HB2641 - AN ACT FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8525, OTHERWISE KNOWN AS THE "ADOPT-A-SCHOOL ACT OF 1998"

Republic Act No. 8525, or the Adopt-A-School Act of 1998, opened the door for private individuals and enterprises to partner with public schools in addressing chronic shortages in classrooms, facilities, instructional materials, and teacher development. Twenty-seven years later, program reviews reveal that the promise of this landmark statute remains largely untapped. The Second Congressional Commission on Education (EDCOM 2) reports that since 1996 no private organization has successfully claimed the tax incentives provided under the law, and between 2018 and 2025 the Department of Education endorsed only 476 applications for tax endorsement, none of which resulted in an approved tax deduction with the Bureau of Internal Revenue. During the same period the education sector's resource gaps have widened. As of January 2025 the Department of Education estimates a shortage of more than 165,000 classrooms, with overcrowding forcing shifts in nearly one-half of all public elementary and secondary schools. Approximately 1,500 last-mile schools operate without electricity, and nearly 1,000 still lack functional toilets. Only 1.8 percent of public schools enjoy stable Wi-Fi connectivity, while many government-procured computers remain outdated or undelivered, limiting the nation's capacity for digital learning. In the Senate, Senator Paolo Benigno "Bam" Aquino IV has filed a bill to modernize and expand the Adopt-A-School framework. Guided by the spirit and substantive proposals of his measure, this counterpart House Bill seeks to align private-sector incentives with today's urgent needs and streamline the administrative path from donor intent to classroom impact. It broadens the scope of eligible beneficiaries to include early childhood centers, alternative learning systems, technical-vocational institutions, and state universities. It rationalizes and enhances deductions, introduces payroll credits for enterprises employing public senior high-school graduates, and exempts qualified donations from customs duties and value-added tax. To ensure ease of participation and transparency, the bill establishes an Adopt-A-School One-Stop Shop and online portal that consolidates application, endorsement, and reporting processes across government agencies. It likewise creates a stronger coordinating council composed of education, finance, trade, and labor agencies together with a reputable business-sector representative, tasked to conduct periodic reviews, publish program data, and recommend policy adjustments. By reinforcing public-private collaboration, sharpening fiscal incentives, and removing bureaucratic hurdles, this measure empowers every Filipino and every enterprise to help build classrooms, upgrade laboratories, modernize digital infrastructure, strengthen teacher capacity, and nourish learners in the country's most underserved communities. Its passage will unlock much-needed resources that Government alone cannot supply, and will give real substance to the constitutional mandate that the State shall assign the highest budgetary priority to education. For further reading: https://docs.congress.hrep.online/legisdocs/basic_20/HB02641.pdf https://www.congress.gov.ph/house-members/view/?member=L031&name=DIMAGUILA%2C+WALFREDO+%22ARMAN%22+R.%2C+JR.&page=0

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