737 billion and increased that of the DPWH to P1.113 trillion," he stated.

Lacson explained that this "blatantly" violates Art XIV Sec 5(5) which declares that “The State shall assign the highest budgetary priority to education and ensure that teaching will attract and retain its rightful share of the best available talents through adequate remuneration and other means of job satisfaction and fulfillment.”