SENATOR Joel Villanueva warned that a proposed ₱9.757-billion reduction in the government’s free tuition subsidy risks undermining the implementation of a major higher education reform law he authored, following a steep drop in the Commission on Higher Education’s (CHED) overall budget for 2027.
Under the proposed 2027 national budget, CHED’s allocation drops to ₱35.453 billion—a 26.7% decline of ₱12.916 billion compared to its 2026 budget.
A significant portion of this decrease comes from the Universal Access to Quality Tertiary Education fund, which drops from ₱37.547 billion to ₱27.790 billion.
The budget cut coincides with the rollout of Republic Act No. 12325, a legislative reform enhancing the free tertiary education system.
Villanueva pointed out that during the first semester of Academic Year 2025–2026, only 12.6% of Tertiary Education Subsidy grantees were from Pantawid Pamilyang Pilipino Program (4Ps) households.
Republic Act 12325 was explicitly crafted to correct this disparity by ensuring financial aid prioritizes the country’s most disadvantaged students.
“We must also prepare for the implementation of Republic Act No. 12325… which we authored and co-sponsored,” Villanueva stated during the CHED and State Universities and Colleges budget briefing.
“We authored this reform because the subsidy was not reaching the students who needed it most. A smaller budget makes that job harder, not easier,” added the former TESDA chief.
Despite concerns over the free tuition program, Villanueva welcomed budget increases in targeted scholarship programs.
The Student Financial Assistance Program’s budget is set to rise from ₱2.154 billion to ₱3.185 billion in 2027, expanding its reach from 42,128 to 49,243 beneficiaries.
Additionally, the Doktor Para sa Bayan Medical Scholarship and Return Service Program secured ₱1.232 billion, which will support 4,557 continuing medical scholars and fund 700 incoming medical students next year.
Villanueva expressed relief over these targeted gains, affirming his commitment to advocate for expanded student financial assistance.