The Department of Education (DepEd) continues to place literacy at the center of Philippine basic education through the Bayang Bumabasa Initiative. With the release of the Guidelines for the Implementation of the 2025 Needs-Based Program Support Funds (PSF), DepEd reinforces its commitment to targeted, data-driven interventions that address persistent literacy gaps—especially in schools located in low-Special Education Fund (SEF) localities.
Anchored on Republic Act No. 10533 (Enhanced Basic Education Act of 2013) and Republic Act No. 7165, as amended, this policy ensures that limited public resources reach schools that need them most.
What Is the Bayang Bumabasa Initiative?
Bayang Bumabasa is DepEd’s nationwide literacy initiative designed to strengthen early and foundational reading skills, particularly among learners in Grades 1 to 3. It also emphasizes local government unit (LGU) participation, recognizing that literacy development is a shared responsibility among schools, communities, and local leaders.
The initiative aligns with:
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UN Sustainable Development Goal 4 (Quality Education)
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DepEd’s 5-Point Reform Agenda
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The MATATAG Curriculum and Academic Recovery and Accessible Learning (ARAL) Program
Why Needs-Based Program Support Funds Matter
Results from the 2024–2025 Comprehensive Rapid Literacy Assessment (CRLA) revealed that some public schools continue to show low or negative literacy growth between the beginning and end of the school year (BOSY–EOSY). The Needs-Based PSF responds directly to these findings.
Rather than a one-size-fits-all approach, the PSF ensures that schools with the greatest literacy challenges receive focused financial assistance to implement effective interventions for Fiscal Year 2026.
Who Are Eligible for the 2025 Needs-Based PSF?
Eligible public schools are those identified by DepEd based on CRLA data showing a negative difference in literacy performance for SY 2024–2025. The official list of eligible schools is provided in Annex A of the memorandum.
Each eligible school may receive up to ₱1,000,000, charged against FY 2025 Basic Education Curriculum (BEC) Funds under Maintenance and Other Operating Expenses (MOOE), subject to existing budget and accounting rules.
Key Requirements for Schools
To access the PSF, school heads must submit the following through the Needs-Based PSF Online Form:
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Literacy Improvement Plan (LIP)
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Identified literacy gaps based on needs assessment
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Target learners and measurable literacy goals
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Timeline of activities for FY 2025–2026
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Proposed interventions aligned with Bayang Bumabasa
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Monitoring and evaluation tools
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Funding Plan (FP)
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Itemized budget detailing costs and required resources
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Schools must also demonstrate LGU engagement, either through an existing Local Literacy Council (LLC) or certification from the LGU or Local School Board (LSB) indicating support or steps toward counterpart funding.
Allowable Uses of the Funds
The PSF may be used strictly for literacy-related activities, including:
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Implementation of approved School Improvement Plan activities
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Learning materials, supplies, rentals, and minor repairs
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Procurement of semi-expendable items below ₱50,000
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Complementary interventions aligned with the ARAL Program
All expenditures must comply with COA, DBM, and DepEd regulations.
How Funds Are Released and Managed
Once the LIP and FP are approved:
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DepEd Central Office releases funds to Regional Offices via Sub-Allotment Release Orders (Sub-ARO)
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Funds are downloaded to Schools Division Offices (SDOs)
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SDOs release the PSF to school heads
Funds remain valid until December 31, 2026, ensuring ample time for implementation and proper utilization.
Monitoring, Reporting, and Accountability
Transparency and accountability are central to the program. Schools must submit:
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Quarterly liquidation reports
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Quarterly accomplishment reports detailing physical and financial progress
The Literacy Coordinating Council (LCC) Secretariat, together with Regional and Division Offices, conducts monitoring visits and evaluates outcomes based on CRLA results through SY 2026–2027.
Why This Policy Matters for Philippine Education
The 2025 Needs-Based PSF under Bayang Bumabasa signals a shift toward evidence-based funding and targeted literacy support. By prioritizing struggling schools, strengthening LGU collaboration, and focusing on early grades, DepEd is laying the groundwork for long-term learning recovery and inclusive quality education.
Ultimately, improving literacy is not just about reading scores—it’s about empowering learners, families, and communities to build a more informed and resilient nation.