Philippine Defense Secretary Gilberto Teodoro Jr during the presentation of the proposed budget of the Department of National Defense and its bureaus for Fiscal Year 2027, at the House of Representatives last August 25. Official handout.
Manuel Mogato | September 1, 2026
MANILA — Defense Secretary Gilberto Teodoro Jr said the Philippines will likely receive about $100 million from the United States in 2027, part of the $500 million promised under a supplemental budget approved by the US Congress.
Teodoro said the funds will be given under the foreign military sales (FMS) program of the US State Department to help upgrade the Philippine military’s capabilities to deter China’s hegemonic ambitions in the Indo-Pacific area.
Appearing before the House Appropriations Committee early this week, Teodoro said the US military assistance will help meet the military’s minimum requirements to integrate its command-and-control infrastructure and enhance its maritime domain awareness capability.
Teodoro said the defense and military establishments have requested a 350 billion pesos budget for 2027. (Also read: Philippines,United States scale up trainings and exercises in 2027)
However, the Department of Budget and Management (DBM) submitted to Congress a total of 324.6 billion pesos in defense spending, or a little over 1 percent of GDP. (Also read: Hegseth urges Asian allies to raise defense spending to 3.5 percent of GDP)
The budget did not include 50 billion pesos earmarked for the 2027 military modernization program, which was included in a special trust fund.
More than 143 billion pesos in pension for retirees were also not included, although Teodoro clarified that only less than 50 billion pesos will go to the military.
The rest will go to the coast guard under the transportation department and to the national police, fire and jail personnel under the interior department.
Teodoro said the defense needed more funds to finance construction of new bases in the eastern corridor and a 40 billion dry dock facility near Cagayan de Oro.
He also told Congress a plan to relocate the naval operating base in Sangley Point, Cavite to a larger space in Subic, as well as the 15th Strike Wing, also in Cavite, to an EDCA site at Lumbia Airport in Cagayan de Oro. (Also read: Pentagon official praises ‘progress’ in EDCA sites in the Philippines)
The US also planned to construct warehouses in Lumbia Airport, prepositioning supplies and equipment for humanitarian assistance and disaster relief (HADR) operations.
Cagayan de Oro will also be the future base of operations of the Office of Civil Defense (OCD) in northern Mindanao, he said, adding the location was chosen because of supply chain considerations and connectivity. (Also read: US plans to set up fuel storage facilities in Mindanao)
Lawmakers promised to pass the defense budget and add some more to give Teodoro some legroom to enhance military capabilities under the modernization program, which will be about to end in 2028.
Most projects under the first and second horizons of the revised modernization program were completed, and the third horizon remained untouched.
But the plan was also revised several times to keep up with technological developments. Some of the equipment has become obsolete.
Teodoro told Congress at least 10 projects had been signed but declined to give specific details other than that the new platforms are needed for maritime security and domain awareness.
He said it is important to have defense suppliers from like-minded countries and without supply chain issues, like Israel, where an ongoing conflict may delay deliveries of equipment and platforms.
He said there are no new orders from Israel, except to replenish short-range missiles that were used in the training.
