DBM releases P9.75 billion for free higher education

Facade of the Department of Budget and Management's building.

Wikimedia Commons / Judgefloro

MANILA, Philippines — The Department of Budget and Management (DBM) has released P9.75 billion to the Commission on Higher Education (CHED) to settle the Free Higher Education or FHE program costs that state universities and colleges (SUCs) previously absorbed using their available institutional resources.

The release will apply to the arrears covering academic years 2022-2023, 2023-2024 and 2024-2025, the DBM said in a statement.

CHED, through the Unified Student Financial Assistance System for Tertiary Education, will facilitate the corresponding release of funds to the concerned SUCs in accordance with the applicable guidelines.

The FHE Program, established under Republic Act 10931 or the Universal Access to Quality Tertiary Education Act, provides free tuition and other school fees in SUCs and CHED-recognized local universities and colleges.

Acting Budget Secretary Kim Robert de Leon said that the release reflects President Marcos’ order to keep education among the government’s foremost priorities, even as it carefully balances competing demands for limited fiscal resources.

“This is nearly P10 billion in additional fiscal support for 108 SUCs. When assessing the government’s overall support for SUCs, we should look beyond a single budget line. We must also account for resources such as this that help relieve pressure on university finances and strengthen their capacity to serve our students,” he said.

The DBM explained that the P9.753-billion release will help settle FHE costs that SUCs had previously absorbed using their available institutional resources, easing financial pressure on the schools and giving them greater fiscal space to support “other lawful institutional priorities.”