The United States has reinforced its commitment to the Philippines’ infrastructure modernization efforts by continuing the support and raising funding for the Luzon Economic Corridor (LEC) despite the Trump administration halting some US government financing programs in different countries.

Office Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go said in a statement on Sunday that the US 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.

Go said the expanded grant was conveyed to the Philippine government on April 28, following a competitive process for the selection of a US consultancy firm.

The OSAPIEA, Department of Transportation, and the US Embassy in Manila are scheduled to meet in the next few days to finalize and sign the Beneficiary Agreement for the SCMB project.

“(This is a) great positive news,” the Palace official said. “This milestone demonstrates that the Philippines-US economic ties are stronger than ever.”

He added that the increased USTDA grant for the SCMB study reflects growing investor confidence and is expected to lead to more employment opportunities along the corridor.

Despite the scaling back of some US foreign aid programs, the recent funding increase underscores Washington’s continued support for the Philippines’ development priorities, particularly in infrastructure and economic connectivity.

Aside from the US funding, discussions are ongoing with Sweden’s development financier Swedfund, which is considering a separate USD1.2-million grant to complement the railway initiative.

The SCMB freight rail is the flagship project of the LEC, which seeks to link key industrial and trade zones in Subic Bay, Clark, Manila and Batangas province.

Once operational, the freight rail system is expected to improve logistics operations, reduce transport costs, and enhance regional competitiveness while creating jobs for thousands of Filipinos.

The LEC is an offshoot of the trilateral meeting of the Philippines, the US and Japan in April 2024.

Go earlier said the United Kingdom, Sweden and Australia signified their intents to join the LEC.

France’s Minister Delegate for Foreign Trade and French Nationals Abroad Laurent Saint-Martin, who visited Manila last month, conveyed to President Ferdinand R. Marcos Jr. the European country’s interest to also join the project. (PNA)