Marcos raises LGSF to record P58B, orders faster fund release to LGUs
President Ferdinand 'Bongbong' Marcos Jr. (RTVM)
President Marcos has raised the Local Government Support Fund (LGSF) to a record-high P58 billion for 2026 and ordered the faster, more direct release of funds to local government units (LGUs), saying delays in the past have hampered urgently needed projects in communities.
Speaking at the launch of “Sa Bagong Pilipinas, Bawat Bayan Makikinabang” at the Heroes Hall in Malacañan, Marcos said the LGSF was increased by more than P34 billion this year.
“Kaya’t sa kabuuan nito, umabot na ang pondong ‘yan sa halos 58 bilyong piso—pinakamataas sa buong kasaysayan ng LGSF (So in total, the fund has reached nearly P58 billion—the highest in the entire history of the LGSF),” he said Monday, Feb. 23.
The President also acknowledged that the fund previously operated largely as a demand-driven system, where releases depended on LGUs submitting complete requirements. This, he noted, made the process slow and difficult, especially for small and remote LGUs.
“Inilalabas lamang ang pondo kapag ang lokal na pamahalaan ay nakapag-submit ng lahat ng requirements para sa panukalang proyekto (Funds were released only when the local government was able to submit all the requirements for the proposed project),” he said.
“Hirap at mabagal ang proseso—kung minsan pa nawawala ‘yung request (The process is difficult and slow—sometimes the request even gets lost),” Marcos said, drawing laughter from the audience.
To address this, he said that the government streamlined procedures to expedite fund releases.
“Pinabilis at pinadiretso na natin ang pagdating ng LGSF sa bawat lokal na pamahalaan (We have sped up and made more direct the release of the LGSF to every local government),” he said, stressing that people’s needs cannot wait.
Rice aid for 5M families
Under the expanded LGSF, the President announced that more than 5 million Filipino families will receive 60 kilos of rice annually. Each family will receive 10 kilos of rice for six months every year.
“Sa tulong na nito, may maihahain na sa hapag ang bawat pamilyang Pilipino (With this assistance, every Filipino family will have food to serve on the table),” Marcos said.
Health, disaster, infrastructure projects
The President said LGSF funds will also finance hospitals and health stations, as well as the purchase of medical equipment to improve access to healthcare services.
He likewise emphasized the need to strengthen disaster preparedness amid worsening climate change impacts.
“Bibigyan natin ng suporta ang ating mga kababayan upang magkaroon ng multi-purpose halls… na maaaring magamit bilang evacuation centers (We will support our countrymen so they can have multi-purpose halls… that can be used as evacuation centers),” he said.
He added that these facilities will be designed to withstand strong typhoons and earthquakes.
Marcos also ensured continued funding for farm-to-market roads and local road networks to improve the mobility of goods and services.
“Makatutulong ito upang bumaba ang presyo ng mga bilihin at tumaas naman ang kita ng mga nagsasaka (This will help lower the prices of goods and increase farmers’ incomes),” he said.
Water supply systems and electrification projects will likewise be supported to ensure communities have access to clean water and reliable power, he added.
Higher National Tax Allotment
The President also disclosed that around P1.19 trillion in National Tax Allotment has already been released to LGUs for 2026.
“Mas mataas ito ng higit 15 porsyento kumpara ng 2025 (This is more than 15 percent higher compared to 2025),” he said.
Marcos said the initiative forms part of the broader goal of advancing a “Bagong Pilipinas” where development is felt in every region and community.
“Bahagi ang LGSF ng mas malawak nating layunin na isulong ang Bagong Pilipinas kung saan ang pag-unlad ay nararamdaman sa bawat rehiyon at bawat komunidad (The LGSF is part of our broader goal to advance a New Philippines where development is felt in every region and community),” he said.
The President urged LGUs and citizens alike to work together to ensure that public funds are used properly and that projects deliver tangible benefits to communities.
This national program aims to close the “opportunity gap” by translating national economic stability into real household security, so progress is measured by the well-being of every Filipino family.
“By working with LGUs, President Marcos Jr. ensures that support for essential needs like food (rice), health, education, and livelihood reaches citizens more quickly and transparently,” Malacañang said.
The 2026 General Appropriations Act (GAA) has allocated the largest Local Government Support Fund (LGSF) in the country’s history at P57.872 billion, an increase of P34.87 billion. It includes the Financial Assistance to LGUs (FALGU) amounting to P37.492 billion, the Growth Equity Fund (GEF) totaling P11.3 billion, the Support to the Barangay Development Program (SBDP/NTF-ELCAC) amounting to P8.09 billion, and the Support and Assistance Fund to Participatory Budgeting (SAFPB) totaling P1 billion.