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Manila Bulletin devider Business devider The Economy devider DBM settles P9.8-billion debt to 108 state colleges for free tuition

DBM settles P9.8-billion debt to 108 state colleges for free tuition

Published Aug 16, 2026 12:27 pm
The government released ₱9.75 billion to address long-standing funding shortfalls under its tuition-free tertiary education program, clearing obligations that forced state colleges and universities to absorb costs for three academic years.
In a statement on Sunday, Aug. 16, Acting Budget Secretary Kim Robert C. de Leon, said they funneled the funds through the Commission on Higher Education (CHED) to cover arrears at 108 state universities and colleges spanning the 2022 to 2025 academic years.
The disbursement will be drawn from the 2026 national budget and the Higher Education Development Fund.
De Leon said the release aims to ease financial strain on state institutions, which were forced to dip into internal operational funds to sustain free tuition and subsidize student fees mandated under the Universal Access to Quality Tertiary Education Act.
The law, signed in 2017, guarantees free tuition and school fees in public higher education institutions nationwide.
“Every peso in the national budget has competing demands,” De Leon said. “With this release, we are making nearly 10 billion pesos available to address funding requirements of our state universities and colleges while maintaining that careful fiscal balance.”
The cash injection gives universities fiscal room to redirect institutional resources toward deferred capital expenditures and campus operations. Beyond settling back pay, De Leon said the funds are expected to support laboratory and library upgrades, IT infrastructure, facility maintenance, and expanding campus infrastructure.
Sustaining access to higher education remains a central pillar of President Ferdinand Marcos Jr.’s human capital agenda, even as his economic team balances social spending against tight fiscal constraints.
The Marcos administration is working to narrow its budget deficit while managing rising public debt levels.
“Government resources are not unlimited,” De Leon said. “Our responsibility is to make sure that limited government resources are directed where they are most needed, without compromising other equally important programs and services.:
The budget department said that funding will be systematically disbursed via the Unified Student Financial Assistance System for Tertiary Education once compliance and verification guidelines are finalized.

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Department of Budget and Management (DBM) Free College Education
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