President Ferdinand Marcos Jr. signed a $115 billion budget on January 5, 2026, while vetoing $1.6 billion in unprogrammed appropriations—slashing discretionary funds to their lowest level since 2019. The veto follows scandal over phantom flood control projects: former lawmaker Zaldy Co admitted to inserting $1.69 billion into the 2025 budget, implicating Marcos's cousin, then-House Speaker Martin Romualdez, in an alleged kickback scheme.
Co remains at large abroad while seven of sixteen co-accused in the first criminal case are now in custody. Eight DPWH officials pleaded not guilty in early January 2026 at their Sandiganbayan arraignment for graft charges over a $4.9 million ghost project. Infrastructure corruption is now testing whether the Philippine system can hold elites accountable.
The DPWH and Independent Commission for Infrastructure formally recommended plunder charges against Romualdez in December 2025, which are now under Ombudsman review. Yet watchdog groups claim $11.8 billion in hidden pork remains embedded across the 2026 budget despite Marcos's vetoes, and Romualdez still received $102 million in DPWH allocables for 2026. Without high-level convictions, critics call it theater: the 2013 scandal produced landmark rulings and Napoles's conviction, but the system rebranded PDAF as allocables—the question is whether this time will be different.
28 events
Latest: January 5th, 2026 · 5 months ago
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January 2026
Marcos Signs 2026 Budget, Vetoes P92.5B
LatestBudget
President enacts P6.793T budget, cuts unprogrammed appropriations to 2019 levels.
Marcos Details Veto Rationale in Signing Speech
Budget
President frames 2026 budget as "pivotal moment" for governance reform, says 2025 corruption exposure made reform unavoidable. Vetoed 7 of 10 unprogrammed items including GOCC support and CARS program.
First Sandiganbayan Arraignments Proceed
Legal
Eight DPWH Region IV-B officials plead not guilty to graft charges over P289.5M ghost flood control project. Pre-conference hearings scheduled through February 2026.
Government Operates Under Reenacted Budget
Administrative
Marcos delays signing; Philippines runs on 2025 budget for first days of 2026.
December 2025
2026 Budget Ratified by Congress
Legislative
Both chambers approve P6.793T spending bill, sent to president for signature.
Congress Ratifies P6.793T Budget
Legislative
Both chambers approve budget with P695.78B in alleged pork insertions per Makabayan bloc. Romualdez receives P6B in DPWH allocables despite corruption allegations.
Watchdogs Identify P695.78B in Hidden Pork
Investigation
Bayan and Makabayan bloc expose bicam report inflated LGSF from P16B to P57.87B, identify 'hard pork' allocables and 'soft pork' social programs benefiting lawmakers.
DPWH Seeks Charges Against 87 Individuals
Legal
Department recommends plunder, malversation, graft and bribery charges against Romualdez, Co, and 85 others to Ombudsman.
November 2025
Marcos Orders Arrest of Co, 17 Others
Legal
President announces warrants issued for Zaldy Co and 17 co-accused; warns fugitives to surrender. Seven eventually detained by early 2026, Co remains at large abroad.
DPWH and ICI Recommend Plunder Charges vs Romualdez
Legal
Independent Commission and DPWH formally recommend plunder, graft, and direct bribery charges against former Speaker based on P100B+ in contracts to Co-linked firms 2016-2025.
First Graft Case Filed at Sandiganbayan
Legal
Ombudsman files graft and malversation charges against Co, 10 DPWH Region IV-B officials, 5 Sunwest Inc executives over P289.5M ghost Naujan river project.
Zaldy Co Releases Bombshell Video Confession
Testimony
Former appropriations chair admits P100B insertions, claims Marcos and Romualdez ordered it.
Co Alleges Marcos Got P25B Kickback
Allegation
Zaldy Co claims President personally received P25 billion from budget insertions.
October 2025
Infrastructure Spending Plunges 22%
Economic
DPWH project validation freezes contracts; spending drops to P84.9B from prior year.
Ping Lacson Resigns as Blue Ribbon Chair
Political
Senate colleagues pressure him out after aggressive corruption investigation.
September 2025
Lacson Reveals Senate Insertions
Investigation
Blue Ribbon chairman discloses almost all senators made P100B+ insertions in 2025 budget.
Security Aide Testifies About Cash Deliveries
Testimony
Orly Guteza tells Senate he delivered P1.68B in luggage to Romualdez residence.
House Speaker Martin Romualdez Resigns
Political
Marcos's cousin steps down as Speaker amid mounting corruption allegations.
Marcos Creates Independent Commission for Infrastructure
Administrative
Executive Order No. 94 establishes ICI to investigate 10 years of flood control anomalies. Former DPWH Secretary Rogelio Singson, SGV Managing Partner Rossana Fajardo appointed commissioners; Baguio Mayor Benjamin Magalong named special adviser/investigator.
Contractor Implicates Romualdez in Kickbacks
Testimony
Curlee Discaya testifies at House probe that Speaker received kickbacks from public works contracts.
Marcos Orders P255.5B Cut from DPWH 2026 Budget
Budget
President directs sweeping review, slashing proposed DPWH allocation from P881.3B to P625.8B for 2026 amid corruption findings.
August 2025
Senate Blue Ribbon Launches Investigation
Investigation
Committee begins Philippines Under Water probe into flood control anomalies and budget insertions.
421 Ghost Projects Confirmed
Investigation
Government inspectors find 421 fake flood control works out of 8,000 projects examined.
July 2025
Flood Control Corruption Scandal Breaks
Investigation
Exposé reveals systemic fraud in P545.6B flood control program with up to 25% kickbacks.
December 2024
Marcos Vetoes P194B from 2025 Budget
Budget
President cuts P168B in unprogrammed appropriations after 300% increase by Congress.
June 2022
Ferdinand Marcos Jr. Becomes President
Political
Son of late dictator assumes office, promising economic revival and infrastructure investment.
November 2013
Supreme Court Declares PDAF Unconstitutional
Legal
14-0 ruling abolished congressional pork barrel system after corruption scandal.
3 moments from history that rhyme with this story — and how they unfolded.
1 of 3
2013-2018
2013 Pork Barrel Scandal and PDAF Abolition
Businesswoman Janet Napoles orchestrated a P10 billion fraud using fake NGOs to siphon lawmakers' Priority Development Assistance Fund allocations. Whistleblower Benhur Luy exposed the scheme after being rescued from detention. The Philippine Daily Inquirer's exposé sparked nationwide protests in August 2013.
Then
Supreme Court declared PDAF unconstitutional in November 2013 by 14-0 vote, abolishing congressional pork barrel.
Now
Napoles convicted of plunder in 2018. Three senators faced charges. System renamed but discretionary allocations persisted through 'allocables' and unprogrammed funds.
Why this matters now
Shows that even landmark Supreme Court rulings and prosecutions don't eliminate pork barrel—the system adapts. Unprogrammed appropriations and DPWH allocables are the new PDAF.
2 of 3
2011-2014
2014 Disbursement Acceleration Program Controversy
President Benigno Aquino III's administration created the DAP, moving $3.6 billion in unspent funds between 2011-2013 to accelerate infrastructure projects. Critics compared it to pork barrel. In July 2014, the Supreme Court ruled key DAP mechanisms unconstitutional. Aquino publicly criticized the Court and insisted DAP was different from PDAF.
No officials prosecuted. Aquino served full term. Demonstrated limits of executive budget flexibility but also showed political elite faces minimal personal consequences.
Why this matters now
Established that both legislative and executive branches exploit budget flexibility for discretionary spending, and that Supreme Court intervention doesn't guarantee accountability beyond institutional rulings.
3 of 3
Late 2018 - April 2019
2019 Delayed Budget Enactment
Congress failed to pass the 2019 budget on time due to disputes over allocations and accusations of insertions. The Philippines operated under a reenacted 2018 budget for the first quarter of 2019, freezing new programs and infrastructure projects.
Then
Economic growth slowed to 5.6% in Q1 2019, the lowest in four years, partly attributed to budget delays freezing government spending.
Now
Unprogrammed appropriations for 2019 remained at minimal levels. The delay served as a benchmark for fiscal restraint that Marcos now references.
Why this matters now
The 2019 budget represents the 'lowest' unprogrammed appropriations level that Marcos claims to have returned to with his 2026 vetoes—making it the standard for what minimal discretionary spending looks like.
