TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
^5 JUL -9 ? 4 :03
SENATE 
S. No.
\J
Introduced by: Senator Loren Legarda
AN ACT
ESTABLISHING A NATIONAL STUDENT ALLOWANCE PROGRAM AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The right to education, as enshrined in Article XIV, Section 1 of the 1987 
Constitution, mandates the State to "protect and promote the right of all citizens to 
quality education at all levels and take appropriate steps to make such education 
accessible to all." Yet for many Filipino learners, especially those from low-income 
households, education remains out of reach because of the daily and compounding 
costs that accompany their pursuit of learning. In fact, one survey shows that the top 
reason hindering the youth from pursuing technical and vocational education is the 
lack of funding for allowances.1
Regardless of their sex, age, and course, young people, while studying, need 
funds for their subsistence and other expenses. In developing countries, such as the 
Philippines, students rely heavily on the allowance given to them by their parents. 
Whether it is received daily, weekly or monthly, an allowance could serve as a social 
security for young people.2
Many students, particularly those from economically disadvantaged 
households, receive little to no allowance, making it even more difficult for them to
1 https://edcom2.gov.ph/media/2023/10/pidspn2317.pdf.
2http://journals-
jd.upm.edu.my/resources/files/Pertanika%20PAPERS/JSSH%20Vol.%2026%20(3)°/o20Sep.%202018/
24%20JSSH-1951-2016.pdf.
1


meet the most basic requirements of attending school. The rising costs of 
transportation, food, school supplies, and digital needs now significantly affect 
students' academic performance and attendance.
This allowance should not be viewed as another form of ayuda or short-term 
relief. Rather, it is a legitimate and equitable investment in students' access to 
education—designed to help cover basic recurring needs such as food, transportation, 
and school supplies—without which many learners would be unable to stay in school 
or perform well.
This bill seeks to establish a National Student Allowance Program (NSAP) 
implemented through various disbursement mechanisms, including a student card or 
voucher system that students may use with accredited educational vendors and 
service providers, such as school canteens, transport operators, and school supply 
retailers. To support this, the government may offer administrative support or tax 
incentives to ensure that the full value of the allowance reaches the student with no 
deductions.
This program is grounded in the belief that investing in every Filipino student, 
the nation's future, is investing in the present and the future. This is a worthy 
expenditure.
In view of the foregoing, the immediate passage of this measure is earnestly 
sought.
LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
JUL -9 ?4 :Q3
SENATE
s. No. 302
Introduced by: Senator Loren Legarda
AN ACT
ESTABLISHING A NATIONAL STUDENT ALLOWANCE PROGRAM AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "National Student
2 
Allowance Program Act of 2025".
3 
Sec. 2. Declaration of Policy. - It is the declared policy of the State to protect
4 
and promote the right of all citizens to quality education at all levels, shall take
5 
appropriate steps to make such education accessible to all by addressing financial
6 
barriers that hinder school attendance, participation, and academic performance.
7 
In pursuit of this, the State shall implement a student allowance program as a
8 
form of targeted, recurring assistance meant to supplement the essential daily needs
9 
of students, particularly for food consumed at school, transportation to and from
10 
school, and basic school supplies. This allowance shall not be construed as a form of
11 
ayuda or general welfare dole-out, but as a strategic and equitable investment in
12 
learners' continued access to education.
13 
The State shall allow for various modes of disbursement as may be determined
14 
by the implementing agencies, including but not limited to voucher or student card
15 
systems, taking into account accessibility, geographic limitations, and the diverse


1 
contexts of students across the country, particularly those in geographically isolated
2 
and disadvantaged areas (GIDAs).
3 
Sec. 3. National Student Allowance Program (NSAP). - All Filipino students
4 
enrolled at all levels, including kindergarten, elementary, high school, and college,
5 
shall be entitled to an allowance of at least One Thousand Pesos (Php 1,000) at the
6 
start of every school year and up to every month of the school year, at such amount
7 
and frequency as may be determined by the President in consultation with the
8 
Department of Education (DepEd), Commission on Higher Education (CHED),
9 
Department of Budget and Management (DBM), and Department of Finance (DOF),
10 
for the purpose of augmenting expenses incurred by students attending school from
11 
including but not limited to food, transportation, technology, and school supplies.
12 
Sec. 4. Conditions for Entitlement - A Filipino student shall receive the
13 
allowance subject to being enrolied in school and satisfying the minimum attendance
14 
requirements for classes so far during a given month of at least Eighty Percent (80%)
15 
or as otherwise determined by the DepEd and CHED. This allowance shall be in
16 
addition to and shali not replace or diminish any other public or private scholarships,
17 
allowances, or financial aid extended to the student.
18 
Accountability measures for falsification of attendance, including administrative
19 
sanctions for school personnel and disqualification of students proven to have
20 
knowingly benefited through misrepresentation shall be strictly enforced in accordance
21 
with existing civil service rules, DepEd and CHED administrative issuances, and other
22 
applicable laws.
23 
Sec. 5. Disbursement - For below 18-years-old students, disbursements shall
24 
be made to the parent or guardian, and for at least 18-years-old students,
25 
disbursements shall be made directly to the student.
26 
The DepEd and the CHED shall ensure that all eligible students are provided
27 
with direct, secure, and convenient access to the allowance, either through cash,
28 
digital disbursement, or voucher-based instruments such as student identification
29 
cards or reloadable cards, which may be used with accredited educational vendors,
30 
including school canteens, transportation services, and other suppliers of school-
31 
related goods.


1 
DepEd and CHED may also enter into partnerships with banks, digital financial
2 
service providers, or other accredited institutions, subject to guidelines set by the
3 
Bangko Sentral ng Pilipinas (BSP) and other relevant government agencies, to
4 
implement a disbursement system that is responsive to the varying geographic,
5 
technological, and socioeconomic contexts of the beneficiaries.
6 
For this purpose, DepEd and CHED shall develop a system for the registration
7 
and accreditation of educational vendors and service providers, including but not
8 
limited to school canteens, school transport operators, bookstores, and school supply
9 
retailers, in coordination with relevant local government units and agencies.
10 
Sec. 6. Financial Inclusion. - The disbursement system, through card or
11 
voucher, shall be designed to support digital financial inclusion, allowing students to
12 
use the card not only to access their allowance but also as a basic savings or e-wallet
13 
account, subject to applicable regulations. The BSP and partner financial institutions
14 
shall ensure that the system promotes secure and inclusive access to financial services,
15 
especially for students in remote or underserved areas.
16 
Sec. 7. Administrative Costs. - The DepEd, CHED, and other implementing
17 
agencies shall allocate a reasonable portion of the program budget to cover
18 
administrative cost and expenses, including, but not limited to, the development of
19 
information systems, accreditation of vendors, financial management, monitoring and
20 
evaluation, production of student cards or vouchers, and personnel training.
21 
Sec. 8. Incentives. - The government shall promote private sector participation
22 
in the NSAP through fiscal and non-fiscal incentives that ensure equitable, efficient,
23 
and accountable service delivery to student beneficiaries. There shall be an additional
24 
5% deduction from gross income equivalent to the value of administrative or
25 
transaction fees waived by accredited private partner service providers such as, but
26 
not limited to, school canteens, transport operators, bookstores, and school supply
27 
retailers, who participate in the NSAP and ensure that students receive the full value
28 
of their allowance without deductions.
29 
The Bureau of Internal Revenue (BIR), in coordination with the Department of
30 
Finance (DOF), shall issue the necessary rules and regulations to implement this
31 
provision, including the documentation and certification requirements for claiming the
32 
tax incentive.


1 
Sec. 9. Appropriations. - The amount necessary to carry out the initial
2 
implementation of this Act shall be included in the respective budgets of the
3 
departments and agencies concerned in the annual General Appropriations Act.
4 
Sec. 10. Sustainabiiity Framework for Long-Term Funding. - The DOF, in
5 
coordination with the DBM, the Department of Economy, Planning and Development
6 
(DEPdev), the DepEd, and the CHED, shall formulate and periodically update a
7 
Sustainability Framework for the long-term financing of the program.
8 
As part of this framework, the DOF and its partner agencies shall conduct an
9 
actuarial analysis every five (5) years to assess the program's long-term sustainability,
10 
cost projections, and demographic trends affecting its implementation.
11 
Sec. 11. Monitoring and Compiiance. - The DepEd and the CHED, in
12 
coordination with the DBM, shall establish a monitoring and compliance mechanism to
13 
ensure that the allowance is used solely for its intended purpose taking into
14 
consideration transaction monitoring systems, vendor compliance checks, school-level
15 
reporting, annual program reviews, and public grievance and feedback mechanisms.
16 
Sec. 12. Impiementing Ruies and Reguiations. - Within ninety (90) days from
17 
the effectivity of this Act, the DepEd and CHED, in coordination with the DBM, DOF,
18 
and other concerned government agencies and stakeholders, shall issue the rules and
19 
regulations implementing the provisions of this Act.
20 
The agencies shall ensure that the program is implemented in a manner that
21 
maintains student choice and dignity, and continues to reflect the principle of equitable
22 
assistance across socioeconomic levels.
23 
Sec. 13. Non-Poiiticization of the Program. - The implementation of this Act
24 
shall be strictly non-partisan. No public official or candidate shall claim credit for,
25 
interfere in, or use the educational assistance for political or electoral purposes.
26 
The assistance shall not bear the name, image, or logo of any public figure or
27 
political party, and shall only use the official branding of the implementing agencies.
28 
Disbursement shali be handled solely by authorized personnel of DepEd, CHED, or
29 
other designated agencies, and not by eiected officiais or their representatives.
30 
Any attempt to politicize the program or influence the selection or release of
31 
benefits shall be punishable under applicable laws, including the Anti-Graft and
32 
Corrupt Practices Act and the Omnibus Election Code.


1 
The implementing agencies shall establish clear reporting and grievance
2 
mechanisms to detect and address violations of this section.
3 
Sec. 14. Separability Clause. - If any provision of this Act shall be held
4 
unconstitutional, the remainder of this Act not otherwise affected shall remain in full
5 
force and effect.
6 
Sec. 15. Repealing Clause. - All laws, executive orders, presidential decrees,
7 
rules, and regulations, or parts thereof inconsistent with any provisions of this Act are
8 
hereby repealed, amended, or modified accordingly.
9 
Sec. 16. Effectivity. - This Act shall take effect fifteen (15) days after its 
10 publication in the Official Gazette or in a newspaper of general circulation.
Approved,