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Marcos Pledges Hard Line on Graft and Offers Tax and Power Relief

The move will test whether prosecutors can pursue allies and whether relief promises can be paid for without undermining public finances.

Philippine President Ferdinand Marcos Jr delivers his fifth State of the Nation Address (SONA), at the House of Representatives, in Quezon City, Metro Manila, Philippines, July 27, 2026. REUTERS/Lisa Marie David
A protester destroys an effigy of U.S. President Donald Trump during a protest march in Quezon City, Philippines Monday, July 27, 2026, ahead of the State of the Nation Address by President Marcos Jr. (AP Photo/Gerard Carreon)
Police personnel line up and secure a road near a protest march in Quezon City, Philippines Monday, July 27, 2026, ahead of the State of the Nation Address by President Marcos Jr. (AP Photo/Gerard Carreon)
Protesters carry an effigy of U.S. President Donald Trump and Philippine President Ferdinand Marcos Jr. during a protest march in Quezon City, Philippines Monday, July 27, 2026, ahead of the State of the Nation Address by President Marcos Jr. (AP Photo/Gerard Carreon)

Overview

  • President Ferdinand Marcos Jr. said on July 27 he will press corruption cases tied to billion‑peso flood‑control projects and that prosecutions could include his cousin, former House Speaker Martin Romualdez.
  • In the same State of the Nation address Marcos proposed immediate cost‑of‑living measures including raising the annual non‑taxable income ceiling to 350,000 pesos and removing the system‑loss charge on electricity bills.
  • Investigations and some indictments are already under way with the Office of the Ombudsman and prosecutors reported close to filing more cases against officials, contractors and lawmakers linked to the flood‑control anomalies.
  • Security was tightened around the speech with more than 23,000 police deployed and small explosive devices found or detonated near government buildings in the days before the address.
  • The graft scandal has already weighed on growth, the peso and markets and analysts warn Marcos’ relief plans lack clear funding details while the vice‑president’s impeachment and low public trust raise short‑term political risks.