SENATE leaders on Tuesday warned that the government may be forced to operate under a reenacted budget in 2026 if a standoff over the Department of Public Works and Highways’ (DPWH) funding is not resolved, as bicameral negotiations on the national budget remain deadlocked. At the center of the dispute is the Senate’s P54-billion cut to the DPWH’s proposed 2026 budget, based on updated Construction Materials Price Data (CMPD). The goal was to eliminate overpricing and kickbacks that were reportedly built into original project estimates. Senate President Vicente Sotto III said the chamber would not reconsider the reduction unless the DPWH admits that the CMPD figures it submitted, and which the Senate relied upon, were erroneous. Public Works Secretary Vince Dizon earlier faulted the Senate for errors in its computation of the budget cuts, but Sotto rejected the claim, saying that the figures used by senators came directly from the DPWH and were intended to address what lawmakers described as across-the-board overpricing that could lead to kickbacks. Sotto said he had been informed through a Senate group chat that Dizon is drafting a letter acknowledging the error. Without such an admission, Sotto warned, bicameral talks could collapse. “If he doesn’t give that, then there’s nothing. There will be a deadlock,” Sotto said. Meanwhile, in a statement obtained by The Manila Times, the Department of Public Works and Highways (DPWH) acknowledged and apologized for providing insufficient initial data to the Senate Committee on Finance regarding the application of the updated CMPD. Dizon, in a letter to Sen. Sherwin Gatchalian, chairman of the Committee on Finance, also acknowledged and apologized for the insufficient initial data submitted to the panel regarding the application of the updated CMPD. “To address this gap, the department is respectfully submitting additional, project-category-based data, reflecting the effects of CMPD adjustments after considering key variables, such as localized market behaviors, unique site conditions, and critical hauling distances,” Dizon’s letter, dated Dec. 15, 2025, read. “While this cannot be a substitute for a per-project application of the CMPD reductions, the updated adjustment factors now incorporate additional costs typically incurred during actual project implementation, particularly the cost implications of hauling materials from their sources to potential project sites,” it added. Dizon pointed out that by explicitly accounting for logistics considerations, the resulting adjustment factors are more aligned with actual project conditions. Sotto, however, said that even if the DPWH admits to the error, the Senate would not automatically restore the P54 billion. Any adjustment would depend on revised computations and the recommendations of Senate members of the bicameral conference committee. Lacson warning Senate President Pro Tempore Panfilo Lacson echoed concerns over a possible reenacted budget, saying failure by both chambers to reach a principled compromise could derail new programs and infrastructure projects. He urged lawmakers to find common ground while resisting political pressure, citing information that some House leaders are facing “threats” if they fail to accommodate individual budget amendments sought by certain members. “If you find it hard to strike a balance, do what is right,” Lacson said. “Do what is right even when you are threatened.” Despite the impasse, Gatchalian, head of the Senate panel in the bicameral talks, said lawmakers still aim to pass the budget before the end of the year, even as delays mount. “We are definitely no longer on schedule,” he said, noting that this budget cycle has been unusually complex. He cited extended technical working group meetings, lengthy floor debates, and bicameral discussions that have already gone beyond their expected timelines. “We expected the bicam to last three days. Now we’re on the fourth day, and it could take more,” he said. Gatchalian said both chambers are prepared to work through weekends and days close to Christmas if necessary to meet constitutional deadlines. “Our goal is simple: whatever it takes, we approve the budget,” he said. He added that even after political agreements are reached, technical processes such as reconciling versions and printing the final budget documents could take four to five days, further tightening the timeline. Gatchalian backed Sotto’s position that the Senate relied on data provided by the DPWH in determining budget reductions. “The data they gave us is what we used,” he said. “They cannot say the Senate is wrong or that we just made it up.” He acknowledged the DPWH’s concern that some the budget cuts on some projects may have been too high or miscalculated, an issue he said could still be addressed through careful recomputation and further coordination. “That’s part of any bicam negotiation,” Gatchalian said. “They explain to us, we explain to them.” Palace backing Malacañang on Tuesday warned that many government projects could face delays if the proposed 2026 national budget is not approved on time. Palace Press Officer Claire Castro maintained that President Ferdinand Marcos Jr. does not want a reenacted budget, emphasizing that all efforts must be made to avoid delays. “Everyone knows, even Congress, that the president does not want a reenacted budget. At this point, we all know that every possible effort must be made to avoid a reenacted budget,” Castro said in Filipino during a Palace press briefing. Citing the Department of Finance’s concern, Castro said many projects would be delayed if Congress fails to pass the spending plan for next year. The Senate on Monday postponed the bicameral conference on the 2026 budget due to issues involving the DPWH. Meanwhile, the House of Representatives expressed optimism that the delay would not result in a reenacted budget. WITH PNA