THE DEPARTMENT of Education, in partnership with the Department of Budget and Management, the Department of the Interior and Local Government, and the Department of Finance, has issued a Joint Circular formally updating the Omnibus Guidelines on the Use of the Special Education Fund (SEF).

The landmark policy significantly expands the allowable uses of the SEF to directly address learning and nutritional gaps identified by the Second Congressional Commission on Education (EDCOM 2).

The SEF, generated from a 1 percent real property tax, is intended to support local schools. However, previous EDCOM 2 reports flagged chronic underutilization and stark wealth disparities among local government units (LGUs), resulting in substantial unspent funds and limited progress in advancing inclusive education reforms.

Under existing rules, SEF collections are distributed differently depending on jurisdiction: provinces divide revenues equally between provincial and municipal governments, while cities retain their collections in full.

The newly issued guidelines broaden the scope of SEF-funded programs to include critical interventions in early childhood development, nutrition, alternative learning, and academic recovery.

For Early Childhood Care and Development (ECCD) and nutrition, LGUs may now allocate funds for the National Feeding Program to address undernutrition, establish Child Development Centers, and cover the salaries of locally hired Child Development Teachers.

To support alternative and inclusive education, LGUs may invest in the Alternative Learning System by hiring Community ALS Implementers and providing services for learners with disabilities.

To directly confront the learning crisis, the SEF may now also finance the Academic Recovery and Accessible Learning Program for targeted remedial instruction, as well as the Parent Effectiveness Service Program to strengthen parental involvement in children’s education.

The circular also updates earlier frameworks established under Joint Circular No. 1 and Joint Circular Nos. 1 and 2.

Beyond expanding allowable expenditures, the revised guidelines institutionalize EDCOM 2’s recommendations to strengthen local education governance.

LGUs are strongly encouraged to establish a Local Education Office or a Local School Board Secretariat to oversee and monitor SEF-funded programs. In addition, Local School Boards are now required to adopt evidence-based budgeting by crafting a six-year SEF Investment Program (SEFIP).

The SEFIP aims to ensure that local funds are directed toward interventions that improve foundational literacy, numeracy, and science competencies, guided by actual learning outcomes and nutritional data.

EDCOM 2 commended DepEd, DBM, DILG, and DOF for their collaborative effort and urged all provincial, city, and municipal governments to maximize the expanded guidelines and align local initiatives with national education priorities.

The Commission expressed hope that these reforms would strengthen coordination between national and local resources, ensuring that every Filipino learner gains access to inclusive and high-quality education.