The government has issued guidelines for releasing funds to state universities and colleges (SUCs) to settle free higher education (FHE) funding deficiencies covering academic years 2022-2023 to 2024-2025.
In Joint Memorandum Circular No. 2026-01, the Department of Budget and Management, Commission on Higher Education (CHED) and Unified Student Financial Assistance System for Tertiary Education (UniFAST) outlined the guidelines governing the release of funds for FHE deficiencies.
The guidelines state that deficiencies will first be charged against appropriations for the Universal Access to Quality Tertiary Education (UAQTE), with any remaining balance to be covered by the Higher Education Development Fund (HEDF).
Up to P4.486 billion in UAQTE appropriations will be used to settle the deficiencies, while unused HEDF balances may be tapped to cover any remaining amount, as authorized under the 2026 General Appropriations Act.
To facilitate the release of funds, concerned SUCs must submit documentary requirements to the UniFAST Secretariat, including a duly notarized registrar’s certificate of qualified students, consolidated FHE billing statement and details, and a duly notarized certification of FHE deficiencies.
They must also provide soft copies of billing details, certificates of registration, and acceptable admission documents.
Only SUCs that submit complete documentary requirements will be included in the Special Budget Request, according to the circular.
The release of funds to SUCs shall be in accordance with existing budgeting, accounting and auditing regulations, and within the validity of the funding for the purpose.
The guidelines aim to standardize the billing process, expedite the release of funds, and strengthen accountability in settling FHE deficiencies for the covered academic years.
