Eastern Visayas Media Without Borders
by Miriam G.Desacada
Tacloban City–The 2026 General Appropriations Act lets the Finance Secretary secure extra funding, including loans, to support AFP modernization. “Congress added a special provision allowing loan contracts for military upgrades,” says Minority Leader Nonoy Libanan said on Sunday.
“Congress introduced a new special provision in the 2026 budget law that allows the Secretary of Finance to enter into loan contracts or similar financing arrangements to help fund the military’s modernization projects,” Libanan added.
Citing the exact language of the special provision:
“In addition to the annual appropriations for the AFP Modernization Act Trust Fund, the Secretary of Finance, in consultation with the Department of National Defense, is authorized to negotiate, contract, and enter into foreign and domestic financing arrangements, including but not limited to loans, grants, credit facilities, and blended financing mechanisms, for the implementation of AFP modernization projects, subject to the approval of the President of the Republic of the Philippines with the prior concurrence of the Monetary Board, and such limitations as may be provided by law.“
With the AFP modernization program covers advanced military gear, weapons, and tech like intelligence and surveillance systems. The 2026 budget allocates ₱40 billion for AFP modernization, up from ₱35 billion in 2025 . An extra ₱50 billion is authorized via unprogrammed appropriations.
Congress allocated ₱40 billion for AFP modernization in 2026, up from ₱35 billion in 2025 . An extra ₱50 billion is authorized via unprogrammed funds, pending revenue or loan approvals.
The current AFP modernization program ends in 2027, so Libanan urges Congress to pass the next phase ASAP to ensure continuity . Recent gains include 2 guided-missile frigates, 5 Black Hawk helicopters, and 12 FA-50PH fighter jets incoming .
—-Miriam G Desacada
