Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

‘TWENTIETH CONGRESS
First Regular Session
House Bill No:_1191

Introduced by Representative
BRIAN DANIEL POE LLAMANZARES, PhD, MNSA

AN ACT ALLOCATING GOVERNMENT FUNDS FOR THE JEEPNEY
MODERNIZATION PROCESS TO ELIMINATE DRIVER DEBT, ESTABLISHING A
SUBSIDY AND PUBLIC-PRIVATE MECHANISM TO SUPPORT MODERN
TRANSPORT, PROVIDING DEBT RELIEF, SKILLS RETRAINING, AND ECONOMIC
PROTECTIONS FOR PUBLIC UTILITY JEEPNEY OPERATORS AND DRIVERS,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE.

This bill seeks to establish a comprehensive, pro-poor, and inclusive approach to public
transportation modernization through the enactment of the "Jeepney Drivers’ Debt Forgiveness
and Modernization Act." It aims to support the government's long-standing goal of upgrading the
public utility jeepney (PUJ) system while ensuring that drivers and operators are not left behind
or burdened in the process.

It is known to many that jeepneys have long served as the backbone of public
transportation in the Philippines—providing affordable, accessible, and reliable mobility,


especially to the working class. However, the implementation of the current Public Utility
Vehicle (PUV) Modernization Program has caused financial distress to thousands of PUJ drivers
and operators. Many were forced to take out costly loans or consolidate into cooperatives just to
comply, often resulting in heavy debt, income loss, or even job displacement.

Recognizing this, the bill proposes several critical reforms, Foremost, it seeks to cancel
outstanding debts incurred under the modemization scheme through a government-funded debt
forgiveness program, administered by the Land Bank of the Philippines and the Development
Bank of the Philippines. Affected drivers and operators will be relieved from paying
modernization-related loans, provided they meet the conditions set under the law.

Additionally, the bill mandates the creation of a Modemization Subsidy and Grant
System, where qualified drivers and operators may receive up to 90% of the cost of a modern
jeepney unit as a direct subsidy. This aims to remove the financial barriers that prevent individual
and small-scale operators from complying with modernization standards.

To further broaden accessibility, this proposed measure removes the mandatory
requirement to consolidate into cooperatives. Independent operators who comply with safety and
regulatory standards will still be eligible for assistance, ensuring faimess in access to government
support.

‘A Public-Private Partnership (PPP) mechanism will also be introduced to ensure
long-term support for procurement, maintenance, and supply chains—prioritizing local
manufacturers to stimulate green transport industries and job creation in the country

The bill also includes a strong economic protection component, which provides for skills
retraining, upskilling, and financial literacy programs through the Department of Labor and
Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA).
During the transition, affected drivers shall be provided monthly financial assistance for up to
twelve (12) months.

In order to avoid abrupt job losses, the measure proposes a six-year gradual phase-out of
traditional PUJs. During this period, provisional permits will be issued to operators undergoing
transition to modern units.

A Fair Fare Pricing Framework will be established by the Land Transportation
Franchising and Regulatory Board (LTFRB) to ensure a balance between commuter affordability
and operator viability. A Fare Subsidy Fund will also be created to help low-income commuters
during the modernization period.


Through this bill, we aim to modernize Philippine transport with justice, equity, and
compassion at its core. It envisions a transport future that is efficient and environmentally
sound—but also humane and socially inclusive.

The passage of the bill is earnestly sought.

HON. BRIAN DANIEL POE LLAMANZARES, PhD, MNSA
Representative

FP) Panday Bayanihan Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

TWENTIETH CONGRESS

First Regular Session

House Bill No._1191

Introduced by Representative

BRIAN DANIEL POE LLAMANZARES, PhD, MNSA

AN ACT ALLOCATING GOVERNMENT FUNDS FOR THE JEEPNEY
MODERNIZATION PROCESS TO ELIMINATE DRIVER DEBT, ESTABLISHING A
SUBSIDY AND PUBLIC-PRIVATE MECHANISM TO SUPPORT MODERN
TRANSPORT, PROVIDING DEBT RELIEF, SKILLS RETRAINING, AND ECONOMIC
PROTECTIONS FOR PUBLIC UTILITY JEEPNEY OPERATORS AND DRIVERS,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Represent:
Congress assembled:

ives of the Philippines in

SECTION 1. Short Title. — This Act shall be known as the "Jeepney Drivers’ Debt Forgiveness
and Modernization Act.”

SECTION 2. Declaration of Policy. — it is the policy of the State to modernize public
transportation while upholding social justice, economic protection, and inclusive progress. The
government recognizes the contributions of public utility jeepney (PUJ) drivers and operators and
shall ensure that modernization efforts shall not lead to their displacement, indebtedness, or undue
burden.


SECTION 3. Definition of Terms, — For the purpose of this Act:

a, PUJ ~ refers to Public Utility Jeepneys.
». Debt Forgiveness ~ refers to the cancellation of unpaid loans or financial obligations
related to PUJ modernization,

. Qualified Driver/Operator ~ refers to individuals or entities who have operated PUIs as
of the effectivity of this Act and comply with safety and regulatory requirements.

4d. Modern Jeepney ~ refers to transport units compliant with DOTr and LTFRB
standards, including electric or hybrid PUJs.

€. Public-Private Partnership (PPP) — refers to cooperative arrangements between the
government and private sector to implement this Act.

f. Phase-Out Program ~ refers to the gradual transition from traditional to modern PUJs.

SECTION 4. Establishment of the Jeepney Modernization Debt Forgiveness Program.

a. All outstanding debts incurred by qualified PUJ drivers or operators under the prior
modemization program shall be cancelled upon compliance with the requirements
provided under this Act.

b. Affected financial institutions shall be compensated through a government-funded
settlement scheme, administered by the Land Bank of the Philippines and the Development
Bank of the Philippines.

SECTION 5. Creation of a Modernization Subsidy and Grant System.

a. The Department of Transportation (DOTY), in coordination with the Department of
Budget and Management (DBM), shall allocate annual funding for the direct subsidy of
modern jeepney units.

b. Subsidies and grants shall cover up to 90% of vehicle cost for qualified operators or
drivers,

. Local electric vehicle (EV) manufacturers and fabricators shall be prioritized as suppliers
to stimulate domestic green industries.

SECTION 6. Public-Private Partnerships for Procurement and Maintenance.

a. The DOTr shall establish PPP arrangements for vehicle procurement, maintenance
depots, and supply chain logistics.


b. Priority shall be given to cooperatives, associations, or micro-enterprises engaging in the
‘manufacture and maintenance of modern jeepneys.

SECTION 7. Optional Cooperative Participation.

The requirement for consolidation into transport cooperatives or corporations to access
modemization financing is hereby removed. Independent operators who comply with safety and
regulatory standards shall be equally eligible for subsidies and grants.

SECTION 8. Economic Protection and Skills Retraining.

a. The Department of Labor and Employment (DOLE) and Technical Education and Skills
Development Authority (TESDA) shall establish retraining, upskilling, and financial
literacy programs for displaced or _—_ transitioning ~= PUJ._—_ drivers.
b, Monthly transition assistance shall be provided for a period not exceeding twelve (12)
months during the transition phase.

SECTION 9. Gradual Phase-Out Program.

4. A six-year transition period shall be established to gradually replace traditional jeepneys
without abrupt displacement.
b. Operators may continue to operate traditional PUJs under provisional permits while
undergoing transition.

SECTION 10. Fair Fare Pricing Framework.

a. The Land Transportation Franchising and Regulatory Board (LTFRB) shall issue pricing
guidelines to balance affordability for commuters and sustainability for operators.
b. A special Fare Subsidy Fund shall be created for low-income commuters during the
transition phase.

SECTION 11. Appropriations. — An initial appropriation of P30 billion pesos shall be allocated
from the General Appropriations Act, with succeeding appropriations to be included in the annual
national budget.

SECTION 12. Implementing Rules and Regulations (IRR). — sixty (60) days from the
effectivity of this Act, the DOTr, DBM, DOLE, and other relevant agencies shall promulgate the
necessary rules and regulations.

SECTION 13. Separability Clause. — If any provision of this Act is declared unconstitutional or
invalid, the remaining provisions shall not be affected.


SECTION 14, Repealing Clause - Alll laws, decrees, executive orders, and rules inconsistent
with this Act are hereby repealed or amended accordingly.

SECTION 15. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation,

Approved,