Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. KENNETH T. GATCHALIAN 
EXPLANATORY NOTE 
The 1987 Constitution states that the government must ensure all citizens have access to 
quality education at all levels, including providing scholarships, student loans, and other support, 
especially for the underprivileged. 
The "Adopt-a-School Act" of 1998 allows private companies to help public schools 
through funding and resources, particularly in the poorest provinces. These companies can get tax 
deductions for their contributions. 
A major issue in education is the weak connection between schools and industries. Despite 
the K to 12 program and laws like RA No. 10533, many private sector companies are unwilling to 
hire Senior High School graduates, even if they have the necessary skills. 
Surveys show that only about 24% of employers are ready to hire K to 12 graduates, with 
many unsure or unwilling to do so. Satisfaction with the Senior High School program has also 
declined, dropping from 40% in 2023 to 30% in 2025. 
The proposed measure seeks to strengthen the existing “Adopt-a-School” Program as 
follows: 
1. Inclusion of early childhood, alternative learning system (ALS), and technical-
vocational and training (TVET) as beneficiaries of the program;
2.
Encouraging private individuals and entities, whether local or foreign and of good
standing, to assist public educational institutions, especially those in the 4th and 5th class
provinces, cities, and municipalities experiencing severe shortages, insufficient budget,
or having numerous poor but high performing learners;
3. Provision of assistance including, but not limited to, training and development for
educators and learners, scholarships, construction and repair of school facilities,
provision of instructional materials and equipment, and modernization of educational
technologies;
July 30, 2025
11:32 am
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4. A Memorandum of Agreement shall formalize the adoption between the private
individual or entity and the educational institution, valid for at least two years and
subject to approval and periodic review by the concerned educational field office;
5. The bill mandates the creation of an Adopt-a-School One-Stop Shop by the
Department of Education, Commission on Higher Education, and Technical Education
and Skills Development Authority to serve as a central hub for queries and application
processing, supported by an integrated online portal;
6. Adopting individuals or entities will receive incentives, including a fifty percent
(50%) additional deduction on expenses incurred, a twenty  percent (20%) additional
deduction for hiring of SHS graduates, naming rights, and exemptions from import
duties and taxes on donations, as may be applicable; and
7.
Additional members for the Adopt-a-School Coordinating Council composed of
key government agency heads to include the Department of Trade and Industry,
Department of Labor and Employment, Bureau of Internal Revenue, and a private
sector representative from a reputable business group that will oversee the
implementation and coordination of the program.
In view of the foregoing, the immediate passage of this amendatory legislation is earnestly 
sought for. 
KENNETH T. GATCHALIAN


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. KENNETH T. GATCHALIAN 
AN ACT 
FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR 
PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS BY AMENDING 
CERTAIN PROVISIONS IN REPUBLIC ACT NO. 8525, OTHERWISE KNOWN 
AS THE “ADOPT-A-SCHOOL ACT OF 1998” 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:  
Section 1. Section 1 of Republic Act (R.A.) No. 8525, otherwise known as 
the “Adopt-a-School Act of 1998”, is hereby amended to read as follows: 
“Section 1. Title. - This Act shall be known and cited as the 
“Adopt-a-School Act of [1998] 2025”.  
Sec. 2. Section 2 of R.A. No. 8525 is hereby amended to read as follows: 
“Sec. 2. Declaration of policy. - It is the policy of the State to 
provide quality and relevant education to the Filipino youth and to 
encourage private initiative to support public education. Towards this 
end, 
the 
State 
shall 
institute 
programs 
to 
[encourage] 
INCENTIVIZE  THE  private [companies and enterprises] SECTOR to 
[help] ASSIST in the DEVELOPMENT, upgrading, and modernization 
of THE COUNTRY'S public [schools] EDUCATION SYSTEM [in the 
country, particularly those in poverty stricken provinces.] AND 
ESTABLISH 
PROPER 
LINKAGES 
BETWEEN 
EDUCATIONAL 
INSTITUTIONS 
AND 
THEIR 
RESPECTIVE 
INDUSTRIES, 
PARTICULARLY IN THE TRAINING AND EMPLOYMENT OF 
SENIOR HIGH SCHOOL (SHS) GRADUATES.” 
Sec. 3. Section 3 of R.A. No. 8525 is hereby amended to read as follows: 
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“Sec. 3. Adopt-a-School Program. - There is hereby established the 
“Adopt-a-School Program” which will allow private INDIVIDUALS OR 
entities, WHETHER LOCAL OR FOREIGN, OF GOOD STANDING to 
assist [a] public [school] EDUCATIONAL INSTITUTIONS, whether 
EARLY CHILDHOOD, [elementary, secondary,] BASIC EDUCATION, 
INCLUDING THE ALTERNATIVE LEARNING SYSTEM (ALS), 
TECHNICAL-VOCATIONAL AND TRAINING (TVET), or [tertiary] 
HIGHER EDUCATION, preferably located in [any of the twenty (20) 
poorest provinces identified by the Presidential Council for 
Countryside Development or any other government agency tasked 
with identifying the poorest provinces] THE 4TH AND 5TH CLASS 
PROVINCES, CITIES, AND MUNICIPALITIES AS DETERMINED 
BY  THE DEPARTMENT OF FINANCE (DOF) AND OTHER LOCAL 
GOVERNMENT 
UNITS 
(LGUs) 
EXPERIENCING 
SEVERE 
SHORTAGES, INSUFFICIENT BUDGET, OR HAVING NUMEROUS 
POOR BUT HIGH PERFORMING LEARNERS in, but not limited to, 
the following areas: TRAINING, DEVELOPMENT AND FURTHER 
EDUCATION 
FOR 
SCHOOL 
HEADS, 
TEACHERS, 
CHILD 
DEVELOPMENT TEACHERS AND WORKERS, TVET TRAINERS, 
FACULTY AND LEARNERS; ASSESSMENTS IN PURSUIT OF 
RELEVANT 
WORK-RELATED 
CERTIFICATIONS  
AND 
CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; REAL ESTATE 
PROPERTY [staff and faculty development for training and further 
education]; construction of SCHOOL facilities SUCH AS LIBRARIES 
AND LABORATORIES AND THOSE RELATED TO POWER, WATER, 
AND SANITATION; [upgrading] UPGRADE AND REPAIR of existing 
facilities, provision of books, publications, SCHOOL SUPPLIES, and 
other instructional materials SUCH AS ELECTRONIC BOOKS (E-
BOOKS), COMPUTERS, FURNITURE, EDUCATIONAL FILMS AND 
AUDIO-VISUAL 
MATERIALS; 
TECHNICAL 
VOCATIONAL 
LIVELIHOOD (TVL) TOOLS AND EQUIPMENT; HEALTH AND 
NUTRITION PACKAGES; ASSISTIVE LEARNING DEVICES AND 
EQUIPMENT 
FOR 
LEARNERS 
WITH 
DISABILITIES; 
and 
modernization of instructional technologies.  
A Memorandum of Agreement (MOA) specifying the details of the 
adoption shall be entered into between the adopting INDIVIDUAL OR 
entity and the head of the [school] EDUCATIONAL INSTITUTION 
concerned: Provided, That such MOA shall be subject to review and 
approval of the [Superintendent of Schools of the province or district 
concerned] CONCERNED FIELD OFFICE OF THE EDUCATIONAL 
INSTITUTION: Provided, further, That the agreement shall last for at 
least two (2) years with the possibility of extension: Provided, finally, 
That such period may be shortened only in cases where the adopting 
INDIVIDUAL OR entity is dissolved before the end of such period 
unless otherwise earlier terminated in accordance with [the 
succeeding section] THIS ACT.”  


  
Sec. 4. Insert a new Section under R.A. No. 8525 to read as follows, and 
renumber the succeeding sections accordingly:  
“SEC. 4.  CREATION AND ESTABLISHMENT OF AN ADOPT-A-
SCHOOL ONE-STOP SHOP. – THE CENTRAL OFFICES OF THE 
DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON 
HIGHER EDUCATION  (CHED),  AND  TECHNICAL  EDUCATION 
AND SKILLS DEVELOPMENT AUTHORITY (TESDA) AS WELL AS 
THEIR RESPECTIVE REGIONAL OFFICES SHALL BE MANDATED
 TO  ESTABLISH AND MAINTAIN AN ADOPT-A-SCHOOL ONE-
STOP SHOP WHICH SHALL SERVE AS A LOCATION TO ADDRESS 
QUERIES AND CONCERNS FROM PRIVATE 
INDIVIDUALS AND 
ENTITIES INTERESTED IN THE PROGRAM, AND TO RECEIVE 
AND PROCESS APPLICATIONS JOINTLY WITH BIR AND BUREAU 
OF CUSTOMS (BOC): PROVIDED, THAT DEPED, CHED, AND TESDA 
SHALL, IN CONSULTATION WITH THE DEPARTMENT OF 
INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT), 
ESTABLISH AN INTEGRATED ONLINE PORTAL TO RECEIVE AND 
PROCESS APPLICATIONS.”  
  
Sec. 5. Section 4 of R.A. No. 8525 is hereby amended to read as follows:  
“Section [4] 5. Periodic review. - A review of the adoption shall be 
undertaken by the [local school board of the province or city where the 
school] CONCERNED FIELD OFFICE WHERE THE PARTICIPATING 
SCHOOL is located. The standards and guidelines for the review shall 
be formulated by the ADOPT-A-SCHOOL Coordinating Council 
created under Sec. [7] 8 hereof. The results of the review shall be taken 
into consideration in the assessment of the application for tax credits 
by the adopting INDIVIDUAL OR entity. The [school board] 
CONCERNED FIELD OFFICE may, after an appropriate review, 
recommend to the ADOPT-A-SCHOOL Coordinating Council the 
termination of the adoption. The adopting INDIVIDUAL OR entity may 
appeal the assessment to the ADOPT-A-SCHOOL Coordinating 
Council whose decision shall be final and unappealable.”  
  
Sec. 6. Sections 5 and 6 of R.A. No. 8525 are hereby repealed and replaced 
with a new Section to be read as follows:  
“SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR 
ENTITIES. – PROVISIONS OF EXISTING LAWS TO THE CONTRARY 
NOTWITHSTANDING, ADOPTING INDIVIDUALS OR ENTITIES 
SHALL ENJOY THE FOLLOWING INCENTIVES:  
a. 
 ADDITIONAL 
DEDUCTION 
FOR 
EXPENSES 
INCURRED FOR THE ADOPTION – SCHOLARSHIPS FOR 
TEACHERS AND LABOR  TRAINING  EXPENSES INCURRED BY 
THE ADOPTING INDIVIDUALS OR ENTITIES FOR THE "ADOPT-
A-SCHOOL PROGRAM" SHALL BE ALLOWED AN ADDITIONAL 


DEDUCTION FROM THE GROSS INCOME EQUIVALENT TO 
FIFTY PERCENT (50%) OF SUCH EXPENSES: PROVIDED, THAT 
THE ADOPTING INDIVIDUALS OR ENTITIES SHALL SECURE 
PROPER CERTIFICATION FROM THE DEPED, CHED, OR TESDA: 
PROVIDED, FURTHER, THAT SUCH DEDUCTION SHALL NOT 
EXCEED TEN PERCENT (10%) OF DIRECT LABOR WAGE: 
PROVIDED, FINALLY, THAT ADOPTING INDIVIDUALS OR 
ENTITIES THAT IMPLEMENT A REGISTERED ENTERPRISE-
BASED EDUCATION AND TRAINING (EBET) PROGRAM SHALL 
BE ALLOWED TO AVAIL THE DEDUCTIBLE TRAINING EXPENSE 
AS PROVIDED UNDER SECTION 20 OF REPUBLIC ACT NO. 
12063 
OR 
THE 
“ENTERPRISE-BASED 
EDUCATION 
AND 
TRAINING (EBET) FRAMEWORK ACT”.  
VALUATION OF ASSISTANCE OTHER THAN MONEY SHALL 
BE  BASED  ON  THE  ACQUISITION  COST  OF  THE  GOODS, 
SERVICES AND REAL PROPERTY. SUCH VALUATION SHALL 
TAKE INTO CONSIDERATION THE DEPRECIATED VALUE OF THE 
GOODS AND REAL PROPERTY IN CASE SAID GOODS AND REAL 
PROPERTY HAVE ALREADY BEEN USED.  
b. 
ADDITIONAL DEDUCTION FOR HIRING OF PUBLIC 
SENIOR HIGH SCHOOL (SHS) GRADUATES – ADOPTING 
INDIVIDUALS OR ENTITIES WHO HIRE SHS GRADUATES FROM 
THEIR 
PARTNER 
PUBLIC 
SCHOOL 
SHALL 
ENJOY 
AN 
ADDITIONAL DEDUCTION EQUIVALENT TO 20% OF THE 
SALARIES, WAGES, AND BENEFITS PAID TO THE EMPLOYED 
SHS GRADUATE.  
c. 
ADDITIONAL INCENTIVES – IN ACCORDANCE WITH 
EXISTING LAWS AND SUBJECT TO THE GUIDELINES THAT 
SHALL BE PROVIDED IN THE IMPLEMENTING RULES AND 
REGULATIONS (IRR), THE ADOPTING INDIVIDUAL OR ENTITY 
SHALL BE ENTITLED TO HAVE ITS NAME EMBLAZONED 
BENEATH THE NAME OF THE SCHOOL AFTER THE WORDS 
INDICATING THAT THE SCHOOL IS UNDER THE ‘ADOPT-A-
SCHOOL PROGRAM.’”  
  
Sec. 7. Insert a new Section under R.A. No. 8525 to read as follows, and 
renumber 
the 
succeeding 
sections 
accordingly:  
 
“SEC. 7. EXEMPTION FROM IMPORT DUTIES, TAXES AND 
OTHER FEES. – THE  DONATED  GOODS,  REAL  PROPERTY, AND 
SERVICES BY AN ADOPTING INDIVIDUAL OR ENTITY  SHALL BE 
EXEMPT FROM CUSTOMS DUTIES, VALUE-ADDED TAX, EXCISE 
TAX, DONOR'S TAX, AND OTHER FEES: PROVIDED, THAT THE 
DONATIONS SHALL NOT BE RESOLD OR TRANSFERRED FOR 
MATERIAL CONSIDERATION.”  
  


Sec. 8. Section 7 or R.A. No. 8525 is hereby amended to read as follows:  
“Section [7] 8. ADOPT-A-SCHOOL Coordinating Council. – An 
ADOPT-A-SCHOOL Coordinating Council, hereinafter referred to s the 
Council, is hereby created to coordinate and monitor the 
implementation of this Act. The Council shall be composed of the 
Secretary of [the Department of Education, Culture and Sports 
(DECS)] DEPED, as chairperson; the Chairman of [the Commission on 
Higher Education (CHED)] CHED and the Director-General of [the 
Technical Education and Skills Development Authority (TESDA)] 
TESDA, 
as 
co-chairpersons; 
THE 
SECRETARY 
OF 
THE 
DEPARTMENT OF TRADE AND INDUSTRY (DTI); THE SECRETARY 
OF THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE); 
THE COMMISSIONER OF THE BUREAU OF INTERNAL REVENUE 
(BIR) and [the chairperson of the Presidential Council for Countryside 
Development (PCCD), and] a representative, WHO SHALL HAVE A 
TERM OF THREE (3) YEARS AND MAY BE REAPPOINTED FOR 
ANOTHER THREE (3) YEARS, from a [national federation of 
chambers of commerce and industry] REPUTABLE BUSINESS 
GROUP to be appointed by the President of the Philippines, as 
members.”  
THE SECRETARIES OF DEPED, DTI, AND DOLE, THE 
CHAIRMAN OF CHED, THE DIRECTOR-GENERAL OF TESDA, AND 
THE 
COMMISSIONER 
OF 
BIR 
MAY 
DESIGNATE 
THEIR 
RESPECTIVE ALTERNATES WITH RANKS NOT LOWER THAN 
ASSISTANT SECRETARY OR ITS EQUIVALENT. ALL ALTERNATES 
SHALL BE AUTHORIZED TO DECIDE FOR OR ON BEHALF OF 
THEIR RESPECTIVE PRINCIPALS.  
The Council shall meet once every three (3) months. The 
chairpersons and members shall not receive compensation but shall 
be entitled to reimbursements for reasonable expenses related to the 
Council's activities.   
The 
DEPED 
[DECS], 
CHED, 
[and] 
TESDA, 
DTI, 
AND 
DOLE,  through a mutual agreement, AND IN COORDINATION WITH 
DBM, shall each make provisions for the secretariat of the Council.  
THE COUNCIL SHALL COORDINATE WITH NATIONAL 
GOVERNMENT AGENCIES (NGAS) AND EXISTING COUNCILS 
RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF 
THIS ACT.”  
  
Sec. 9. Implementing Rules and Regulations (IRR). – Within sixty (60) days 
from the effectivity of this Act, the DepEd, CHED, TESDA, DTI, and DOLE, in 
consultation with the DOF, including the BIR and the BOC, as well as with the 
participation of the Early Childhood Care and Development Council Secretariat, 
shall formulate the IRR to implement this Act. The IRR issued pursuant to this 
section shall take effect thirty (30) days after its publication in a newspaper of 
general circulation.  


  
Sec. 10. Transitory Clause. – To prevent any delay in the delivery of goods, 
services, and real property, the provisions of R.A. No. 8525 or the “Adopt-a-School 
Act of 1998,” shall still apply to pending and ongoing transactions and/or 
donations by adopting individuals or entities.  
 
Sec. 11. Separability Clause. – If any portion or provision of this Act is 
declared unconstitutional, the remainder of this Act or any provision not affected 
thereby shall remain in full force and effect.  
  
Sec. 12. Repealing Clause. – 
All other laws, acts, presidential decrees, 
executive orders, presidential proclamations, administrative orders, issuances, 
rules and regulations, or parts thereof inconsistent with or contrary to the 
provisions of this Act are hereby repealed or amended accordingly.  
  
Sec. 13. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.   
  
Approved,