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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
REQUIRING THE GOVERNMENT TO ISSUE EDUCATIONAL BONDS FOR THE 
BENEFIT OF UNDERPRIVILEGED TERTIARY EDUCATION STUDENTS, AND 
APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
For most Filipino families, education is the investment that pays the best interest. This 
is why parents dream to provide the best possible education to their children. Except for food 
which stood at 41.5 percent of total household allocation in 2018, Filipinos spend the most on 
education, allocating around 15.4 percent of the monthly household budget, exceeding the 
global average of 8 percent1. This is reflective on how much Filipinos give premium on 
education. Education is seen as a levelling factor that will help them compete for better jobs 
and better salaries. 
However, according to the Philippine Statistics Administration’s 2017 Annual Poverty 
Indicators Survey (APIS) the percentage of drop outs remains high. In its 2017 survey of out-
of-school children and youth (OSCY), the PSA determined that of the 39.2 million Filipinos 
aged 6 to 24 years old 9.1% belong to OSCY. In 2016, the equivalent percentage was 9.8%2. 
The most common reasons cited for not attending school were marriage or family matters 
(42.3%); high cost of education/financial concern (20.2%); and lack of personal interest 
(19.7%).3 The PSA said around 50% of OSCYs belong to families whose incomes were in the 
bottom 30% on a per capita basis.4 
1 https://news.abs-cbn.com/focus/08/22/18/average-pinoy-family-spends-almost-half-of-funds-on-
food-study 
2 https://www.bworldonline.com/out-of-school-population-declines-in-2017-psa-says/) 
3 Philippines Statistics Authority, Reference Number: 2017-068 Release Date:  Tuesday, June 13, 
2017 
4 https://www.bworldonline.com/out-of-school-population-declines-in-2017-psa-says/) 
July 1, 2022
8:00 am
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The numbers are very clear. Poverty is the greatest single driving force that keeps 
children away from school. Poverty restricts a child’s view of the future. Poor families are more 
preoccupied with providing themselves with food, shelter and paying the bills so that education 
is relegated to the backburner. Often, the children are forced to do odd jobs in order to help 
their parents make ends meet. According to the PSA’s Multidimensional Poverty Index, 
poverty impacts most heavily on education with the education dimension having the largest 
share or contribution to overall deprivation (MPI) at 36.5 percent and 36.9 percent in 2016 and 
2017, respectively. 
Despite the many financial assistance programs extended by the government and 
private sector to poor students, the education system remains plagued with deep inequalities. 
Millions of children and young adults remain out of school due primarily to poverty. While 
laws are in place to assist students financially like Universal Access to Quality Tertiary 
Education Act for instance that institutionalises free tuition and exemption from other fees in 
state universities and colleges (SUCs), local universities and colleges (LUCs), these may not 
be adequate. Education policies by the government as well as the capacity to send children to 
school may be subject to political and economic vicissitudes. A government of the day may 
shift its concern on other areas away from education which may restrict universal access just 
as because of inflation and unemployment, thus parents may be hard pressed sending their 
children to school. As the above graph shows, financial capacity plays a major role in keeping 
our children in school; stated negatively, poverty keeps our children away from school. 
In order to negate these future uncertainties, the proposed bill endeavours to require the 
Government of the Philippines, through the Bureau of Treasury, to issue treasury bonds in 
favour of every child born at any given year with a maturity date extending until the beneficiary 
reaches eighteen (18) years of age. The Treasury Bond shall have the unconditional backing 
by the full faith and credit of the Philippine government, with guaranteed return of both interest 
and principal as they fall due.  The proceeds of the bond shall be used exclusively to augment 


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any and all financial assistance extended by the government to students whether enrolled in a 
public or private educational institution. 
The number of treasury bonds to be issues shall be based on the average yearly live 
births as officially declared by the Philippine Statistics Authority at any given year. Thus, for 
instance in 2017, the PSA declared that a total of 1,700,618 live births was registered which is 
equivalent to a crude birth rate (CBR) of 16.2 or 16 births per thousand population5 According 
to the PSA, the number of registered live births showed a decreasing trend, noticeably from 
2012 to 2017. The decrease in the last five years was 5.0 percent, from 1,790,367 live births in 
2012 to 1,700,618 recorded births in 2017. (See Figure 1 and Table 1). It is projected that the 
yearly birth rate will vary, hence, the volume of treasury bonds issuable shall likewise adjust 
accordingly. 
On the basis of the above cited figures, the Bureau Treasury shall issue a corresponding 
number of treasury bonds with par value of twenty five thousand pesos (Php 25,000.00) each 
and maturity of up to eighteen (18) years. All proceeds of the bond shall be pooled and held in 
trust by the National Treasurer, in a fund called “Educational Bond Fund”, which will then be 
applied to school expenditures to support the cost of tertiary education or any part or portion 
thereof. Release of the amount to the beneficiary shall be subject to the following conditions: 
1. At the time he or she reaches eighteen (18) years of age, he or she must be enrolled
in undergraduate-post-secondary programs of State Universities or Colleges, Local
Universities and Colleges, private Higher Education Institutions and all Technical
Vocational Institutions;
2. That at the time of bond maturity, the student is part of household included in the
National Household Targeting System for Poverty Reduction (NHTS-PR) or
Listahanan 2.0;
5 https://psa.gov.ph/content/births-philippines-2017 


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The primary objective of the proposed bill is to put up a mechanism, that is the issuance 
of government securities or treasury bonds that would guarantee future funds for the education 
of the underprivileged Filipino youth that is insulated from the vagaries of politics and 
economic uncertainties. 
In view of the foregoing, the passage of this bill is earnestly sought 
JOEY SARTE SALCEDA 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
REQUIRING THE GOVERNMENT TO ISSUE EDUCATIONAL BONDS FOR THE 
BENEFIT OF UNDERPRIVILEGED TERTIARY EDUCATION STUDENTS, AND 
APPROPRIATING FUNDS THEREFOR 
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 “Educational Bond for 
Tertiary Education Act.” 
SEC. 2. Declaration of Policy. – It is the declared policy of the State to make education 
accessible to all regardless of social and economic status. Towards this end, the State shall 
harness all available financial resources to increase participation by Filipinos across all socio-
economic strata in tertiary education and, as far as practicable, enable them to complete their 
education.    
SEC. 3. Definition of Terms. – As used in this Act: 
(a) Educational  Bond -  refers to a long-term government security issued by a national
government with  corresponding interest and sovereign guarantee;
(b) Educational Bond Trustee - refers to the government agency, in this case the
Commission on Higher Education (CHED).  Any and all funds derived from the
proceeds of the issuance of the Treasury Bond shall be entrusted to CHED for
safekeeping; and
(c) Tertiary Education  - refers to the stage of education following the secondary cycle
which covers post-secondary nondegree diploma, TVET, and higher education
programs, including graduate education;
(d) Underprivileged Tertiary Education Student – refers to a Filipino student at the
tertiary level whose parents have a gross annual income that is considered to be
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within and below the poverty line, as determined by the National Economic and 
Development Authority. 
 
SEC. 4. Issuance of Educational Bond. – The Government, through the Bureau of 
Treasury (BoT) and the Department of Finance (DOF), shall issue an educational bond in the 
name of every Filipino at birth which gives him or her the inchoate right to the proceeds of said 
security instrument upon maturity.  
 
SEC. 5. Number of Educational Bonds to be Issued. – The number of educational 
bonds for issuance shall be based on the yearly average birth rate as officially declared by the 
Philippine Statistics Authority (PSA). 
 
SEC. 6. Key Features of the Educational Bond. – For purposes of this Act, the 
educational bond issued by the BoT and the DOF shall have the following key features:  
 
(a) With a maturity period of eighteen (18) years; 
(b) With a face value of Twenty Five Thousand Pesos (Php 25,000.00)  
(c) With fixed interest rate; 
(d) Risk free; and, 
(e) Non-negotiable and non-transferable. 
 
For purposes of this Act, no other class or category of bonds or securities shall be issued 
by the government other than that specified herein.  
 
SEC. 7. Qualified Beneficiary. – The proceeds from the educational bond shall be 
released to the qualified beneficiary only under the following conditions:  
 
(a) At the time the underprivileged student reaches eighteen (18) years of age, which 
coincides with the maturity date of the bond, he or she must be enrolled  in a post-
secondary nondegree certificate or diploma course in a public or private technical-
vocational institution or in an undergraduate degree program in any state university or 
college, local university or college or private higher education institution; and 
 
(b) That, at the time of bond maturity, the beneficiary is part of the household included in 
the poverty data under Republic Act No. 11315, otherwise known as the “Community-
Based Monitoring System Act”, or any other law establishing a monitoring and 
targeting system for poor households that may be enacted in the future.    
 
SEC. 8. Placing Educational Bond for Public Auction. – Any and all educational 
bonds assigned to unqualified and disqualified beneficiaries shall be placed on the auction 
block one (1) year after the date of maturity. The proceeds therefrom shall revert to the National 
Treasury.  
 
SEC. 9.  Educational Bond Trustee. – The CHED is hereby appointed as trustee of the 
bond.  Any and all funds derived from the proceeds of the issuance of the bond shall be held 
by the CHED for safekeeping. The CHED, in close coordination with the Bureau of Treasury 
and the DOF, shall adapt a mechanism for the efficient, fool-proof, and speedy release of the 
proceeds accruing from the securities to qualified beneficiaries.  
 


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SEC. 10. Rule Making Authority. – The CHED, DOF, and the National Treasury shall 
be in charge of the administration and enforcement of this Act. 
 
SEC. 11. Implementing Rules and Regulations. Within ninety (90) days from the 
effectivity of this Act, the CHED, DOF, and the National Treasury shall promulgate the 
necessary implementing rules and regulations to implement this Act.  
 
SEC. 12. Appropriations. – Such sums as may be necessary to implement the 
provisions of this Act are hereby appropriated out of any funds of the National Treasury not 
otherwise appropriated. Thereafter, the same shall be included in the annual General 
Appropriations Act.  
 
SEC. 13. Separability Clause. – If any provision of this Act or the application of such 
provision to any person or circumstances is declared invalid, the remainder of this Act or the 
application of such provision to any other person or circumstances shall not be affected by such 
declaration.  
 
SEC. 14. Repealing Clause. – All laws, decrees, ordinances, rules and regulations, 
executive or administrative orders and other presidential issuances inconsistent with this Act, 
are hereby repealed, amended or modified accordingly. 
 
SEC. 15. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,