THE United States will increase its security cooperation funding to accelerate the modernization of the Armed Forces of the Philippines (AFP) as Manila faces a multibillion-peso shortfall in its proposed military modernization budget.
US Secretary of War Pete Hegseth made the announcement during a meeting with Defense Secretary Gilberto Teodoro Jr. in Cebu on Wednesday on the sidelines of the 20th Asean Defense Ministers' Meeting and the 13th Asean Defense Ministers' Meeting-Plus.
The US Department of War did not disclose the amount of additional funding or when it would be released.
The additional funds aim to accelerate AFP modernization and improve interoperability between Philippine and American forces along the First Island Chain, a strategically important arc of islands stretching from Japan through Taiwan to the Philippines.
Hegseth and Teodoro agreed to launch an Alliance Command and Control Modernization Sprint to improve real-time coordination between the two countries' armed forces and strengthen the resilience of their alliance.
They welcomed progress in operationalizing facilities under the Enhanced Defense Cooperation Agreement (EDCA), including investments in critical infrastructure and storage facilities across the Philippines.
The announcement comes as the Department of National Defense (DND) seeks substantially more funding to upgrade the military's capabilities for territorial defense and maritime security.
The proposed 2027 national budget allocates P50 billion for the Revised AFP Modernization Program, up from P40 billion in regular funds for 2026.
The allocation, however, falls P76.97 billion short of the P126.97 billion the DND said it needed for modernization requirements, according to figures presented to the House of Representatives in August.
The newly announced increase is separate from Foreign Military Financing (FMF) grants authorized by the US Congress for the Philippines.
The 2026 US National Defense Authorization Act allows up to $500 million annually in FMF grants for the Philippines from 2026 through 2030, as well as up to $1 billion in direct loans.
For 2026, Congress appropriated at least $100 million in FMF grants for the Philippines, according to the Congressional Research Service. The authorization ceiling does not guarantee that the Philippines will receive the maximum amount each year.
The AFP modernization program operates under Republic Act 10349, which amended the original AFP Modernization Act in 2012 and provided for a 15-year implementation period.
