The third day of bicameral conference committee deliberations on the proposed ₱6.793-trillion 2026 national budget was suspended on Monday, Dec. 15, amid a deadlock over the Department of Public Works and Highways’ (DPWH) budget.

Senate Finance Committee Chair Sherwin Gatchalian said the suspension was ordered to allow lawmakers to resolve disagreements on the Senate’s reduction of about ₱45 billion from the DPWH’s proposed budget, which he stressed was based on data and inputs provided by the agency itself.

The announcement of cancellation was made even as House conferees were on their way to PICC.

Gatchalian explained that the Senate applied “adjustment factors” on construction material prices submitted by the DPWH to lower project costs across the board, resulting in savings of roughly ₱45 billion for local projects.

“These adjustment factors came from DPWH. We did not come up with them on our own,” Gatchalian said, noting that the Senate relied on the agency’s Construction Materials Price Data (CMPD).

“We do not have engineers in the Senate. The data and computation all came from them, and we merely applied it,” he added.

He recalled that the issue was discussed in at least two Senate hearings, during which DPWH officials, including Secretary Vince Dizon, said that lower material prices could reduce project costs. Based on those statements, Gatchalian said the Senate proceeded with the budget cuts.

However, during the bicameral conference committee meeting, DPWH officials raised concerns that the adjustment factors might not be uniformly applicable, citing varying conditions across projects. Gatchalian said this position differed from the Senate’s view and that of the House, resulting in a standoff.

“This is where the difference in opinion comes in. The House has one view, and the Senate has another,” he said.

Asked whether the Senate erred in its computation, Gatchalian rejected the claim, saying DPWH representatives even coordinated directly with Senate staff during the process. “We are confident that our application followed the documents submitted to us by DPWH,” he said.

Because of the unresolved issue, Gatchalian said the bicam proceedings were postponed.

“We decided to postpone the bicam today so we can resolve this issue with the House and with DPWH,” he said, adding that the Senate remains firm against approving what it considers overpriced items in the budget.

Asked if the situation amounted to a deadlock, Gatchalian said it could be considered one, but only on the DPWH issue.

“You can call it a deadlock on that aspect, but we are looking for a solution,” he said.

“I am committed to working with DPWH to find that solution,” he added.

DPWH Secretary Vince Dizon on Sunday urged Congress to restore the funds slashed from the agency’s 2026 budget, a move that raised skepticism among senators. Dizon appeared during the second day of the bicameral talks to appeal for the restoration of the ₱45-billion reduction.

Gatchalian said the Senate’s position remains anchored on the DPWH’s own submissions, reiterating that the chamber’s decision to cut the budget was supported by the agency’s data and prior statements.