Malacañang was elated after the United States exempted a portion of its military financing to the Philippines from its foreign aid freeze.

Palace press officer Claire Castro said the Philippine government sees the move as a huge help, especially for the goal to modernize the Armed Forces of the Philippines (AFP).
"Of course, natutuwa po tayo nagkaroon nga po ng direktiba si US President Trump na 90 days magkakaroon ng… ipi-freeze ang foreign aid. So, kung nagkaroon po tayo ng exemption at ibibigay po at iri-release ang 500 million dollars foreign financing sa atin. Ito po ay napakalaking bagay at nagpapasalamat po tayo sa suporta na iyan (Of course, we are happy that while US President Trump ordered a 90-day freeze on foreign aid, we are given an exemption and the $500 million foreign financing for us will still be released. This is a huge help and we are grateful for this support)," Castro said in a Palace briefing on Tuesday, Feb. 25.
Castro noted that the military financing was made under former US president Joe Biden, and was adopted by his successor, President Donald Trump.
"So, masarap po na makatanggap ng ganitong good news at ang suporta po ng US sa atin ay hindi po mapapasubali (So, it feels good to receive such good news and the US' support to us will not be questioned)," she said.
With the additional financing from the US, the AFP modernization will get a huge boost, she also said.
Meanwhile, the Palace official refused to comment on the potential impact of the US aid pause to other sectors receiving aid from Washington, saying the mere fact that a portion of the US financing was exempted from the freeze was already a big thing.
"Wala pa po tayong anumang reaksiyon patungkol diyan pero the mere fact po na na-exempt po tayo at tayo po ay kumbaga hindi mapi-freeze iyong foreign aids sa atin – iyon po, napakalaki na pong epekto noon para sa bansa natin iyong mga tulong na ito (We have no reaction on that but the mere fact that we were exempted, meaning foreign aids to us won't be pause, is already a big impact to the country)," she said.
On Monday, Feb. 24, the Department of Foreign Affairs (DFA) confirmed that Washington has exempted a portion of its foreign military financing for Manila from its global foreign aid freeze.
Foreign Affairs spokesperson Ma. Teresita Daza confirmed that Manila has been informed of the waiver issued to a portion of the US military aid for the Philippines.
"The Philippines has been informed of the waiver issued to a portion of the US foreign military financing for the Philippines," Daza said when sought for confirmation if Washington indeed exempted Manila from its foreign aid pause.
READ MORE: US exempts 'portion' of military financing for PH from global aid pause—DFA