The Philippine Department of Transportation (DOTr) has officially excluded the Public Transport Modernization Program—commonly known as the Jeepney Modernization Program—from its list of priority projects for 2025. This decision, confirmed by the Department of Budget and Management (DBM), marks a significant shift in the government’s transportation agenda.
Budget Cuts Impact Modern Jeepney Subsidy
DBM Secretary Amenah Pangandaman announced that this exclusion has resulted in a substantial reduction of the budget allocated for the equity subsidy, which was designed to help transport groups purchase modern jeepneys. According to the 2025 National Expenditure Program (NEP), the requested P2.9 billion subsidy was slashed to nearly P1 billion due to fiscal constraints.
Possibility of Congressional Funding
Despite the program’s exclusion from the priority list, officials have indicated that additional funding may still be possible. Secretary Pangandaman stated that if the modernization program is deemed essential, the DOTr can request supplementary support from Congress. Undersecretary Andy Ortega confirmed that the agency plans to pursue this option to support affected transport groups
Government Focus Shifts to Infrastructure
For 2025, the DOTr’s budget has increased significantly, but the focus is now on major infrastructure projects such as airports and railway systems. The proposed budget for 2025 stands at P180.9 billion, a sharp rise from P73.9 billion in 2024, reflecting the government’s commitment to large-scale transport infrastructure rather than jeepney modernization
Why Is the Jeepney Modernization Program Important?
The Jeepney Modernization Program aims to replace aging, high-emission jeepneys with safer, more environmentally friendly vehicles. Jeepneys are a cultural icon and a lifeline for millions of Filipinos, especially low-income commuters. However, modernization efforts have faced funding issues, public resistance, and implementation delays
What’s Next for Transport Groups?
With reduced government support, transport groups may face greater challenges in upgrading their fleets. Stakeholders are now looking to Congress for possible intervention and additional funding, while the broader transport sector shifts focus to other infrastructure priorities.
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