U.S. Ups Support For Luzon Economic Corridor With $3.8-M Grant

The United States has reaffirmed its commitment to Philippine infrastructure development by expanding funding for the Luzon Economic Corridor (LEC), even as the Trump administration rolls back certain international aid programs elsewhere.

The Subic-Clark railway aims to streamline logistics, lower transport costs, and enhance regional competitiveness while generating thousands of jobs. I Photo: Subic-Clark-Manila-Batangas (SCMB) Cargo Railway

According to a report from the Philippine News Agency, the U.S. Trade and Development Agency (USTDA) has increased its grant funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Cargo Railway from USD2.5 million (PHP138.8 million) to USD3.8 million.

Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go said the increased grant was relayed to the Philippine government after a competitive selection of a U.S. consultancy firm.

He confirmed that the OSAPIEA, Department of Transportation, and the U.S. Embassy in Manila will finalize and sign the Beneficiary Agreement for the project in the coming days.

“This is great, positive news,” Go said. “This milestone demonstrates that Philippines–U.S. economic ties are stronger than ever.”

He added that the increased funding reflects growing investor confidence and is expected to create more jobs along the corridor.

Despite recent cuts in U.S. foreign aid elsewhere, the grant expansion signals continued American support for Philippine development goals, especially in infrastructure and regional connectivity.

Talks are also underway with Swedfund, Sweden’s development financier, which is considering a separate USD1.2-million grant to support the railway project.

The SCMB freight railway is the flagship project of the Luzon Economic Corridor, designed to connect the major industrial hubs of Subic Bay, Clark, Manila, and Batangas.

The railway aims to streamline logistics, lower transport costs, and enhance regional competitiveness while generating thousands of jobs. The LEC was born out of a trilateral meeting between the Philippines, the U.S., and Japan in April 2024.

The U.K., Sweden, and Australia have also expressed interest in joining the initiative. France’s Minister Delegate for Foreign Trade Laurent Saint-Martin, during a visit to Manila last month, conveyed to President Marcos France’s desire to participate in the project as well.