Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by REP. RODOLFO “OMPONG” M. ORDANES 
AN ACT MANDATING LOCAL GOVERNMENT UNITS TO ALLOCATE 
THIRTY PERCENT (30%) OF THE SPECIAL EDUCATION FUND FROM REAL 
PROPERTY TAX COLLECTIONS FOR THE PROVISION OF EDUCATIONAL 
ASSSITANCE TO POOR AND DESERVING STUDENTS, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
Education remains one of the most effective tools to break the cycle of poverty and 
uplift the lives of Filipinos, especially those in marginalized sectors. However, access 
to quality education remains a challenge for many low-income but deserving students 
due to financial constraints. 
Under the Local Government Code of 1991, the Special Education Fund (SEF) is 
sourced from an additional one percent (1%) real property tax imposed by provinces, 
cities, and municipalities. This fund is intended for the operation and maintenance of 
public schools, including the construction and repair of school buildings, as well as 
support for educational programs. Despite its intended purpose, the full potential of 
the SEF to directly support underprivileged students remains underutilized. A recent 
study by the Second Congressional Commission on Education (EDCOM 2) found that 
from 2018 to 2022, an estimated ₱15 billion of SEF was unspent, by 2022 alone, with 
LGUs using only about 43% of their SEF, and cities showing the highest 
underutilization rate at 57%1. 
As such, this bill seeks to maximize the use of the SEF by mandating that thirty percent 
(30%) of its annual collection be allocated for educational assistance to poor and 
deserving students residing within the local government unit (LGU). This allocation 
will ensure that a portion of public resources is directly invested in the academic 
advancement and future of financially disadvantaged learners. 
To ensure transparency and accountability, the selection of beneficiaries shall be 
1 https://edcom2.gov.ph/lgu-special-education-fund-underutilized/ 
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determined by a Local Scholarship Selection Committee composed of representatives 
from the Schools Division Office, civil society organizations, people’s organizations, 
religious groups, and other relevant stakeholders. This multisectoral approach 
promotes inclusivity and fairness in the identification and recommendation of 
qualified applicants. 
By institutionalizing this measure, LGUs will be empowered to take a more active role 
in addressing educational inequality, and thousands of Filipino families will have a 
better chance at a brighter future. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
RODOLFO “OMPONG” M. ORDANES 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by REP. RODOLFO “OMPONG” M. ORDANES 
AN ACT MANDATING LOCAL GOVERNMENT UNITS TO ALLOCATE 
THIRTY PERCENT (30%) OF THE SPECIAL EDUCATION FUND FROM REAL 
PROPERTY TAX COLLECTIONS FOR THE PROVISION OF EDUCATIONAL 
ASSISTANCE TO POOR AND DESERVING STUDENTS, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Scholar ng Bayan 
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Act.” 
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SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to 
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promote equal access to quality education for all. To achieve this, the State shall 
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strengthen the role of local government units (LGUs) in supporting poor and 
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deserving students by mandating the allocation of a portion of the Special Education 
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Fund (SEF) from real property tax collections for educational assistance. 
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SEC. 3. Allocation of Educational Assistance Fund. – Section 272 of Republic 
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Act No. 7160, otherwise known as the “Local Government Code” shall be amended to 
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read as follows: 
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“Section 272. Application of Proceeds of the Additional One 
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Percent SEF Tax. - The proceeds from the additional one percent (1%) tax 
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on real property accruing to the Special Education Fund (SEF) shall be 
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automatically released to the local school boards: Provided, That, in case 
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of provinces, the proceeds shall be divided equally between the provincial 
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and municipal school boards: Provided, however, That the proceeds shall 
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be allocated for the operation and maintenance of public schools, 
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construction and repair of school buildings, facilities and equipment, 
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educational research, purchase of books and periodicals, and sports 
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development as determined and approved by the Local School Board: 
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PROVIDED FURTHER, THAT ALL PROVINCES, CITIES AND 
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MUNICIPALITIES SHALL ALLOCATE THIRTY PERCENT (30%) OF 
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THE TOTAL ANNUAL COLLECTIONS FROM THE SEF FOR THE 
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PROVISION OF EDUCATIONAL ASSISTANCE TO POOR AND 
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DESERVING STUDENTS RESIDING IN THEIR RESPECTIVE 
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LOCALITIES.” 
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SEC. 4. Eligibility Criteria. – To qualify for the educational assistance program, 
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students must: 
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a. be a resident of the LGU for at least one (1) year prior to application; 
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b. be enrolled in any public or private college or university duly recognized 
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by the Commission on Higher Education (CHED); 
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c. belong to a household whose income does not exceed the poverty threshold 
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set by the Philippine Statistics Authority (PSA); and 
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d. demonstrate academic potential or consistent satisfactory academic 
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performance. 
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SEC. 5. Selection Committee. – Each LGU shall create a Local Scholarship 
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Selection Committee (LSSC) composed of the following: 
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a. Representative from the Schools Division Office (DepEd) in the LGU; 
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b. Representative from Civil Society Organizations (CSOs) in the LGU; 
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c. Representative from People’s Organizations (POs) in the LGU; 
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d. Representative from a Religious Group operating in the locality; 
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e. Representative from the Local Youth Development Office, if available; and 
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f. One (1) member of the Sangguniang Panlungsod or Sangguniang Bayan as 
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designated by the Mayor. 
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The LSSC shall formulate the implementing guidelines, evaluate applications, 
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and recommend qualified beneficiaries to the Local Chief Executive for approval. 
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SEC. 6. Implementation Guidelines. – The Department of the Interior and Local 
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Government (DILG), in consultation with the Department of Education (DepEd) and 
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the Department of Budget and Management (DBM), shall issue the necessary 
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guidelines for the effective implementation of this Act within ninety (90) days from its 
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effectivity. 
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SEC. 7. Separability Clause. – If any provision of this Act is declared 
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unconstitutional or invalid, the remaining provisions not affected shall continue to be 
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in full force and effect. 
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SEC. 8. Repealing Clause. – All laws, executive orders, rules, and regulations 
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inconsistent with this Act are hereby repealed or modified accordingly. 
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SEC. 9. Effectivity. – This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in a newspaper of general circulation. 
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Approved, 
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