The House of Representatives has approved on second reading a bill seeking to create a national emergency response system that would allow the government to act faster during major fuel price spikes, energy supply risks, and other external shocks that affect families, workers, businesses, and basic services.
House Bill No. 9305, or the proposed KALINGA Act, was approved as a substitute measure for House Bill No. 8834. It seeks to institutionalize the “Komprehensibong Alalay sa Livelihood, Inflation, Negosyo at Goods Assistance” Program as a targeted government mechanism during extraordinary fuel price volatility and similar crises.
Principal authors are House Speaker Faustino “Bodjie” Dy and Majority Leader Ferdinand Alexander “Sandro” Marcos. It aims to give the Marcos administration a clearer and faster response framework when rising fuel costs begin to trigger wider increases in food prices, transport fares, electricity rates, livelihood costs, and essential goods.
“The Kalinga Act is about preparedness, pero preparedness with compassion. Under the leadership of President Ferdinand ‘Bongbong’ Marcos Jr. and Speaker Bojie Dy, we want the government to be ready with direct, targeted and time-bound help when fuel prices begin to hurt families, workers, farmers, fisherfolk, drivers, riders and small businesses,” Marcos said.
Under the bill, the President may declare a state of national emergency upon the recommendation of the KALINGA National Response Council if Dubai crude oil prices reach or exceed US$80 per barrel for 30 days, domestic fuel prices increase by at least 30 percent within 30 days, or national fuel inventory drops below 30 days of supply.
Once a national energy emergency is declared, the President may exercise limited and time-bound emergency powers to implement KALINGA interventions. These include the release, realignment, or augmentation of available funds for emergency relief measures, subject to constitutional, budgetary, procurement, and audit rules.
The bill also allows emergency procurement for fuel, energy, transport, logistics, food security, social protection, and other urgent program needs, with transparency safeguards and post-audit by the Commission on Audit.
The Ilocos Norte solon said the proposed law is intended to prevent slow and fragmented responses when price shocks begin affecting household budgets and business operations.
“Kapag tumataas ang presyo ng langis, hindi lang gasoline stations ang apektado. This bill recognizes the chain reaction on food prices, pamasahe, electricity, livelihood, small businesses and the daily cost of living, and it gives the government the tools to respond before the burden reaches the Filipino family,” the lawmaker said.
The KALINGA Program will cover low-income and near-poor households, minimum wage earners, displaced and underemployed workers, informal workers, public transport drivers and operators, delivery riders, logistics and freight service providers, commuters, farmers, fisherfolk, micro, small and medium enterprises (MSMEs), overseas Filipino workers and their families, and other vulnerable sectors.
For households, the proposal authorizes emergency cash transfers, food assistance, transport support, fuel-related relief, vouchers, and temporary augmentation of existing social protection programs. It also provides electricity bill assistance of up to P500 through a bill deduction or credit for qualified beneficiaries whose average monthly power consumption is above 100 kilowatt-hours but not more than 150 kilowatt-hours.
The measure also provides fuel subsidies, vouchers, fuel cards, fuel discount mechanisms, fertilizer, seed, feed, crop protection support, and post-harvest assistance for farmers and fisherfolk to reduce the impact of fuel costs on food prices.
For public transport, the bill authorizes fuel subsidies, vouchers, direct financial assistance, fare subsidy, service contracting, and other commuter support programs. Platform-based transport drivers and delivery riders may also receive fuel-linked assistance, temporary commission reduction, incentive rebates, and mandatory disclosure of commission rates, deductions, incentives, and fuel assistance programs during the emergency period.
MSMEs and cooperatives may receive emergency credit, concessional financing, working capital support, credit guarantees, debt relief, subsidies, vouchers, digitalization support, market access assistance, and other interventions to prevent closures, protect jobs, and maintain the supply of essential goods and services.
The bill also includes worker protection measures such as flexible work arrangements, emergency employment, temporary wage support, cash-for-work programs, livelihood assistance, skills training, entrepreneurship support, and job matching.
It further directs the government to accelerate energy efficiency, renewable energy, indigenous energy, and electric mobility measures, including the solarization of farms, fisheries facilities, cold storage sites, public markets, food terminals, transport facilities, government buildings, and other essential facilities.
The proposal authorizes the President to suspend value-added tax, excise tax on petroleum products, or both for a limited period not exceeding 60 days, subject to reports to Congress on foregone revenues, inflation impact, fuel price effects, cost-benefit analysis, and possible market distortions.
It also imposes a 15-percent windfall profit tax on covered oil entities during the declared national emergency, allows the Philippine National Oil Company to use up to P8 billion in certified available internally generated funds for emergency petroleum procurement, and provides a P10-billion subsidy to the National Power Corporation for missionary electrification fuel requirements that will not be passed on to consumers through the universal charge.