Cebu City has been granted a substantial financial boost of P145 million from the National Government's Local Government Support Fund (LGSF). This allocation follows the signing of a memorandum of agreement (MOA) at Malacañang on Monday, February 23, 2026, aimed at constructing public school buildings and funding local subsidies. The funds are part of an expanded LGSF, which will be directly transferred to the City Government, marking a significant step in enhancing support for local government units (LGUs).
Record-Breaking Allocation for Local Support
The LGSF has been expanded to P57.872 billion for 2026, representing its highest allocation to date. This increase of more than P34 billion from the previous year is designed to accelerate infrastructure delivery and improve service provision at the local level. Mayor Nestor Archival, in an interview on Tuesday, February 24, emphasized that the money will be directed toward infrastructure projects, rice subsidies, and educational facilities.
Addressing Classroom Shortages
Half of the allocated funds are earmarked for building multi-storey classrooms to accommodate over 100,000 enrollees. Cebu City has submitted documentary requirements for six- and eight-story schools to alleviate overcrowding caused by severe classroom shortages. Once compliance requirements are finalized and formal approvals are secured, Archival anticipates additional funds from the National Government specifically for school construction.
He stated, "When that is finished, we're expecting them to release a certain amount to fund the construction of our schools." Previous data from the local education division reveals that shifting schedules have become a standard coping mechanism to manage space constraints. In some instances, classes are held in temporary or makeshift areas, while overcrowded rooms designed for fewer learners accommodate far more students than intended.
National Education Challenges
The classroom gap in Cebu City is part of a broader national problem. For School Year 2025–2026, the country faces an estimated shortage of around 165,000 classrooms. Infrastructure deficiencies are further compounded by a lack of teachers, creating additional strain on the public school system. The MOA signing, under the Department of Education's nationwide classroom building program, was led by President Ferdinand Marcos Jr. and attended by local officials.
Streamlining Fund Release Processes
During the launch of the expanded fund, President Marcos emphasized reforms designed to streamline and accelerate the release of assistance to LGUs. He highlighted that the government has moved away from a purely demand-driven system, which previously required local governments to complete all documentation before funds could be accessed. This shift aims to facilitate quicker implementation of critical projects.
Implementation and Future Plans
Mayor Archival clarified that the MOA signing was largely ceremonial, with detailed project implementation, including exact allocations and identified sites, to follow after formal approvals. Proposed locations for new buildings are being studied in both the northern and southern districts of Cebu City. This development is seen as a significant boost for Cebu City, which has long struggled with a shortage of classrooms, promising improved educational infrastructure and enhanced local services.
