Highlights from the
2026 State of the Nation Address
President Ferdinand R. Marcos Jr. delivered his fifth SONA, prioritizing sweeping tax reforms for middle-class earners and small businesses, alongside massive energy projects to secure the nation's future.
Tax Exemption
₱350k
Proposed annual income cap
Energy Capacity
10,000MW
Target from 200 power projects
Small Businesses
Waiver
Of minimum corporate income tax
Education Backlog
166k+
Classrooms targeted for construction
Addressing the Needs of the Working Class
In his fifth State of the Nation Address at the Batasang Pambansa on July 27, 2026, President Marcos Jr. delivered a speech heavily focused on economic relief and long-term infrastructural stability. A standout moment was his call to Congress to enact immediate tax reforms aimed at protecting the purchasing power of ordinary Filipinos.
He urged the legislature to pass a bill exempting workers earning ₱350,000 or less annually from paying income taxes. In tandem with this, he announced a push to waive the minimum corporate income tax for small businesses, aiming to spur localized economic growth and job creation across the country.
Key Action Areas
Power & Energy
- Massive Expansion: Close monitoring of 200 power projects aiming to inject nearly 10,000 megawatts into the grid by 2028.
- Storage Solutions: Addition of over 1,700 megawatts of energy storage systems to secure supply for 30 million households and industries.
Education Reform
- Infrastructure Push: Addressing the severe backlog of over 166,000 classrooms nationwide.
- Safe Schools: Reinforcing mechanisms to respond to bullying and ensuring functioning child protection services are operational.
Tax & Economic Relief
- Individual Exemption: Seeking zero income tax for individuals earning up to ₱350,000 annually.
- Corporate Waiver: Removing the minimum corporate income tax burden for small and micro-enterprises.
Agrarian Support
- Continuous Aid: Reaffirming the Department of Agrarian Reform's mandate to provide irrigation, machinery, and accessible credit to beneficiaries.
Focus on Implementation
As the administration enters its final stretch towards 2028, independent bodies like the Second Congressional Commission on Education (EDCOM 2) have urged the government to focus heavily on the execution of these grand plans.
The challenge highlighted during the 2026 SONA is ensuring that national policies and massive infrastructural investments translate into measurable, day-to-day improvements that Filipino families can actually feel.
"Kasalukuyan nating binabantayan at tinututukan ang dalawang daang proyekto na matatapos hanggang sa dulo ng administrasyong ito... karagdagang seguridad ito sa 2028 para sa halos 30 milyong kabahayan at industriya."
— President Ferdinand R. Marcos Jr.
