SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHIILIPPINES ) 
Third Regular Session 
) 
'15 
OCT -6 P 6 :46 
SENATE 
S. No. __ 
2...,9"",8LJ.J6 
Introduced by Senator Ralph G. Recto 
AN ACT 
PROVIDING FOR A FULL TUITION SUBSIDY FOR STUDENTS ENROLLED IN 
STATE UNIVERSITIES AND COLLEGES (SUCs), AND APPROPRIATING FUNDS 
THEREFOR 
Explanatory Note 
The system of free public basic education has long been in existence in the Philippines. 
Free and compulsory elementary education was established by the Malolos Constitution in 1899, 
whereas free secondary education was formalized with the enactment of Republic Act No. 6655 
in 1988. Tertiary education in State Universities and Colleges (SUes), however, has never been 
free albeit government subsidy. 
The budget allocation to basic education has been getting a substantial share in the 
national expenditures and has continued to increase over the years. It has gone from 12.3% of the 
National budget in 2009 to 14.4% in 2016. Whereas, the subsidy provided to sues by the 
National Government (NG) has remained at lower levels. Since 2005 to date, the sues' share of 
the NG budget has never gone beyond the 2% markl. 
According to FY 2014 data, the estimated annual government cost per student in an sue 
is at an average of P21,000. This drives sues to internally generate their own income through 
the collection of tuition fees and through grants and donations, among others, to sustain the cost 
of their operations. In 2014, income collected by 114 sues nationwide from tuition fees 
amounted to P7.9 Billion while other income collected from students totaled P4.7 Billion2• 
Tuition fees that form part of students' out-of-pocket expenses for their college education range 
from as low as P12 to as high as Pl,OOO per unit and are expected to increase further to adjust for 
inflation. These fees become one of the compelling reasons that discourage some students to 
pursue and finish tertiary education. 
Results from the 2013 Functional Literacy, Education and Mass Media Survey 
(FLEMMS) show that among the primary reasons for not attending school were insufficient 
family income and high cost of education. 
Finishing higher education has a significant impact on income and employment. The 
average daily wage that a college graduate could receive is 140% more than that of a high school 
graduate3. The significant difference in income is a good reason to put sustained investments in 
tertiary education. 
Thus, this bill4 seeks to provide for a full tuition subsidy to students enrolled in sues. 
This translates to an estimated additional subsidy to sues equivalent to the amount collected 
from tuition fees and other fees collected from students. The initial funding requirement shall be 
1 Budget Facts and Figures Vol. 2. Jan-Mar 2014, Legislative Budget Research and Monitoring Office 
2 Data from CHED 
3 Results from the 2011 Labor Force Survey 
4 This bill is a counterpart measure to House Bill No. 5905 filed by Rep. Sherwin Gatchalian. 


sourced from the fifty percent (50%) share of the National Govermnent from the annual gross 
income ofthe Philippine Amusement and Gaming Corporation (P AGCOR). 
The goal of this measure is to reduce the out-of-pocket expenses which hinder some 
students from completing tertiary education. The govermnent can now afford this refonn due to 
its more stable macroeconomic position brought about by prudent fiscal policies, an improved 
tax collection efficiency, and a remarkable economic perfonnance. 
Accordingly, in 2014, govermnent spending fell short of its targets. The underspent funds 
of the SUCs which amounted to P4.2 BillionS in 2014 could already fonn a substantial part of the 
fund needed for the full tuition subsidy. The total amount to make SUCs tuition-free would be 
equivalent to just about 0.4 percent of the 2016 budget, which is a rational and sustainable 
allocation given its positive impact to economic and social development. 
As expressed in the Philippine Development Plan, the country's VISIOn of inclusive 
growth and development entails sustained investment in human capital, particularly through the 
provision of quality basic education, competitive technical vocational skills training, and relevant 
and responsive higher education. Significant results can then be realized by making higher 
education competitive and responsive to national development goals. 
In view of the foregoing, approval of this bill is earnestly sought. 
kjev 
5 Agency Budget Notes, State Universities and Colleges for FY 2016, CPBRD 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
'1~) 
OCT -6 P6 :46 
SENATE 
S.No. 
2986 
Introduced by Senator Ralph G. Recto 
AN ACT 
PROVIDING FOR A FULL TUITION SUBSIDY FOR STUDENTS ENROLLED IN 
STATE UNIVERSITIES AND COLLEGES (SUCs), AND APPROPRIATING FUNDS 
THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Tuition-Free Higher Education 
2 
Actof2015." 
3 
SEC. 2. Declaration of Policy. - It is hereby declared that accessible and quality education is 
4 
an inalienable right ofthe Filipino. Therefore, the State shall renew its constitutionally mandated 
5 
duty to make education its top budgetary priority by providing tuition-free higher education 
6 
courses in state universities and colleges. 
7 
SEC. 3. Eligibility to the Full Tuition Subsidy. - All Filipino citizens who are either currently 
8 
enrolled at the time of effectivity of this Act, or shall enroll at any time thereafter, in courses in 
9 
pursuance of a bachelor's degree, certificate degree, or any comparable undergraduate degree in 
10 
any state university or college shall be exempt from paying tuition fees: PrOVided, That they 
11 
meet the admission requirements of the SUCs where they intend to enroll in. 
12 
SEC. 4. Special Tuition Subsidy Fund. - The Special Tuition Subsidy Fund, hereinafter 
13 
referred to as the Fund, is hereby established. The Fund shall be used solely for the purpose of 
14 
implementing the full tuition subsidy under the provisions of this Act. Tuition fees for units 
15 
enrolled by persons eligible for the tuition benefit under the provisions of this Act, payable to 
16 
state universities and colleges, shall be paid from this Fund. 
17 
SEC. 5. Administration of the Fund. - The Fund shall be administered by the Commission on 
18 
Higher Education and shall have the following powers and functions: 
19 
a) Manage and administer the Fund; 
20 
b) Devise a reporting mechanism to be implemented by the state universities and 
21 
colleges which will detail the exact amount of tuition fee subsidy availed of by 
22 
persons eligible for the full tuition subsidy under this Act; 
23 
c) Formulate and implement an efficient and transparent mechanism to ensure the 
24 
payment of tuition fees, using money from the Fund, to the respective state 
25 
universities and colleges, pursuant to the provisions of this Act; 
Page 1 of 3 


1 
d) Resolve and mediate disputes concerning the ineligibility or disqualification of 
2 
persons from the full tuition subsidy under the provisions ofthis Act or any other 
3 
provision ofIaw; and 
4 
e) Any other powers or functions necessary for the implementation of the provisions 
5 
of this Act. 
6 
SEC. 6. Tuition Report. - The President of each state university or college shall submit to the 
7 
Commission on Higher Education (CHED), within five (5) days after the last day of late 
8 
registration for each semester, a report detailing the names of persons eligible for the full tuition 
9 
subsidy in their institution, as well as the amount of tuition fee due based on the number of units 
10 
enrolled. 
11 
SEC. 7. Payment from the Fund. - The CHED shall ensure the full payment of tuition fees 
12 
due to the state university or college, as reported under the next preceding section of this Act, no 
13 
later than thirty (30) days after the submission of the report to the CHED: Provided, That the 
14 
CHED shall reserve the right to withhold or disallow the payment of any reported fees which are 
15 
perceived to be anomalous or irregular until further investigation has been conducted. 
16 
SEC. 8. Accountability Report. - At the end of each academic semester, the President of each 
17 
state university or college shall submit to the CHED a report reconciling the funds received from 
18 
the Fund. Any unused or improperly disbursed amount shall be returned immediately to the 
19 
Fund. 
20 
SEC. 9. Midterm Report. - Starting the first school year upon the effectivity of this Act, the 
21 
CHED shall conduct a mandatory review and submit a midterm report to Congress as to the 
22 
status of implementation of this Act. 
23 
In this midterm report, the following key metrics of access to and quality of public tertiary 
24 
education: 
25 
a) Enrollment rate; 
26 
b) Student demographics; 
27 
c) Graduation rate; 
28 
d) Gross tuition receipts; 
29 
e) Disqualification and ineligibility; 
30 
f) Teachers' welfare and training profiles; 
31 
g) Adequacy of funding requirements; and 
32 
h) Other educational quality indicators, including but not limited to physical learning 
33 
infrastructure, teacher-to-student ratio, and student housing. 
34 
SEC. 10. Appropriations. - The amount necessary to carry out the implementation of this Act 
35 
shaH be initiaHy charged against the fifty percent (50%) share of the National Government from 
36 
the annual gross income of the Philippine Amusement and Gaming Corporation (PAGCOR). 
37 
Thereafter, such amounts necessary to effectively carry out the provisions of this Act shall be 
38 
included in the annual General Appropriations Act. 
Page 2 of 3 


1 
SEC. 11. Implementing Rules and Regulations. - Within (60) days from the effectivity of this 
2 
Act, the CHED shall promulgate the implementing rules and regulations necessary to ensure the 
3 
efficient and effective implementation of this Act. 
4 
SEC. 12. Separability Clause. - Should any part of this Act be declared unconstitutional, the 
5 
rest of the provisions of this Act shall continue to be in effect and subsisting. 
6 
SEC. 13. Repealing Clause. - The provisions of other laws, decrees, executive orders, rules 
7 
and regulations inconsistent with this Act are hereby repealed, amended, or modified 
8 
accordingly. 
9 
SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the 
10 
Official Gazette andlor in at least two (2) national newspapers in general circulation. 
Approved, 
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