In a firm directive to the executive and legislative branches, budget watchdog Social Watch Philippines (SWP) asserted that President Ferdinand “Bongbong” Marcos Jr. and Congress must fully implement a recent Supreme Court (SC) ruling that struck down the provision allowing a massive transfer of PhilHealth funds to the National Treasury.
The Supreme Court voided “Special Provision 1(d)” of the 2025 General Appropriations Act, calling it a grave abuse of discretion. This provision, along with a related Department of Finance circular, had enabled the transfer of PhilHealth’s ₱89.9-billion fund balance. The Court ruled that realigning health insurance funds outside their intended purpose is unlawful.
SWP co-convenor Ma. Victoria Raquiza emphasized the immediate implications for the upcoming 2026 national budget. “The bicam must refrain from reintroducing Special Provision 1(d) or any similar language,” she stated, adding that President Marcos should veto any such provision if it reaches his desk, as the Court has provided clear legal guidance.
Furthermore, the Supreme Court ordered Congress to include a separate, dedicated ₱60-billion line item in the 2026 budget to restore the seized PhilHealth funds. This amount is to be allocated as a premium subsidy for indirect contributors, on top of the agency’s regular subsidy.
SWP, however, demanded true accountability for the lost funds. Co-convenor Jessica Reyes-Cantos argued that the proposed ₱60 billion in the 2026 budget bill cannot be considered restitution. “This uses, yet again, taxpayers’ money to pay for the fund that was stolen,” she said, insisting the amount should be recovered from those who enabled the illegal transfer.
The group commended the Supreme Court for its timely decision, which they said upholds every Filipino’s right to health. Reyes-Cantos noted the ruling provides crucial policy guidance ahead of the bicameral deliberations for the 2026 budget.
SWP also called on the SC and the public to pursue accountability from the officials behind the transfer, stressing that the move deprived Filipinos of essential health services.
This report honors the memory of the late Aktibong Kilusan Tungo sa Iisang Bayan (AKTIB) Philippines National Chairperson Ernesto “Ka Erning” Ofracio, a petitioner in the case who passed away before the Supreme Court issued its ruling.#
