SENATOR Sherwin Gatchalian has flagged a P3.1-billion funding shortfall for more than 230,000 incoming Tertiary Education Subsidy (TES) beneficiaries from Pantawid Pamilyang Pilipino Program (4Ps) households under the proposed 2027 national budget.

Gatchalian said 230,417 incoming 4Ps beneficiaries have no allocation under the 2027 National Expenditure Program (NEP), requiring an estimated P3.1 billion to fund their TES grants.

He said tuition-free education alone may not be enough to help students from low-income families complete tertiary education, stressing the need for additional financial assistance to prevent them from dropping out.

Overall, the TES program faces a P12.023-billion funding deficit under the 2027 NEP, covering 709,709 unfunded slots, according to Gatchalian.

For 4Ps students expected to continue receiving the subsidy in 2027, there is a P4.21-billion shortfall for 70,471 slots.

Another P2.39 billion is needed to cover 177,036 unfunded 4Ps beneficiaries carried over from fiscal year 2026.

A further P2.32-billion shortfall affects 231,785 students from areas without a state or local university or college.

The funding concern comes after the enactment of Republic Act No. 12325, which amended the Universal Access to Quality Tertiary Education Act.

The law explicitly prioritizes students from 4Ps households for TES, along with other economically disadvantaged learners.

Under RA 12325, qualified 4Ps students enrolled in Commission on Higher Education-recognized higher education institutions or TESDA-registered technical-vocational institutions are given priority in TES allocation.

The law also provides that TES should be fully funded for qualified poor students, with priority given to 4Ps beneficiaries to help them complete their tertiary education.