Marcos expands local government support fund

PHILIPPINE President Ferdinand R. Marcos, Jr. on Monday expanded the Local Government Support Fund (LGSF) to hasten delivery of assistance through local government units (LGUs), signaling a push to decentralize public spending and accelerate community-level development.

During the launch of the “Sa Bagong Pilipinas, Bawat Bayan Makikinabang” initiative at Malacañang, the President ordered direct fund releases to LGUs to streamline implementation aimed at reducing bureaucratic delays.

“We have accelerated and streamlined the delivery of the LGSF to every local government unit,” he said in Filipino. “We did this in recognition that the needs of the people — no matter how small or large — cannot wait any longer.”

The 2026 General Appropriations Act earmarked the largest LGSF in the country’s history at P57.872 billion, an increase of P34.87 billion.

It includes the Financial Assistance to LGUs amounting to P37.492 billion, the Growth Equity Fund totaling P11.3 billion, the Support to the Barangay Development Program amounting to P8.09 billion, and the Support and Assistance Fund to Participatory Budgeting totaling P1 billion.

In the same event, Executive Secretary Ralph G. Recto said resources must be “rushed to the front” or to local governments that serve as the frontlines of public service.

He said the LGSF is part of a broader push to return taxpayers’ money in the form of “efficient, dependable and quality public services,” adding that releases will come with clear rules to ensure discipline, transparency and alignment with national priorities.

The expanded fund aims to finance additional rice assistance, health infrastructure, disaster preparedness projects, and upgrades to energy and water systems.

Aid initiatives are expected to reach more than five million families, providing rice assistance as the government seeks to ease pressure from high living costs.

The financing package will also support hospital and health station construction, medical equipment procurement, and the development of multipurpose halls and sports facilities.

Investment in farm-to-market roads and local transport networks is also included, with Mr. Marcos saying that improved logistics could lower consumer prices and boost agricultural incomes.

Water systems and rural electrification projects will likewise receive support, intended to expand access to essential utilities.

Mr. Marcos also formally handed the rice approval letter to representatives of the Union of Local Authorities of the Philippines, League of Provinces of the Philippines, League of Cities of the Philippines and League of Municipalities of the Philippines, securing commitments to monitor implementation and ensure accountability. — Chloe Mari A. Hufana