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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3841 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE AND HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE 
EXPLANATORY NOTE 
This bill aims to expand the coverage of the Special Education Fund (SEF) under Republic 
Act No. 7160 otherwise known as the Local Government Code of 1991 by increasing the rate 
from 1% to 2% to be implemented in the whole country. 
The delivery of quality education remains a cornerstone of national development. It is one of 
our rights embedded in the 1987 Constitution – The State shall give priority to education to 
foster patriotism and nationalism, accelerate social progress, and promote total human 
liberation and development. However, the Philippine educational system continues to face 
serious challenges—foremost among them is the perennial classroom shortage, lack of 
instructional materials, and inadequate funding for school facilities and teacher support.  
The State aimed to address these through the Special Education Fund which was 
institutionalize in 1968 through Republic Act No. 5447 entitled “An Act Creating A Special 
Education Fund To Be Constituted From the Proceeds of An Additional Real Property Tax and 
A Certain Portion of Taxes on Virginia-Type Cigarettes and Duties on Imported Leaf Tobacco, 
Defining the Activities to be Financed, Creating School Boards For The Purpose, And 
Appropriating Funds Therefrom”, and was incorporated in Republic Act No. 7160 (R.A. No. 
7160) otherwise known as the Local Government Code of 1991 to assist and support 
educational initiatives in the local level. Under Section 235 of Republic Act No. 7160, the 
Special Education Fund (SEF) is sourced from an additional one percent (1%) levy on real 
property tax collected by provinces, cities, and municipalities. This created a significant 
change for the education as it involved the local government as partners in the delivery of 
basic education services, however, while this provision has helped local government units 
(LGUs) support education in their respective jurisdictions, the current 1% rate is no longer 
sufficient to meet the growing demands of a rapidly expanding student population and 
inflationary pressures on construction and procurement costs. 
The increase will allow LGUs to double their support for public education, contribute 
significantly to the national effort to address classroom shortages, and invest in 21st-century 
learning facilities for our children. Education is a shared responsibility. Through this measure, 
we empower local governments to play a stronger, more impactful role in uplifting the future 
of Filipino learners. 
In light of the foregoing, the passage of this bill is humbly sought. 
August 20, 2025
8:00 am


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HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 3841 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE AND HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE 
AN ACT EXPANDING THE COVERAGE OF THE SPECIAL EDUCATION FUND (SEF) BY 
INCREASING THE RATE FROM ONE PERCENT (1%) TO TWO PERCENT (2%) OF REAL 
PROPERTY TAX, AMENDING FOR THE PURPOSE SECTION 235, REPUBLIC ACT NO. 
7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 235 of Republic Act No. 7160 is hereby amended to read as follows: 
"Section 235. Additional Levy on Real Property for the Special Education 
Fund. – A province or city, or a municipality within the Metropolitan Manila 
Area IN THE ENTIRE COUNTRY, may levy and collect an annual taxy of one 
percent (1%) TWO PERCENT (2%) of the assessed value of real property 
which shall be in addition to the basic real property tax. The proceeds thereof 
shall exclusively accrue to the Special Education Fund (SEF). 
SEC. 2. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
Approved,