Republic of the Philippines​
HOUSE OF REPRESENTATIVES​
Quezon City 
TWENTIETH CONGRESS 
First Regular Session​
HOUSE BILL NO. ____ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
AN ACT  
PROHIBITING ANY FORM OF INTERFERENCE BY NATIONAL GOVERNMENT 
AGENCIES WITH THE USE OF THE NATIONAL TAX ALLOTMENT AND 
LOCALLY-GENERATED REVENUES OF LOCAL GOVERNMENT UNITS 
EXPLANATORY NOTE 
The State’s policy on local autonomy is principally stated in Section 25, Article 
II of the 1987 Constitution, which declares: “[t]he State shall ensure the autonomy 
of local governments.” 
The continued imposition by National Government Agencies (NGAs) of 
numerous rules, regulations, and directives on Local Government Units (LGUs) has, 
in effect, undermined the autonomy expressly granted to them under the 
Constitution and the Local Government Code of 1991. This pervasive reliance on 
executive issuances has curtailed the capacity of LGUs to exercise genuine local 
self-governance, depriving them of the necessary latitude to formulate and 
implement policies and mechanisms responsive to the unique needs and 
circumstances of their respective constituencies. 
This measure seeks to strengthen local autonomy by prohibiting NGAs from 
issuing rules or regulations that interfere with the use of the National Tax Allotment 
(NTA) and locally generated revenues by LGUs. Such issuances shall be deemed void 
and without legal effect. NGA officials or employees who violate this prohibition shall 
be subject to removal from office. By instituting these safeguards, the measure 
ensures that LGUs are afforded the necessary fiscal space to fulfill their mandates 
without undue interference from the national government. 
In line with these intentions, the passage of this bill is respectfully sought. 
HON. BERNADETTE “DETTE” G. ESCUDERO 
Representative 
1st District, Sorsogon 
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July 17, 2025
4:02 pm
2099


Republic of the Philippines​
HOUSE OF REPRESENTATIVES​
Quezon City 
TWENTIETH CONGRESS 
First Regular Session​
HOUSE BILL NO. ____ 
Introduced by REP. BERNADETTE “DETTE” G. ESCUDERO 
AN ACT  
PROHIBITING ANY FORM OF INTERFERENCE BY NATIONAL GOVERNMENT 
AGENCIES WITH THE USE OF THE NATIONAL TAX ALLOTMENT AND 
LOCALLY-GENERATED REVENUES OF LOCAL GOVERNMENT UNITS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Declaration of Policy. – It is hereby declared the policy of the 
State for the government to strengthen, and work for, full local autonomy 
guaranteed under Section 2, Article X of the Constitution as a means to ensure local 
fiscal governance and administration of Local Government Units (LGUs) without any 
interference 
from 
the 
National 
Government 
(NG), 
especially 
with funds 
constitutionally allocated to and solely generated by them. While the President may 
have general supervision over LGUs, such power must be used to enhance, not to 
frustrate, self-governance of every territorial and political subdivision of the State.  
Sec. 2. Prohibition. – Notwithstanding any other provisions of law to the 
contrary, all agencies of the NG shall not issue or promulgate any rules or 
regulations in the form of memoranda, circulars, orders, resolutions, guidelines or 
any other issuances in the performance of their respective statutory functions and 
duties that shall interfere, in any form, with the use of the National Tax Allotment 
and locally generated revenues of LGUs.  
Sec. 3. Definition of Terms. – For purposes of this Act: 
a) National Government refers to the entire machinery of the central
government as distinguished from the different forms of local
governments;
b) Interference in any form refer to any rule or regulation in the form of
memorandum, circular, order, resolution, guideline or any other
issuance that impede, prevent, disturb or obstruct the activities or the
conduct of the business or contractual relations of LGUs, or those that
enter into the local concerns, duties or functions of LGUs;
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2099


 
c)​ Local Government Units or LGUs refer to the territorial and political 
subdivisions of the Philippines established by or in accordance with 
Section 1, Article X of the Constitution; 
d)​ National Tax Allotment refer to the just share of LGUs in the national 
taxes as provided under Section 6, Article X of the Constitution; 
e)​ Locally Generated Funds refer to any and all funds solely realized, 
produced or gained by LGUs and that as provided for in Section 5, 
Article X of the Constitution. 
 
Sec. 4. Effect. – Notwithstanding any other provisions of law to the contrary, 
any rule or regulation in the form of memoranda, circular, order, resolution, 
guideline, or any other issuance issued or promulgated by agencies of the National 
Government in violation of this Act shall be rendered void and without effect. 
Furthermore, any official or employee of the National Government found to be 
responsible for such issuance or promulgation by a court of competent jurisdiction 
under this Act shall be removed from office. 
Sec. 5. Separability Clause. – If any part or provision of this Act shall be 
held unconstitutional or invalid, other provisions hereof which are not affected 
hereby shall continue to be in full force and effect. 
Sec. 6. Repealing Clause. – All laws, presidential decrees, executive 
orders, rules, and regulations or parts thereof which are inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly.  
Sec. 7. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or at least two (2) newspapers of general 
circulation. 
 
Approved,  
 
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