Around 7 million beneficiaries may lose cash aid amid DSWD 2026 budget cut
AROUND 7 million Filipino families risk losing financial aid due to the proposed 2026 budget cut for the Assistance to Individuals in Crisis Situations (AICS) program and the zero allocation for the Ayuda sa Kapos ang Kita Program (AKAP), the Department of Social Welfare and Development (DSWD) said on Wednesday.
“We hope our chamber reconsiders the department’s dilemma, which could affect more than seven million Filipino families who may not receive assistance,” DSWD Secretary Rexlon “Rex” T. Gatchalian told the House Committee on Appropriations in Filipino during its budget hearing.
Mr. Gatchalian said that for AICS alone, around 2.98 million beneficiaries could go underserved in 2026 as the program’s funding was cut nearly in half to P27 billion from P44.4 billion in the National Expenditure Program, while the zero allocation to AKAP in 2026 from P26 billion in 2025 could affect 4 million beneficiaries losing assistance.
AICS provides financial assistance to individuals in crisis, including medical, burial, transportation, and educational assistance, whereas AKAP, first introduced in 2023, provides financial aid to low-income or near-poor families.
To offset the potential loss of beneficiaries, Mr. Gatchalian requested an additional P42 billion to P50 billion for AICS to cover the combined shortfall from AICS and AKAP.
His proposal was supported by Cagayan de Oro Rep. Rufus B. Rodriguez, vice-chairperson of the House Committee on Appropriations, noting that it is feasible given that the P275-billion budget originally intended for flood control can now be used for other sectors like social welfare.
“We hope this can be restored to its original level. If AKAP is no longer considered because there is no line item for it as earlier discussed, consolidating it with AICS will not be a problem,” Mr. Gatchalian said, addressing Mr. Rodriquez.
According to the Department of Budget and Management (DBM) last month, AKAP’s budget was reduced to zero due to its remaining funds from 2025 and the government’s limited fiscal space.
The program had earlier faced criticisms from several senators and experts, who argued that it resembled AICS and received a last-minute P26-billion insertion in the 2025 final budget.
DSWD proposed a total of P223 billion for 2026 during the budget hearing, with the Pantawid Pamilyang Pilipino Program (4Ps) receiving nearly half of the allocation at P113 billion. — Edg Adrian A. Eva
