The $4.65 Billion Shift: 7 Critical Updates On The Department Of National Defense Philippines (DND) Modernization

Contents

The Department of National Defense (DND) Philippines is currently undergoing one of its most critical and expansive periods of transformation, driven by escalating geopolitical tensions and a massive budget increase aimed at achieving a credible defense posture. As of December 22, 2025, the DND is spearheading the ambitious Revised AFP Modernization Program (RAFPMP), a necessary pivot towards "Archipelagic Defense" that is redefining the nation's security strategy.

This period of strategic urgency is primarily fueled by the volatile situation in the West Philippine Sea (WPS) and the need to secure the nation's maritime domain. The DND's actions, under the leadership of Secretary Gilberto Teodoro Jr., are not merely about acquiring new hardware; they reflect a fundamental shift in the Philippines' approach to national sovereignty, regional stability, and international defense cooperation.

Secretary of National Defense Gilberto Teodoro Jr.: A Profile

The strategic direction of the DND is currently guided by Secretary Gilberto Eduardo Gerardo Cojuangco Teodoro Jr., a veteran politician and business executive who assumed the post on June 5, 2023. This marks his second tenure as Defense Secretary, having previously held the position from 2007 to 2009. His leadership is characterized by a strong focus on modernization, external defense, and fostering robust international alliances.

  • Full Name: Gilberto Eduardo Gerardo Cojuangco Teodoro Jr. (Nicknamed "Gibo")
  • Born: June 14, 1964, in Manila, Metro Manila, Philippines.
  • Education:
    • Bachelor's Degree in Commerce, De La Salle University.
    • Bachelor of Laws, University of the Philippines (UP).
    • Master of Laws, Harvard Law School (USA).
  • Previous Roles:
    • Representative of Tarlac's 1st Congressional District.
    • Chairman of the Nationalist People's Coalition (NPC).
    • Former Secretary of National Defense (2007–2009).
  • Current Mandate: To accelerate the AFP Modernization Program and strengthen the Philippines' capacity for external defense, particularly in the West Philippine Sea.

7 Critical Updates Redefining Philippine Defense in 2025–2026

The following are the most crucial and recent developments that highlight the DND's aggressive push to transform the country's defense capabilities, moving away from a primary focus on internal security to a credible external defense posture.

1. The Historic P256.1 Billion Budget for 2025

The DND has secured a significant financial boost, with its proposed budget for 2025 reaching approximately P256.1 billion (equivalent to about $4.65 billion). This figure represents a substantial 12.3% increase compared to the previous year’s budget.

This massive allocation is a clear signal from the administration of President Ferdinand Marcos, Jr., that national security is the top priority. The bulk of this funding is directed toward enhancing the capabilities of the Armed Forces of the Philippines (AFP), ensuring they are equipped to protect the nation's territorial integrity and sovereignty.

2. The Launch of the Revised AFP Modernization Program (Re-Horizon 3)

The centerpiece of the DND's current strategy is the Revised AFP Modernization Program (RAFPMP), specifically the third phase known as Re-Horizon 3. This phase, which officially began implementation in 2023, is focused on developing a more credible deterrent capability.

A separate, dedicated P50 billion in funding has been earmarked solely for the RAFPMP to fast-track its projects. The goal is a shift towards "Archipelagic Defense," emphasizing the acquisition of advanced assets for the Philippine Air Force and Philippine Navy, such as multi-role fighters, frigates, and coastal defense systems.

3. Escalating Tensions and the West Philippine Sea Stance

The DND has adopted a firm, highly public stance against aggressive actions in the West Philippine Sea (WPS), particularly in response to incidents involving the China Coast Guard. Secretary Teodoro Jr. has been vocal in condemning what the DND terms "lies" used to justify attacks on Filipino personnel and vessels.

This aggressive communication strategy is part of a broader DND effort to manage the narrative, ensure transparency, and galvanize international support for the Philippines' sovereign rights in the region. The WPS remains the single most critical external security challenge for the department.

4. Expansion of the Enhanced Defense Cooperation Agreement (EDCA) Sites

Cooperation with the United States remains a cornerstone of the DND's external defense strategy. The DND has been actively working with the US Department of Defense to operationalize the new and existing Enhanced Defense Cooperation Agreement (EDCA) sites.

These sites, which include strategic locations in Northern Luzon and Palawan, are crucial for enhancing interoperability, improving disaster response, and providing key logistical hubs for joint military exercises. The US Congress is also considering a $2.5 billion security assistance package through the 2026 National Defense Authorization Act (NDAA), further bolstering DND’s capabilities.

5. Increased Multilateral Defense Engagements

Beyond the traditional US alliance, the DND is prioritizing multilateral defense cooperation. The Philippines is set to lead key ASEAN Defense Engagements, showcasing its commitment to regional stability.

Furthermore, high-level meetings involving the Defense Ministers of Australia, Japan, the Philippines, and the United States are becoming more frequent. These "quad" engagements are vital for coordinating maritime security, information sharing, and ensuring a free and open Indo-Pacific, aligning perfectly with the DND's Archipelagic Defense strategy.

6. Focus on Climate Resilience and Non-Traditional Threats

DND Secretary Teodoro Jr. has consistently emphasized that defense is not limited to military threats. He has highlighted the importance of building a "secure, climate-resilient" Philippines in 2025, integrating climate change and disaster response into the DND's core mandate.

This focus acknowledges the country's vulnerability to natural disasters, positioning the AFP and DND agencies as primary responders, thereby linking national security directly to human security and environmental stability.

7. The Push for a Self-Reliant Defense Industry

A long-term goal for the DND is to achieve a degree of self-reliance, moving away from complete dependence on foreign military sales. This objective aligns with the spirit of the Philippine Defense Industry Development Act (PDIDA).

The current modernization push, especially under Re-Horizon 3, is intended to stimulate the local defense industry. By encouraging domestic production, the DND aims to lower costs, ensure a steady supply of spare parts, and create a sustainable foundation for the country's defense technology sector, making the AFP a stronger and more self-reliant force.

The Way Forward: DND's Strategic Imperatives

The Department of National Defense Philippines is navigating a complex and challenging geopolitical environment. The massive budget increase and the renewed focus on the RAFPMP's Horizon 3 phase underscore a commitment to developing a credible military deterrent.

The DND's strategic imperatives are clear: bolster external defense capabilities, leverage key alliances like the Enhanced Defense Cooperation Agreement (EDCA) with the United States, and firmly assert sovereignty in the West Philippine Sea. The leadership of Secretary Gilberto Teodoro Jr. is proving instrumental in pushing these critical, high-stakes reforms forward, shaping the future of Philippine national security for decades to come.

The $4.65 Billion Shift: 7 Critical Updates on the Department of National Defense Philippines (DND) Modernization
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