Philippines approves Kalinga Act

The Philippine House of Representatives approved the proposed KALINGA Act on second reading on May 20, giving the Marcos administration a draft legal framework to respond faster to fuel-driven inflation and energy supply shocks. House Bill 9305 would institutionalize the “Komprehensibong Alalay sa Livelihood, Inflation, Negosyo at Goods Assistance” program, or KALINGA, as a response mechanism during extraordinary fuel price volatility and similar external shocks. Philippine News Agency, ABS-CBN News and The Manila Times all reported the vote and described the bill as a tool for quicker intervention on food, transport, electricity and other essential costs. ### What exactly did lawmakers approve? House Bill 9305 was approved by the lower chamber on second reading via viva voce during the May 20 plenary session, ABS-CBN News reported. The bill is a substitute measure for House Bill 8834 and was endorsed under Committee Report 313 by the Ad Hoc Committee on Legislative Energy Action and Development, according to Philippine News Agency. Second-reading approval means the proposal cleared debate and amendments in the House but has not yet become law. (pna.gov.ph) Speaker Faustino “Bojie” Dy III and House Majority Leader Ferdinand Alexander “Sandro” Marcos were identified as principal authors in reports by Philippine News Agency, BusinessMirror and ABS-CBN News. BusinessMirror reported on May 12 that the House ad hoc panel had approved the consolidated Kalinga bill after two months of hearings involving government agencies and private-sector stakeholders. (abs-cbn.com) ### When would the bill let the president act? Philippine News Agency reported that the bill would allow the president to declare a state of national emergency upon the recommendation of the KALINGA National Response Council if Dubai crude oil prices reach or exceed $80 per barrel for 30 days, if domestic fuel prices rise by at least 30% within 30 days, or if national fuel inventory falls below 30 days of supply. The Manila Times published the same trigger conditions, citing a statement from Sandro Marcos. (pna.gov.ph) Once a national energy emergency is declared, the president could use limited and time-bound emergency powers to release, realign or augment available funds for relief measures, subject to constitutional, budget, procurement and audit rules, Philippine News Agency and The Manila Times reported. The bill also allows emergency procurement for fuel, transport, logistics, food security and social protection needs, with transparency requirements and post-audit by the Commission on Audit. (pna.gov.ph) ### Who would get help under KALINGA? Philippine News Agency said the proposed program would cover low-income and near-poor households, minimum wage earners, displaced and underemployed workers, informal workers, public transport drivers and operators, delivery riders, logistics providers, commuters, farmers, fisherfolk, micro, small and medium enterprises, and overseas Filipino workers and their families. ABS-CBN News reported that the bill authorizes emergency cash transfers, food assistance and fuel-related relief for affected households. (pna.gov.ph) The bill also includes electricity bill assistance of up to 500 Philippine pesos for qualified beneficiaries whose average monthly electricity use exceeds 100 kilowatt-hours but does not exceed 150 kilowatt-hours, according to Philippine News Agency. For agriculture and fisheries, the measure provides fuel subsidies, vouchers or discounts, along with support for fertilizer, seeds, feed and crop protection, ABS-CBN News and Philippine News Agency reported. (pna.gov.ph) ### Why did House leaders say the bill was needed now? BusinessMirror reported on May 12 that Sandro Marcos said the bill was meant to create a permanent government mechanism for oil price surges and similar emergencies. “The government will no longer have to look for a law or mechanism to respond to a crisis that burdens our citizens, such as rising oil prices. This is it—the Kalinga Act,” he said, according to BusinessMirror. (pna.gov.ph) Miro Quimbo, the House ways and means committee chair, said the bill also promotes energy conservation, fuel efficiency, renewable energy adoption and electric mobility, ABS-CBN News reported. A Congressional Policy and Budget Research Department paper published in April said the closure of the Strait of Hormuz after escalating Middle East conflict had triggered an oil supply shock with broad effects on Philippine inflation, offering the backdrop for the House push. (businessmirror.com.ph) ### What happens next in the Philippines? As of May 21, the measure had been approved on second reading in the House, not enacted as law, according to Philippine News Agency and ABS-CBN News. BusinessMirror reported earlier that House leaders wanted the Senate to act on the proposal “as expeditiously as possible.” The next formal steps are House third reading, Senate action on a counterpart bill, and, if both chambers pass differing versions, bicameral reconciliation before any measure can be sent to President Ferdinand Marcos Jr. for signature. (abs-cbn.com) (pna.gov.ph)