MANILA, Philippines — Nearly half of the country’s state universities and colleges could enter 2027 with less government funding, raising fresh concerns over classrooms, laboratories, faculty support and the ability of public universities to accommodate thousands of Filipino students.
Under the proposed 2027 National Expenditure Program (NEP), 49 of the Philippines’ 113 state universities and colleges (SUCs), or 43.46 percent, are facing lower individual allocations compared with 2026, according to figures compiled from the government spending proposal.
The numbers have triggered alarm among student groups because the reductions come as many public universities continue to struggle with overcrowded classrooms, aging infrastructure, equipment shortages and growing demand for affordable higher education.
The National Union of Students of the Philippines (NUSP) said the combined proposed institutional budget for SUCs would fall from about ₱137.9 billion in 2026 to ₱134.6 billion in 2027, a decline of more than ₱3.3 billion.
The biggest concern, however, may not be the nationwide total alone. Some individual universities are facing reductions of more than 20 percent.
Some universities face cuts of more than 25%
Among the institutions facing the steepest proposed reductions is Mariano Marcos State University, whose allocation would fall by about 28.88 percent, from approximately ₱1.75 billion to ₱1.25 billion.
Camiguin Polytechnic State College faces a roughly 28.31-percent reduction, with its budget dropping from about ₱286.99 million to ₱205.75 million.
Other notable proposed reductions include:
- Leyte Normal University: down 25.91 percent, from ₱618.94 million to ₱458.55 million
- Biliran Province State University: down 25.34 percent, from ₱832.33 million to ₱621.39 million
- Philippine Normal University: down 25.26 percent, from ₱1.56 billion to ₱1.17 billion
- J.H. Cerilles State College: down 23.24 percent, from ₱604.17 million to ₱463.76 million.
The University of the Philippines System, the country’s national university, is also facing an estimated ₱2.95-billion reduction based on the figures cited by student groups.
That reduction has drawn particular attention because UP operates not only campuses across the country but also the Philippine General Hospital, one of the nation’s most important government referral hospitals.
Additional reporting has put the proposed reduction involving Philippine General Hospital at roughly ₱805 million, adding a health-care dimension to what might otherwise appear to be solely an education-budget debate.
Eastern Visayas emerges as a major flashpoint
The impact is also uneven across the country.
Eastern Visayas has the largest number of affected SUCs, with nine institutions facing reduced allocations. Eastern Visayas State University is the only one among the region’s 10 SUCs expected to receive an increase under the current proposal.
Those facing decreases include Eastern Samar State University, Leyte Normal University, Biliran Province State University, Northwest Samar State University, Palompon Institute of Technology, Samar State University, Southern Leyte State University, the University of Eastern Philippines and Visayas State University.
Northern Luzon is seeing similar pressure.
Separate regional reporting found that 11 of 16 SUCs across the Ilocos Region, Cordillera Administrative Region and Cagayan Valley face significant reductions in capital outlay, the funding category commonly used for buildings, equipment and other major investments.
Eight institutions in those regions were also reported to face reductions in maintenance and operating expenses.
Those details matter because a university’s headline budget can sometimes appear stable—or even increase—when higher personnel expenses mask reductions in money available for facilities, equipment and daily operations.
Not every state university is losing money
The proposed budget is not a uniform nationwide cut.
Several institutions are set to receive substantial increases.
The Southern Philippines Agri-Business and Marine and Aquatic School of Technology is proposed to receive around ₱327.06 million, up 22.66 percent.
The Zamboanga State College of Marine Sciences and Technology is proposed to receive ₱419.94 million, an increase of 22.62 percent.
Caraga State University and North Eastern Mindanao State University would each receive increases of roughly 22.11 percent, while Siquijor State University would see an increase of about 20.56 percent.
Caraga is the only region in which no SUC is facing an overall budget reduction under the figures analyzed by the Inquirer.
Government says education remains a major priority
The controversy comes against the backdrop of a much larger ₱7.2-trillion proposed national budget for 2027, which the Department of Budget and Management submitted to Congress on August 11, 2026.
DBM says the proposal was developed after government agencies submitted requests totaling more than ₱11 trillion, forcing budget officials to prioritize programs within available fiscal space.
The department says the resulting spending plan focuses on education, health care, infrastructure, food security, social protection and other programs expected to deliver significant public benefit.
The administration has allocated about ₱176.5 billion to higher education, covering SUCs and CHED-related programs, including free tuition and scholarships.
That broader ₱176.5-billion figure should not be confused with the roughly ₱134.6-billion combined SUC institutional allocation cited by NUSP. They cover different portions of government higher-education spending.
Free higher education is already facing funding pressure
The debate is especially sensitive because the government has already had to address funding gaps in its free higher-education program.
Earlier this month, DBM allocated ₱9.753 billion to the Commission on Higher Education to cover funding shortfalls involving 108 state universities and colleges.
According to the government, the money will help settle outstanding obligations accumulated during academic years 2022-2023, 2023-2024 and 2024-2025 under the Free Higher Education Program.
That development underscores the larger challenge facing the sector: even as free tuition expands access to public universities, institutions still need sufficient funding for instructors, classrooms, laboratories, student services and infrastructure.
Students say the numbers could eventually reach classrooms
NUSP argues that inadequate funding threatens the quality and accessibility of public higher education, particularly for students whose families cannot afford private universities.
The group has called on Congress to provide what it describes as adequate and substantial funding for SUCs as lawmakers begin scrutinizing the proposed national budget.
The government, meanwhile, has emphasized that the 2027 spending plan remains only a proposal.
That distinction is crucial.
The National Expenditure Program is the executive branch’s recommended budget—not yet the final spending law. The House of Representatives and Senate can increase, decrease or realign allocations during congressional deliberations before a final General Appropriations Bill is sent to the President.
That means the fate of the 49 universities facing reductions is not yet sealed.
And that may become the biggest political battle surrounding the higher-education budget in the months ahead: whether Congress restores billions of pesos sought by public universities—or allows nearly half of the country’s SUCs to begin 2027 with less money than they had before.
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