Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 2583

Introduced by Representative Ryan S. Recto

EXPLANATORY NOTE

This legislative measure seeks to establish the Presidential Merit Scholarship
Program for the top one (1%) of students in all public and private higher education
institutions (HEIs) nationwide. These outstanding students shall be automatically
granted Twenty Thousand Pesos (P20,000.00) per academic year to help with
additional educational expenses.

Data from the Second Congressional Commission on Education's (EDCOM I!)
Year-end report reveals a concerning trend in the Philippine education landscape, with
the national college dropout rate for school year 2023-2024 reaching a high of 39%. This
means that at least 4 out of 10 college students either temporarily or permanently leave
school. Compounding this issue is the significant reduction in tertiary education
subsidies for the poorest students, which plummeted from 74.24% in 2018 to a mere
30.74% in 2022.

Financial constraints, more often than not, significantly impede even the most
academically gifted students. This hinders them from fully realizing their full potential
and deprives them of the success they rightfully deserve. While tuition is subsidized by
the State through the Universal Access to Quality Tertiary Education Act, the law does
not cover miscellaneous fees and expenses. When high-achieving individuals,
particularly those from socio-economically challenged backgrounds, are forced to delay
or abandon their studies due to costs not covered by free tuition, the nation loses out on

potential doctors, engineers, scientists, educators and public servants. This not only


perpetuates cycles of poverty but also undermines the country's capacity for innovation
and sustained development.

This law aims to address such issues by giving financial relief to the top
performing students from each college or university, regardless of their socio-economic
background. The law ensures that no student is left behind as academic excellence is
truly rewarded and supported.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

YAN S. RECTO
Representative
6" District, Batangas


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 258 3

Introduced by Representative Ryan S. Recto

AN ACT
ESTABLISHING THE PRESIDENTIAL MERIT SCHOLARSHIP PROGRAM, PROVIDING
FUNDS THEREFOR, 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 "Presidential Merit
Scholarship Act of 2025."

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to
promote the right of all citizens to quality education at all levels. The State recognizes
the crucial role of academic excellence in nation-building and shall endeavor to identify,
nurture and empower exceptionally talented students. This Act aims to provide financial
assistance and incentivized public service opportunities to the most outstanding college
students, ensuring that their potential is maximized for the greater good and the
advancement of the Philippines.

SEC. 3. Establishment of the Presidential Merit Scholarship Program. - There is
hereby established the Presidential Merit Scholarship Program (PMSP), a national
scholarship program to be administered by the Commission on Higher Education
(CHED).

SEC. 4. Eligibility and Automatic Scholarship. - The top one percent (1%) of
students enrolled in public and private higher education institutions (HEIs) duly
accredited by CHED shall be eligible for the PMSP, based on their academic
performance at the end of each academic year, in each college or department within an
HEI, and shall automatically qualify as Presidential Merit Scholars for the succeeding
academic year, subject to the availability of funds and continued academic excellence.
For purposes of this Act, academic performance shall be determined by the cumulative
General Weighted Average (GWA) or the equivalent grading system of the students
within their respective college or department, as certified by the Registrar of the HEI
The CHED shall establish the guidelines for the ranking of students.

SEC. 5. Scholarship Benefits. - Each qualified Presidential Merit Scholar shall
receive a scholarship grant of Twenty Thousand Pesos (P20,000.00) per academic year:


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Provided, That it shall be used to cover tuition and other school fees, books, supplies,
and other education-related expenses: Provided, further, That it shall be disbursed
directly to the scholar or their HEI, as may be determined by CHED, in accordance with
its implementing rules and regulations.

SEC. 6. Implementing Rules and Regulations. - Within ninety (90) days from the
effectivity of this Act, the CHED shall, in consultation with the other relevant agencies,
promulgate the necessary rules and regulations for its effective implementation.

‘SEC. 7. Appropriations. - The amount necessary for the initial implementation of
this Act shall be charged against the current year's appropriations of CHED. Thereafter,
such sums as may be necessary for the continued implementation of this Act shall be
included in the annual General Appropriations Act (GAA).

SEC. 8. Separability Clause. - If any provision or part hereof is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shail
remain in full force and effect.

SEC. 9. Repealing Clause. — All laws, acts, decrees, executive orders, issuances,
and rules and regulations or parts thereof which are contrary to and inconsistent with
this Act are hereby repealed, amended or modified accordingly.

SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,