SEF Allowable Expenses, Law by Law: 1968 to 2025

The Special Education Fund (SEF) may pay only for what a law opens it to. Section 272 of Republic Act No. 7160, the Local Government Code of 1991, names six purposes: the operation and maintenance of public schools, the construction and repair of school buildings, facilities and equipment, educational research, the purchase of books and periodicals, and sports development. Seven later laws added early childhood care, feeding, the Alternative Learning System (ALS), learners with disabilities, parent effectiveness sessions and ARAL tutors.

The list a Local School Board (LSB) actually works from is a joint circular. Until the 2025 circular took effect, it was DepEd-DBM-DILG Joint Circular No. 1, s. 2017 and its two addenda of 2020. Joint Circular No. 01, s. 2025 of DepEd, the Department of Budget and Management (DBM), the Department of the Interior and Local Government (DILG) and the Department of Finance (DOF), the Omnibus Guidelines on the Use of the Special Education Fund, repealed all three and put one list in their place, Annex C.

Set side by side, the old lists and Annex C hold 78 items. Thirty-six are new, fifteen changed their wording, twenty-three are the same, and four pandemic items are gone. How the fund is raised, how unequal it is and how boards spend it are in Local School Boards and the Special Education Fund.

Key findings

• The Code names six purposes, and a board may spend on nothing else unless a law says so. The proceeds “shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the Local School Board” (Republic Act No. 7160, Sec. 272).
• The Supreme Court read the list strictly in 2001. Salaries of teachers hired for extension classes may be charged to the fund; college scholarship grants may not, because the Code left scholarships out (Commission on Audit of the Province of Cebu v. Province of Cebu, G.R. No. 141386, November 29, 2001, En Banc).
• Seven laws from 2013 to 2025 name the fund for new purposes. Two of them do so “Notwithstanding the provisions of Sections 235 and 272” of the Code: the ALS Act and the law on learners with disabilities (Republic Act No. 11510, Sec. 18; Republic Act No. 11650, Sec. 24(g)).
• Annex C of the 2025 circular is the working list. “All expenditure items to be included in the SEF Budget shall be among those provided under Annex C thereof and contained in the approved SIP and DEDP” (Joint Circular No. 01, s. 2025, Sec. 6.3.1).
• Thirty-six items are new to the list. They include eleven for ALS, four for learners with disabilities, school counselors, libraries and dormitories, CCTV, furniture, service vehicles, and the pay of ARAL para-teachers (Annex C).
• Four items of October 2020 are no longer listed: protective equipment, thermal scanners, vaccines, vitamins and food supplements, and psychosocial first aid and check-ups (Joint Circular No. 2, s. 2020, Secs. 2.1.8.1 to 2.1.8.3 and 2.1.8.5).
• Scouting, campus journalism, Parents-Teachers Association activities and student government are no longer named. The 2020 item that listed them is now “co-curricular and other learner support activities” under DepEd issuances (Joint Circular No. 1, s. 2020, Sec. 1.2.2; Annex C, Operation and maintenance, item 13).

What the SEF may pay for: the list before and after the 2025 circular

The ledger holds every item of the 2017 circular, its two 2020 addenda and Annex C of the 2025 circular, under the headings of Annex C. Search it for an expense, or filter it by what happened to each item.

Ledger

What the SEF may pay for, before and after the 2025 circular

Of the 78 items on the two lists, 36 are new in the 2025 circular, 15 changed their wording, 23 stayed the same and 4 are no longer listed.

Find an expense

All 78New in 2025 36Changed 15Same 23No longer listed 4

Play the change

Four steps: the old list, what left it, what changed, and what is new.

78 of 78 items shown.

Early childhood care and development

7 items, 2 new

Republic Act No. 12199, Sec. 7(b)

• Pay of Child Development Teachers and Day Care WorkersSame

  Before

  Direct services related to the implementation of the ECCD program, such as salaries/allowances of locally-hired Child Development Teachers and/or Day Care Workers.

  JC No. 1, s. 2017, Sec. 4.1.7.1

  Now

  Direct services related to the implementation of the ECCD program, such as salaries/allowances of locally-hired Child Development Teachers and/or Day Care Workers.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 1

• Parent cooperatives for community-based ECCDSame

  Before

  Organization and support of parent cooperatives to establish community-based ECCD programs.

  JC No. 1, s. 2017, Sec. 4.1.7.2

  Now

  Organization and support of parent cooperatives to establish community-based ECCD programs.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 2

• Training of ECCD service providersSame

  Before

  Provision of counterpart funds for the continuing professional development of ECCD public service providers.

  JC No. 1, s. 2017, Sec. 4.1.7.3

  Now

  Provision of counterpart funds for the continuing professional development of ECCD public service providers.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 3

• Facilities for ECCD programsSame

  Before

  Provision of facilities for the conduct of the ECCD Program.

  JC No. 1, s. 2017, Sec. 4.1.7.4

  Now

  Provision of facilities for the conduct of the ECCD programs.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 4

• Child Development Centers: setting up, converting and running themChanged

  Before

  Payment of expenses pertaining to the operations of National Child Development Centers, including, but not limited to, utilities and communication.

  JC No. 1, s. 2017, Sec. 4.1.7.5

  Now

  Payment of expenses pertaining to the establishment, conversion, and operation of Child Development Centers, including, but not limited to utilities and communication.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 5

  The old item paid only for operating National Child Development Centers. The new one also pays to establish and convert centers, and covers any Child Development Center.

• Home-based, community-based and voucher ECCDNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Payment of expenses pertaining to the implementation of Alternative Delivery Modes (home-based, community-based, private vouchers, among others), consistent with guidelines issued by the ECCD Council.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 6

• Early identification and intervention for children with disabilities below fiveNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Payment related to the establishment of early identification, prevention, referral, and intervention for learners with disabilities below age five.

  JC No. 01, s. 2025, Annex C, ECCD Program, item 7

National Feeding Program

8 items

Republic Act No. 11037, Sec. 7

• Supplemental feeding of day care childrenChanged

  Before

  Supplemental Feeding Program for Day Care Children.

  JC No. 1, s. 2020, Sec. 1.1.1

  Now

  Supplemental Feeding Program for day care children and those in Supervised Neighborhood Play (SNP).

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 1

  Children in Supervised Neighborhood Play are added.

• School-Based Feeding ProgramSame

  Before

  School-Based Feeding Program.

  JC No. 1, s. 2020, Sec. 1.1.2

  Now

  School-Based Feeding Program.

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 2

• Milk Feeding ProgramSame

  Before

  Milk Feeding Program.

  JC No. 1, s. 2020, Sec. 1.1.3

  Now

  Milk Feeding Program.

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 3

• Micronutrient supplementsSame

  Before

  Micronutrient Supplements.

  JC No. 1, s. 2020, Sec. 1.1.4

  Now

  Micronutrient Supplements.

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 4

• Health examination, vaccination and dewormingSame

  Before

  Health Examination, Vaccination, and Deworming.

  JC No. 1, s. 2020, Sec. 1.1.5

  Now

  Health Examination, Vaccination, and Deworming.

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 5

• Gulayan sa Paaralan (school gardens)Same

  Before

  Gulayan sa Paaralan.

  JC No. 1, s. 2020, Sec. 1.1.6

  Now

  Gulayan sa Paaralan.

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 6

• Water, sanitation and hygiene (WASH)Same

  Before

  Water, Sanitation, and Hygiene (WASH).

  JC No. 1, s. 2020, Sec. 1.1.7

  Now

  Water, Sanitation, and Hygiene (WASH).

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 7

• Nutrition education and social mobilizationSame

  Before

  Integrated Nutrition Education, Behavioral Transformation, and Social Mobilization.

  JC No. 1, s. 2020, Sec. 1.1.8

  Now

  Integrated Nutrition Education, Behavioral Transformation, and Social Mobilization.

  JC No. 01, s. 2025, Annex C, National Feeding Program, item 8

Operation and maintenance of public schools

25 items, 6 new

Republic Act No. 7160, Sec. 272

• Non-formal, special education, senior high, open high school and madrasah classesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Non-formal education programs; Special Education; Senior High School; Open High School program; Madrasah classes.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 1 to 5

• Remedial classes and teachers' competency trainingNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Remedial classes including the payment of salaries, authorized allowances, and other benefits of locally-hired teaching and non-teaching personnel of the program, and the conduct of teachers' competency training.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 6

• Locally hired teachers where DepEd finds a shortageChanged

  Before

  Payment of compensation/allowances of teachers locally-hired in elementary and secondary schools identified to have shortages per the teacher deployment analysis of DepEd; the rates of compensation/allowances shall be determined by the LSB based on funds available, but not to exceed the salary schedule being implemented by the local government unit (LGU) concerned: Provided, that for the purpose of hiring teachers chargeable against the SEF, the LSB in each province, city or municipality shall utilize the list found in the Registry of Qualified Applicants (RQA).

  JC No. 1, s. 2017, Sec. 4.1.1.1

  Now

  Payment of compensation/allowances of teachers locally-hired in elementary and secondary schools/community learning center identified to have shortages per the teacher deployment analysis of DepEd.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 7

  Community learning centers are added. The rule that the LSB hire from DepEd's Registry of Qualified Applicants is not repeated; the cap at the LGU's salary schedule moves to item 19.

• Honoraria of tutors and learning facilitatorsChanged

  Before

  Payment of honoraria and allowances of locally-hired personnel, trained and qualified tutors or learning facilitators.

  JC No. 2, s. 2020, Sec. 2.1.5

  Now

  Payment of the honoraria and allowances of locally-hired personnel, trained and qualified tutors, or learning facilitators, in accordance with relevant laws, rules, regulations, and issuances.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 8

  The new item adds that the pay follows relevant laws, rules, regulations and issuances.

• Utility workers and security guardsSame

  Before

  Payment of salaries/wages of utility workers and security guards hired in public elementary and secondary schools which have not been provided such position in the DepEd budget.

  JC No. 1, s. 2017, Sec. 4.1.1.2

  Now

  Payment of salaries/wages of utility workers and security guards hired in public elementary and secondary schools which have not been provided such position in the DepEd budget.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 9

• Local allowances for DepEd's own teachers and staffNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Any additional authorized allowances granted by LGUs to nationally-hired teaching and non-teaching personnel chargeable against the SEF as of 31 December 1997, provided, that such additional authorized allowances granted thereafter shall be charged to the General Fund, provided, further, that in case of fourth (4th) and fifth (5th) class municipalities, such additional authorized allowances may still be charged to SEF so long as the same does not exceed ten percent (10%) thereof, subject to existing budgeting rules and regulations.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 10

• Utilities and other costs of operating schoolsChanged

  Before

  Payment of expenses pertaining to the operation of schools, which may include utilities and communication expenses.

  JC No. 1, s. 2017, Sec. 4.1.1.3

  Now

  Payment of expenses pertaining to the operation of schools, including, but not limited to, utilities.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 11

  Communication expenses are no longer named here; they are item 16.

• School doctors, nurses, dentists and dental aidesChanged

  Before

  Payment of compensation/allowances of locally-hired dentists and/or dental aide positions to serve in public elementary and secondary schools.

  JC No. 1, s. 2020, Sec. 1.2.1

  Now

  Payment of compensation/allowances of locally-hired school-based health personnel, such as, but not limited to, doctors, nurses, dentists and/or dental aide positions.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 12(a)

  The old item named dentists and dental aides only. The new one covers school-based health personnel in general and names doctors and nurses.

• School counselors and counselor associatesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Payment of school counselors, school counselor associates, related support personnel.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 12(b)

• Professionals on an Inclusive Learning Resource Center teamNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Payment of professionals who may serve as members of the Inclusive Learning Resource Center-Multidisciplinary Team.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 12(c)

• Medical, dental, nursing and counseling suppliesChanged

  Before

  Payment of dental supplies and other related expenses pertaining to the operation of dental facilities in public elementary and secondary schools.

  JC No. 1, s. 2020, Sec. 1.2.3

  Now

  Payment of supplies necessary for the delivery of medical, dental, nursing, nutrition, mental health, guidance and counseling, and other school-based health services and other related expenses pertaining to the operations of the facilities for the delivery of such services.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 12(d)

  The old item covered dental supplies only.

• Clinics, wash areas, kitchens, canteens, gardens and care centersChanged

  Before

  Establishment of dental facilities and acquisition of apparatus and/or equipment; installation of health areas or facilities such as, but not limited to, school clinics and wash areas.

  JC No. 1, s. 2020, Sec. 1.2.4; JC No. 2, s. 2020, Sec. 2.2.1

  Now

  Establishment and maintenance of health-related facilities, such as, but is not limited to, wash areas, clinics, central kitchens, canteens, school gardens, facilities for information and service referral for responsible parenthood and reproductive health concerns, care centers (formerly guidance offices) and inclusive learning resource centers (formerly SPED Centers), and acquisition of apparatus and/or equipment.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 12(e)

  Central kitchens, canteens, school gardens, referral facilities, care centers and inclusive learning resource centers are named for the first time, and maintenance is added.

• First aid kits, medicines, soap, sanitizer and feminine hygiene productsChanged

  Before

  Hand sanitizers, alcohol, disinfectants, anti-bacterial or germicidal soaps, cleaning equipment, bleach, foot bath.

  JC No. 2, s. 2020, Sec. 2.1.8.4

  Now

  Provision of basic first aid kits and personal hygiene supplies, including medicines, antibacterial soaps, hand sanitizers, and feminine hygiene products.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 12(f)

  First aid kits, medicines and feminine hygiene products are named for the first time. Alcohol, disinfectants, cleaning equipment, bleach and foot baths are no longer named.

• Vaccines, vitamins and food supplementsNo longer listed

  Before

  Vaccines, vitamins and minerals; and food supplements.

  JC No. 2, s. 2020, Sec. 2.1.8.3

  Now

  Not listed in Annex C.

  A pandemic item of October 2020. Annex C does not list it here; micronutrient supplements and vaccination remain under the National Feeding Program (items 4 and 5).

• Face masks, face shields and other protective equipmentNo longer listed

  Before

  Personal protective equipment such as, but not limited to, facemasks, face shields, hand gloves, surgical caps, hats, eye goggles, and hazmat suits.

  JC No. 2, s. 2020, Sec. 2.1.8.1

  Now

  Not listed in Annex C.

  A pandemic item of October 2020. Annex C does not list it.

• Thermal scanners and digital thermometersNo longer listed

  Before

  Medical devices such as, but not limited to, thermal/temperature scanners, and digital thermometers.

  JC No. 2, s. 2020, Sec. 2.1.8.2

  Now

  Not listed in Annex C.

  A pandemic item of October 2020. Annex C does not list it by name.

• Psychosocial first aid and check-ups for personnel and learnersNo longer listed

  Before

  Psychosocial first aid, mental and physical examination or check-up for teaching and non-teaching personnel and learners, and medical doctors' consultation.

  JC No. 2, s. 2020, Sec. 2.1.8.5

  Now

  Not listed in Annex C.

  Annex C does not repeat this item. It pays instead for school-based health personnel, counselors and the supplies of school health services (items 12(a), 12(b) and 12(d)).

• Co-curricular and learner support activitiesChanged

  Before

  Scouting activities of the Boy Scouts of the Philippines and the Girl Scouts of the Philippines, programs to promote campus journalism, Parents-Teachers Association activities, Student Council Government Activities, and other extra-curricular activities that promote leadership and values as may be provided under the corresponding DepEd issuances.

  JC No. 1, s. 2020, Sec. 1.2.2

  Now

  Payment of expenses related to the conduct of co-curricular and other learner support activities that promote holistic learner development and well-being, leadership, and values as may be provided under the corresponding DepEd issuances.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 13

  The new item no longer names scouting, campus journalism, Parents-Teachers Association activities or student government. It covers activities for learners that a DepEd issuance provides for.

• Printing and buying learning materialsSame

  Before

  Payment of costs and expenses in connection with the acquisition, production, reproduction, and printing of learning materials for the learners such as self-learning modules, textbooks, activity sheets, and study guides/manuals approved by DepEd.

  JC No. 2, s. 2020, Sec. 2.1.1

  Now

  Payment of costs and expenses in connection with the acquisition, production, reproduction, and printing of learning materials for the learners such as self-learning modules, textbooks, activity sheets, and study guides/manuals approved by DepEd.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 14

• USB drives and other external storageSame

  Before

  Purchase of external storage devices (compact disc/digital versatile disc, USB storage, and hard drive).

  JC No. 2, s. 2020, Sec. 2.1.2

  Now

  Purchase of external storage devices (compact disc/digital versatile disc, USB storage, and hard drive).

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 15

• Phone, mobile load and Wi-FiSame

  Before

  Communication expenses such as, but not limited to, landline phone for communication, load (call, text, and data) for mobile phone communication and Wi-Fi connection.

  JC No. 2, s. 2020, Sec. 2.1.3

  Now

  Communication expenses such as, but not limited to, landline phone communication, load (call, text, and data) for mobile phone communication and Wi-Fi connection.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 16

• Videoconferencing subscriptionsSame

  Before

  Payment of subscription fee for videoconferencing or remote communication tools/applications or platforms.

  JC No. 2, s. 2020, Sec. 2.1.4

  Now

  Payment of subscription fee for videoconferencing or remote communication tools/applications or platforms.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 17

• Voluntary contributions that a law authorizesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Payment of voluntary contributions authorized under existing laws.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 18

• Pay, training and benchmarking of locally hired personnelChanged

  Before

  Training/webinars for teaching and non-teaching personnel, school leaders, parents, learning facilitators, and community education volunteers.

  JC No. 2, s. 2020, Sec. 2.1.6

  Now

  Payment of compensation and authorized allowances, competency trainings, benchmarking, and other benefits of locally-hired teaching and non-teaching personnel, provided, that the rates of compensation and authorized allowances of locally-hired teaching and non-teaching personnel shall be determined by the LSB based on funds available, but at rates not to exceed the salary schedule being implemented by the LGU concerned.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 19

  The old item paid for training and webinars for teaching and non-teaching personnel, school leaders, parents, learning facilitators and community education volunteers. The new one pays locally hired teaching and non-teaching personnel and their competency training and benchmarking. Other training is in item 6, ECCD item 3, ALS item 5 and Learners with Disabilities item 2.

• Delivering and collecting learning materialsSame

  Before

  Payment of cost and expenses in the distribution and retrieval of learning materials for the learners such as, but not limited to, transportation expenses of DepEd personnel, and shipment, delivery, and courier services.

  JC No. 2, s. 2020, Sec. 2.1.7

  Now

  Payment of cost and expenses in the distribution and retrieval of learning materials for the learners such as, but not limited to, transportation expenses of DepEd personnel, and shipment, delivery, and courier services.

  JC No. 01, s. 2025, Annex C, Operation and maintenance of public schools, item 20

Construction and repair of school buildings

3 items, 1 new

Republic Act No. 7160, Secs. 100(c) and 272

• Classrooms and other school buildings where DepEd finds a shortageChanged

  Before

  Construction, repair and maintenance of school buildings and other facilities for public elementary and secondary schools, which are deemed to have shortage of classrooms or of other facilities, per DepEd classroom deployment analysis; this item shall be given priority in the SEF Budget.

  JC No. 1, s. 2017, Sec. 4.1.2.1

  Now

  Construction, repair, and maintenance of school buildings, and other facilities for public elementary and secondary schools, which are deemed to have shortage of classrooms or of other facilities, per DepEd classroom deployment and learner support facility analysis.

  JC No. 01, s. 2025, Annex C, Construction and repair of school buildings, item 1

  DepEd's learner support facility analysis is added as a basis. The sentence giving this item priority in the SEF Budget is not repeated in Annex C; the Code's own priority for school buildings stands (Sec. 100(c)).

• Learning centers, libraries and school dormitoriesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Construction and repair of learning centers, libraries, and school dormitories.

  JC No. 01, s. 2025, Annex C, Construction and repair of school buildings, item 2

• Buying and titling school sitesChanged

  Before

  Acquisition and titling of school sites.

  JC No. 1, s. 2017, Sec. 4.1.2.2

  Now

  Acquisition and titling of school sites or lands.

  JC No. 01, s. 2025, Annex C, Construction and repair of school buildings, item 3

  Lands are added.

Facilities and equipment

9 items, 4 new

Republic Act No. 7160, Sec. 272

• Laboratory, technical and information technology equipmentSame

  Before

  Acquisition of laboratory, technical and similar apparatus, and information technology equipment and corollary supporting services (e.g. internet connection, maintenance, etc.), subject to the prevailing requirements and specifications set by the DepEd.

  JC No. 1, s. 2017, Sec. 4.1.3.1

  Now

  Laboratory, technical and similar apparatus, and information technology equipment, and corollary supporting services (e.g., internet connection maintenance, etc.), subject to the prevailing requirements and specifications set by the DepEd.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 1

• Computers, laptops, tablets and smartphonesSame

  Before

  Personal computer, laptop computer, tablet, notebook, and smartphone.

  JC No. 2, s. 2020, Sec. 2.3.1

  Now

  Personal computer, laptop computer, tablet, notebook, and smartphone.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 1(a)

• Printers, scanners and photocopiersSame

  Before

  Printer, scanner, photocopying machine, and other printing or photocopying equipment and their consumables.

  JC No. 2, s. 2020, Sec. 2.3.2

  Now

  Printer, scanner, photocopying machine, and other printing or photocopying equipment and their consumables.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 1(b)

• Television sets and radiosSame

  Before

  Television set, antenna/cable satellite connection, radio with AM/FM channel, two-way radio for remote/off the grid areas.

  JC No. 2, s. 2020, Sec. 2.3.3

  Now

  Television set, antenna/cable satellite connection, radio with AM/FM channel, two-way radio for remote/off-grid areas.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 1(c)

• Radio frequency identification (RFID) systemNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Radio Frequency Identification (RFID) System.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 2

• Closed-circuit television (CCTV)New in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Closed-Circuit Television (CCTV).

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 3

• Batteries and solar panelsSame

  Before

  Primary and secondary batteries, car battery, and solar panel.

  JC No. 2, s. 2020, Sec. 2.3.4

  Now

  Primary and secondary batteries, car battery, and solar panel.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 4

• Furniture and fixturesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Furniture and fixtures.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 5

• Service vehiclesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Purchase and maintenance of service vehicles.

  JC No. 01, s. 2025, Annex C, Facilities and equipment, item 5

Alternative Learning System

11 items, all new

Republic Act No. 11510, Sec. 18

• Literacy mappingNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Enhancement of literacy mapping.

  JC No. 01, s. 2025, Annex C, ALS, item 1

• Finding and enrolling ALS learnersNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Identification and mobilization of prospective ALS learners.

  JC No. 01, s. 2025, Annex C, ALS, item 2

• Community Learning CentersNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Development and maintenance of conducive learning environment (e.g. CLCs).

  JC No. 01, s. 2025, Annex C, ALS, item 3

• Transportation, meals and allowances of ALS learnersNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Provision of support services to ALS learners (e.g., transportation, meals, allowances).

  JC No. 01, s. 2025, Annex C, ALS, item 4

• Training of ALS teachers and learnersNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Capacity-building activities for ALS teachers and learners.

  JC No. 01, s. 2025, Annex C, ALS, item 5

• ALS teaching and learning supplies and equipmentNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Provision of teaching and learning supplies and equipment.

  JC No. 01, s. 2025, Annex C, ALS, item 6

• Printing ALS learning resourcesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Printing and reproduction of ALS learning resources.

  JC No. 01, s. 2025, Annex C, ALS, item 7

• Community ALS ImplementorsNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Hiring of Community ALS Implementors.

  JC No. 01, s. 2025, Annex C, ALS, item 8

• ALS post-program activitiesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Support for post-program activities.

  JC No. 01, s. 2025, Annex C, ALS, item 9

• Local ALS innovationsNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Introduction of local innovations.

  JC No. 01, s. 2025, Annex C, ALS, item 10

• Other ALS activities DepEd authorizesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Other activities related to ALS implementation may be authorized by DepEd.

  JC No. 01, s. 2025, Annex C, ALS, item 11

Learners with disabilities

4 items, all new

Republic Act No. 11650, Sec. 24(g)

• Sites, buildings or centers for learners with disabilitiesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Provision of sites, buildings, or centers where there are no existing school facilities that may be used.

  JC No. 01, s. 2025, Annex C, Learners with Disabilities, item 1

• Assistive devices, instructional materials and teacher trainingNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Provision of assistive devices, instructional materials, and teacher's training.

  JC No. 01, s. 2025, Annex C, Learners with Disabilities, item 2

• Health, nutrition and educational assessment for learners with disabilitiesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Delivery of health and nutrition services and interventions and educational assessment programs for learners with disabilities in their respective localities that shall be initiated by the DOH and DepEd, respectively.

  JC No. 01, s. 2025, Annex C, Learners with Disabilities, item 3

• Livelihood and entrepreneurial training for learners with disabilitiesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Provision of training on livelihood and entrepreneurial skills, in coordination with DOLE and TESDA.

  JC No. 01, s. 2025, Annex C, Learners with Disabilities, item 4

Educational research

2 items, 1 new

Republic Act No. 7160, Sec. 272

• Educational research DepEd's budget does not fundSame

  Before

  Educational research other than the research subject areas funded in the DepEd budget, subject to the prevailing policies and guidelines of the DepEd.

  JC No. 1, s. 2017, Sec. 4.1.4.1

  Now

  Educational research other than research subject areas funded in the DepEd budget, subject to the prevailing policies and guidelines of the DepEd.

  JC No. 01, s. 2025, Annex C, Educational research, item 1

• Information and behavior change materials for schoolsNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Printing of IEC (Information, Education, and Communication) Materials or Social Behavioral Change Materials to be displayed in schools and distributed to learners, parents, and school personnel, particularly in hard-to-reach areas.

  JC No. 01, s. 2025, Annex C, Educational research, item 2

Books and periodicals

1 item

Republic Act No. 7160, Sec. 272

• Library books, textbooks, workbooks, software and online subscriptionsChanged

  Before

  Purchase of library books and periodicals for the libraries of the different elementary and secondary schools, and purchase of instructional materials, workbooks and textbooks needed by public elementary and secondary schools, subject to the prevailing policies and guidelines of the DepEd.

  JC No. 1, s. 2017, Sec. 4.1.5.1

  Now

  Purchase of library books and periodicals for the libraries of the different elementary and secondary schools, and purchase of instructional materials, workbooks, textbooks, online resources, software, and other similar subscriptions to support teaching and learning needed by public elementary and secondary schools, subject to the prevailing policies and guidelines of the DepEd.

  JC No. 01, s. 2025, Annex C, Purchase of books and periodicals, item 1

  Online resources, software and similar subscriptions are added.

Sports development

3 items, 2 new

Republic Act No. 7160, Secs. 100(c) and 272

• School sports activities and sports clubsChanged

  Before

  Expenses for school sports activities at the national, regional, division, district, municipal and barangay levels, as well as for other DepEd related activities, subject to the prevailing requirements and specifications set by the DepEd.

  JC No. 1, s. 2017, Sec. 4.1.6.1

  Now

  Expenses for school sports activities at the national, regional, division, district, municipal, and barangay levels, including sports clubs activities, as well as for other DepEd-related activities, subject to the prevailing requirements and specifications set by the DepEd.

  JC No. 01, s. 2025, Annex C, Sports development, item 1

  Sports clubs activities are added.

• Gymnasiums and sports areasNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Construction, repair, and maintenance of sports facilities such as gymnasiums and sports areas, and other facilities for public elementary and secondary schools, which are deemed to have shortage of facilities, per DepEd learner support facility analysis.

  JC No. 01, s. 2025, Annex C, Sports development, item 2

• Sports supplies and equipmentNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Expenses for sports supplies and equipment under the Sports Supplies Equipment Enhancement and Distribution (SSEED) Program.

  JC No. 01, s. 2025, Annex C, Sports development, item 3

Parent Effectiveness Service Program

2 items, all new

Republic Act No. 11908, Sec. 12

• Parent effectiveness sessionsNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Conduct of parent effectiveness sessions.

  JC No. 01, s. 2025, Annex C, PES Program, item 1

• Parent effectiveness modules and materialsNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Production and distribution [of] PES Module Manuals and IEC (Information, Education, and Communication) Materials to parents and guardians.

  JC No. 01, s. 2025, Annex C, PES Program, item 2

ARAL Program

2 items, all new

Republic Act No. 12028, Sec. 13

• Pay of para-teachers who tutor under ARALNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Remuneration of para-teachers who serve as tutors.

  JC No. 01, s. 2025, Annex C, ARAL Program, item 1

• Data plans for ARAL para-teachers and pre-service teachersNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  Payment of expenses on data plans and communication expenses to para teachers and pre-service teachers.

  JC No. 01, s. 2025, Annex C, ARAL Program, item 2

Loans

1 item, all new

Joint Circular No. 01, s. 2025, Annex C

• Collateral for, or payment of, a loan for educational expensesNew in 2025

  Before

  Not on the 2017 or 2020 lists.

  Now

  The SEF may also be used as collateral or as a payment loan, provided that the loan is intended for educational expenses as enumerated in this JC and provided further that the LSB has passed a resolution authorizing its use for this purpose.

  JC No. 01, s. 2025, Annex C, closing paragraph

DepEd-DBM-DILG Joint Circular No. 1, s. 2017, Sec. 4.0; Joint Circulars No. 1 and No. 2, s. 2020; DepEd-DBM-DILG-DOF Joint Circular No. 01, s. 2025, Annex C

An item on the list is not yet an item a board may fund. Three conditions sit on top of Annex C:

• National funds first. “Only those expenditure items that are not adequately funded by the DepEd, ECCD Council, DSWD, DOH, NNC, and other government agencies shall be charged against the SEF” (Sec. 7.1).
• The school’s plan. The item must also be in the approved School Improvement Plan (SIP) and Division Education Development Plan (DEDP) (Sec. 6.3.1).
• The usual rules. Spending follows “existing budgeting, accounting, and auditing rules and regulations”, and procurement follows Republic Act No. 12009, the New Government Procurement Act (Secs. 8.3 and 8.4).

The SEF’s allowable uses, law by law

Table 1. The laws and one decision that set what the Special Education Fund may pay for

1968 to 1991: from eleven activities to six purposes

Republic Act No. 5447 created the fund on September 25, 1968, to be “expended exclusively for the following activities of the Department of Education”. There were eleven, lettered (a) to (k): extension classes; elementary school buildings and sites; the payment and adjustment of public school teachers’ salaries; textbooks, teachers’ guides and forms; equipment for vocational courses; a printing plant; teaching materials; citizenship development in barrio high schools and adult classes; education research; government scholarships “to poor but deserving students”; and “the promotion of physical education, such as athletic meets” (Sec. 1).

Executive Order No. 189 of June 10, 1987 used the fund to put public high school teachers on the national payroll. The salaries and allowances of public secondary school teachers were to be taken from the SEF and other funds, and “Starting July 1, 1987, 80 percent of all collections accruing to the Special Education Funds shall be remitted immediately to the National Treasury” (Secs. 4 and 5).

The Local Government Code reversed the flow and shortened the list. The proceeds of the additional 1 percent real property tax “shall be automatically released to the local school boards”, to be allocated for the six purposes of Section 272. Section 100(c) tells the board what to put first: school buildings and other facilities of public elementary and secondary schools, “extension classes where necessary”, and sports activities at the division, district, municipal and barangay levels. The Code’s list is shorter than the 1968 one. It has no words for the payment of teachers’ salaries, the printing plant, citizenship development or scholarships. How Philippine Education Became Centralized, 1901-2001 follows the fund’s place in the wider history.

2001: what the Supreme Court read into the six purposes

Two of those gaps reached the Supreme Court. The Province of Cebu had charged to its SEF the salaries of teachers it hired for extension classes and the cost of college scholarship grants. The provincial auditor suspended both. In Commission on Audit of the Province of Cebu v. Province of Cebu, G.R. No. 141386, decided on November 29, 2001, the Court En Banc split the two:

• Teachers’ salaries for extension classes: chargeable. “the allocation of the SEF for the establishment and maintenance of extension classes logically implies the hiring of teachers who should, as a matter of course be compensated for their services.”
• College scholarship grants: not chargeable. “the ‘granting of government scholarship to poor but deserving students’ was omitted in Sections 100 (c) and 272 of the Local Government Code”, and “the grant of scholarship is neither necessary nor indispensable to the operation and maintenance of public schools. Instead, such scholarship grants may be charged to the General Funds of the province.”

The Court also held that the Code expressly repealed only Section 3 of Republic Act No. 5447, so the 1968 provision on teachers’ salaries, “not inconsistent with Sections 272 and 100 (c)”, remains in force. And it limited the ruling to teachers appointed for extension classes: “not every kind of personnel-related benefits of public school teachers may be charged to the SEF.”

The decision sets the test that every later item answers to. An expense is allowable when a law names it or when it is necessary to something a law names. Where Congress left a purpose out, neither a board nor a circular can put it back.

2013 to 2025: the laws that widened the fund

Congress, then, did the widening. Each of these laws names the fund:

• Early childhood care. Republic Act No. 10410, the Early Years Act of 2013, required that local governments “shall include allocations from their Special Education Fund (SEF) and Gender and Development (GAD) Fund in addition to other local funds” for four purposes: their ECCD Program, parent cooperatives, counterpart funds for training ECCD service providers, and facilities (Sec. 7(b)). Republic Act No. 12199, the ECCD System Act of May 8, 2025, repealed that Act and kept the duty (Sec. 7(b)). It added that the personal services limits of the Code “shall not be applicable to the expenses appropriated for the compensation of CDTs and CDWs”, the Child Development Teachers and Workers (Sec. 19).
• Feeding. Under Republic Act No. 11037, approved June 20, 2018, local governments “shall be authorized to use a portion of the Special Education Fund (SEF) and/or their twenty percent (20%) development fund” to augment the National Feeding Program’s appropriations (Sec. 7).
• ALS. Republic Act No. 11510, approved December 23, 2020: “Notwithstanding the provisions of Sections 235 and 272 of the Local Government Code of 1991, the Local School Board shall be authorized to set aside a portion of the proceeds of the Special Education Fund for the delivery of ALS programs”, including “the hiring of additional Community ALS Implementors” (Sec. 18).
• Learners with disabilities. Republic Act No. 11650, approved March 11, 2022, uses the same words to let boards “supplement the funds of the DepEd and other implementing partner agencies for the delivery of support and related services for learners with disabilities” (Sec. 24(g)).
• Parent effectiveness. Republic Act No. 11908, which lapsed into law on July 28, 2022, charges “The costs for conducting the parent effectiveness sessions and other expenses relevant thereto” to “the respective appropriations of the cities and municipalities or the Special Education Fund, as the case may be” (Sec. 12).
• ARAL. Under Republic Act No. 12028, approved October 16, 2024, para-teachers who serve as tutors “shall be compensated from the budget of the DepEd or the Special Education Fund (SEF) of the Local School Board” of the local government where the learners’ schools are (Sec. 13).

One law is cited for the fund without naming it. Republic Act No. 10665, the Open High School System Act of 2015, says community advisers and source persons “shall be hired by the LGU and shall receive honoraria, to be arranged with the local school board” (Sec. 9). The same section adds that, once Senior High School is fully in place, the DepEd division “shall be responsible in hiring the Source Persons and in giving their compensation.” The 2025 circular lists it among its legal bases (Sec. 3.5) and puts the “Open High School program” in Annex C.

A 2025 study for the Second Congressional Commission on Education (EDCOM II) by Laguda, Aquino, Cangayao and Tagle found the same pattern from the other side. Boards and auditors disagreed on what the fund could carry, and “a school reading program might be classified as ‘educational research’ because that is the expenditure category recognized in the current guidelines” (p. 32). The study’s Table 3 lists two laws and two circulars as the widening so far, and proposes that the three departments “study its legal position on whether the SEF may be legally used for purposes outside of the express listing in R.A. No. 7160” (pp. 33 and 34).

The joint circulars of 2017, 2020 and 2025

The Code’s six purposes are short phrases. Since at least 1998 the departments have spelled them out in joint circulars, which is where a board finds out whether the fund may pay a security guard or buy a laptop.

Table 2. The joint circulars on the use of the Special Education Fund since 2017

The 2017 circular was issued to schools through DepEd Order No. 10, s. 2017. It updated “JC No. 1 s. 1998, JC No. 1-A s. 2000, JC No. 1-B s. 2001 and JC No. 4 s. 2001” (Sec. 2.1). The first addendum of 2020 was issued “In view of the passage of” Republic Act No. 11037 (Sec. 1.0), and the second after DepEd adopted its Basic Education Learning Continuity Plan for School Year 2020-2021 (Sec. 1.0).

EDCOM II’s Final Report records that “ON DECEMBER 3, 2025, THE REVISED SEF GUIDELINES JOINT CIRCULAR WAS SIGNED BY DEPED, DBM, DILG, AND DOF” (p. 368). The circular “repeals the policies and guidelines outlined in previous JCs issued by DepEd, DBM, and DILG (JC No. 1, s. 2017, and JC Nos. 1 and 2, s. 2020)” (Sec. 15.0) and takes effect “immediately upon publication in the Official Gazette” (Sec. 16.0). EDCOM II reported its publication on March 4, 2026.

Before and after: what the 2025 circular changed in the list

What is new

Thirty-six of the ledger’s rows from Annex C were on neither the 2017 list nor the 2020 addenda. Most come straight from the laws of 2020 to 2025:

• ALS, eleven items: literacy mapping, finding learners, Community Learning Centers, learners’ transportation, meals and allowances, training, supplies, printing, Community ALS Implementors, post-program activities, local innovations, and other activities DepEd authorizes.
• Learners with disabilities, four items: sites and centers, assistive devices and teacher training, health and assessment services, and livelihood training. Two more sit under other headings: early identification and intervention for children below five (ECCD, item 7) and professionals on an Inclusive Learning Resource Center team (Operation and maintenance, item 12(c)).
• Parent effectiveness and ARAL, two items each.
• Programs named under operation and maintenance: non-formal education, Special Education, Senior High School, the Open High School program, Madrasah classes and remedial classes (items 1 to 6).
• People: school counselors and counselor associates (item 12(b)).
• Buildings and equipment: learning centers, libraries and school dormitories; gymnasiums and sports areas; RFID systems, CCTV, furniture and fixtures, and service vehicles.
• Three items outside any of the laws above: information and behavior change materials, “voluntary contributions authorized under existing laws”, and the use of the fund “as collateral or as a payment loan” for the educational expenses the circular lists, when the board authorizes it by resolution.

One new item sets an old cutoff date. Allowances that a local government grants to DepEd’s own teachers and staff may be charged to the fund only if they were “chargeable against the SEF as of 31 December 1997”. Later ones go to the General Fund, except in fourth and fifth class municipalities, where they may still be charged to the fund “so long as the same does not exceed ten percent (10%) thereof” (Operation and maintenance, item 10).

What changed

Fifteen items kept their place and changed their words. The widest changes are in school health:

Two changes narrow the words. The 2020 training item paid for “Training/webinars for teaching and non-teaching personnel, school leaders, parents, learning facilitators, and community education volunteers” (JC No. 2, s. 2020, Sec. 2.1.6). Annex C names “competency trainings, benchmarking” for locally hired personnel (item 19) and teachers’ competency training with remedial classes (item 6); training also appears under ECCD, ALS and learners with disabilities. And the 2020 item on school activities named “scouting activities … of the Boy Scouts of the Philippines and the Girl Scouts of the Philippines, programs to promote campus journalism, Parents-Teachers Association activities, Student Council Government Activities”. Annex C keeps only the general phrase that followed that list, widened to “co-curricular and other learner support activities that promote holistic learner development and well-being, leadership, and values as may be provided under the corresponding DepEd issuances” (item 13). A board that funds a jamboree or a PTA activity from the SEF now has to point to the DepEd issuance that makes it a learner support activity.

Three changes are small. Communication expenses moved out of the item on operating schools into an item of their own (items 11 and 16). The item on tutors’ honoraria now adds “in accordance with relevant laws, rules, regulations, and issuances” (item 8). And school sites became “school sites or lands”.

What is no longer listed

Four items of the October 2020 addendum have no counterpart in Annex C: personal protective equipment such as face masks and face shields, thermal scanners and digital thermometers, “vaccines, vitamins and minerals; and food supplements”, and “psychosocial first aid, mental and physical examination or check-up for teaching and non-teaching personnel and learners, and medical doctors’ consultation” (JC No. 2, s. 2020, Secs. 2.1.8.1 to 2.1.8.3 and 2.1.8.5). The fund still pays for school health through the personnel, supplies and facilities of item 12, and for micronutrient supplements and vaccination under the National Feeding Program.

Before and after: the rules around the list

Table 3. Rules on planning, priorities and reporting in the 2017 and 2025 circulars

The school’s part did not change. In both circulars the board considers “The report of the school heads on the state of education at the start of every school year”, with the school’s performance indicators and audited financial reports, and schools file their funding requests with the district supervisor or the superintendent by August 31 (2017, Secs. 5.3.2 and 5.5; 2025, Secs. 6.4.2 and 6.8).

What a circular cannot change

A joint circular explains the law. It does not add to it. Three limits follow.

1. The six purposes can be widened only by Congress. Every heading of Annex C traces to Section 272 or to one of the later laws in Table 1. The circular says so itself: it is issued “To revise and broaden the scope of allowable expenses chargeable against the SEF pursuant to recent legislation” (Sec. 2.4).
2. Scholarships are still out. Annex C has no item for scholarship grants, and the ruling in Province of Cebu stands: they go to the General Fund.
3. A circular can be withdrawn. EDCOM II’s Final Report credits the 2025 circular with clearing up “longstanding ambiguities in allowable expenditures” and then warns that joint circulars “can be rescinded or revised by succeeding administrations. Legislative amendment of the SEF provisions in the Local Government Code is needed to permanently institutionalize these reforms” (p. 36).

One item of Annex C stands apart from the rest. The closing paragraph that lets the fund serve “as collateral or as a payment loan” appears under no heading, and Section 3.0 of the circular, its list of legal bases, cites no provision for it. A board that uses it should keep within the conditions the paragraph sets: a loan “intended for educational expenses as enumerated in this JC”, and a board resolution.

What this means for school heads

1. Ask for what Annex C lists, in its words. Use the ledger to find the item and cite it in the request, with its heading and number. An auditor reads the same list.
2. Put it in the School Improvement Plan first. The fund pays only for items “contained in the approved SIP and DEDP” (Sec. 6.3.1). A need that is not in the plan cannot be funded, however plainly Annex C allows it. DepEd’s School Improvement Plan covers the plan itself.
3. Show that national funds do not cover it. Section 7.1 lets the fund pay only what DepEd and other agencies have “not adequately funded”. State what the school’s Maintenance and Other Operating Expenses allocation already pays for; see School MOOE. Financial management is a strand of PPSSH Domain 2.
4. File by August 31, through the right officer. Requests go to the district supervisor for a municipal board and to the superintendent for a city board (Sec. 6.8). The board approves its budget by October 31.
5. Recheck anything funded under the 2020 addenda. If the school has been receiving SEF support for scouting, campus journalism, Parents-Teachers Association activities, student government, protective equipment or thermal scanners, the item it was charged to has been repealed. Find the Annex C item that now covers it, or ask the board to consider it for the local government’s General Fund (Sec. 7.2).
6. Bring the new purposes to the board. ALS learners’ meals and transportation, assistive devices, a school counselor, ARAL para-teachers and a library are all on the list now. Working with the board is community engagement in PPSSH Domain 5.

Frequently asked questions

Can the SEF pay teachers’ salaries?

Yes, for locally hired teachers. Annex C allows the “compensation/allowances of teachers locally-hired in elementary and secondary schools/community learning center identified to have shortages per the teacher deployment analysis of DepEd” (Operation and maintenance, item 7), at rates the board sets that do not exceed the local government’s salary schedule (item 19). The Supreme Court upheld such salaries for extension classes in Commission on Audit of the Province of Cebu v. Province of Cebu (G.R. No. 141386, November 29, 2001). Additional allowances for DepEd’s own teachers are limited by item 10.

Can the SEF be used for scholarships?

No. The Local Government Code dropped scholarships from the fund’s purposes, and the Supreme Court ruled in 2001 that college scholarship grants “should not be charged against the Special Education Fund, but against the General Funds” of the local government (G.R. No. 141386). Annex C of Joint Circular No. 01, s. 2025 has no item for scholarships.

Is Joint Circular No. 1, s. 2017 still in force?

No. Joint Circular No. 01, s. 2025 repeals it, together with the two addenda of 2020 (Sec. 15.0). It was signed on December 3, 2025 and took effect on its publication in the Official Gazette.

Can the SEF pay for PTA activities and scouting?

Not by name any longer. Joint Circular No. 1, s. 2020 listed scouting activities, campus journalism, Parents-Teachers Association activities and student government activities (Sec. 1.2.2), and that circular has been repealed. Annex C allows “co-curricular and other learner support activities that promote holistic learner development and well-being, leadership, and values as may be provided under the corresponding DepEd issuances” (Operation and maintenance, item 13), so an activity needs a DepEd issuance behind it.

Can the SEF pay for the Alternative Learning System?

Yes. Republic Act No. 11510 authorizes Local School Boards to set aside part of the fund for ALS “Notwithstanding the provisions of Sections 235 and 272” of the Code (Sec. 18), and Annex C lists eleven ALS items, among them Community Learning Centers, learners’ transportation, meals and allowances, and Community ALS Implementors.

Sources

Laws

• Republic Act No. 5447, An Act Creating a Special Education Fund (September 25, 1968), Sec. 1.
• Republic Act No. 7160, Local Government Code of 1991 (October 10, 1991), Secs. 100(c), 235 and 272.
• Republic Act No. 10410, Early Years Act of 2013 (March 26, 2013), Sec. 7(b).
• Republic Act No. 10665, Open High School System Act (July 9, 2015), Sec. 9.
• Republic Act No. 11037, Masustansyang Pagkain para sa Batang Pilipino Act (June 20, 2018), Sec. 7.
• Republic Act No. 11510, Alternative Learning System Act (December 23, 2020), Sec. 18.
• Republic Act No. 11650, Instituting a Policy of Inclusion and Services for Learners with Disabilities in Support of Inclusive Education Act (March 11, 2022), Sec. 24(g).
• Republic Act No. 11908, Parent Effectiveness Service Program Act (July 28, 2022), Sec. 12.
• Republic Act No. 12028, Academic Recovery and Accessible Learning (ARAL) Program Act (October 16, 2024), Sec. 13.
• Republic Act No. 12199, Early Childhood Care and Development System Act (May 8, 2025), Secs. 7(b) and 19.
• Executive Order No. 189, s. 1987 (June 10, 1987), Secs. 4 and 5.

Court decision

• Commission on Audit of the Province of Cebu v. Province of Cebu, G.R. No. 141386, November 29, 2001, En Banc.

Joint circulars and DepEd issuances

• DepEd-DBM-DILG-DOF Joint Circular No. 01, s. 2025, Omnibus Guidelines on the Use of the Special Education Fund (SEF), Secs. 2.0, 3.0, 6.0 to 10.0, 15.0 and 16.0, and Annex C.
• DepEd Order No. 10, s. 2017, Revised Guidelines on the Use of the Special Education Fund (March 3, 2017), enclosing DepEd-DBM-DILG Joint Circular No. 1, s. 2017 (January 19, 2017), Secs. 2.0 and 4.0 to 6.0.
• DepEd-DBM-DILG Joint Circular No. 1, s. 2020 (August 27, 2020), Addendum to Joint Circular No. 1, s. 2017, Sec. 1.0.
• DepEd-DBM-DILG Joint Circular No. 2, s. 2020 (October 23, 2020), Addendum No. 2 to Joint Circular No. 1, s. 2017, Secs. 1.0 and 2.0.

Reports

• Laguda, R., Aquino, G., Cangayao, L., & Tagle, R. (2025). Realizing Shared Governance: Decentralization of Philippine Basic Education. The Asia Foundation and EDCOM II, Box 1 and Table 3, pp. 32 to 34.
• Second Congressional Commission on Education (2026). Turning Point: A Decade of Necessary Reform (2026-2035), EDCOM II Final Report, pp. 36 and 368.
• EDCOM II (March 4, 2026). New Special Education Fund guidelines now allow funding for ECCD, nutrition, and literacy remediation.

This guide explains the laws and joint circulars on the Special Education Fund for study and professional awareness. It is not legal or audit advice; for a specific expense, consult your Local School Board, the local accountant or the Commission on Audit.

Written by Mark Anthony Llego for NASH Reviewer. Sources: Republic Acts No. 5447 and 7160 and the later laws that name the fund, the Supreme Court’s decision in G.R. No. 141386, the joint circulars of 2017, 2020 and 2025, the Laguda study for EDCOM II and the EDCOM II Final Report.