Senator Loren Legarda has filed Senate Bill No. 1413, or the TESDA Modernization Act of 2025, in a bid to align the country’s technical education system with the rapidly evolving demands of the labor market. 

The proposed legislation seeks to overhaul the Technical Education and Skills Development Authority (TESDA), which has operated under the same charter since its establishment in 1994.

Legarda, who chairs the Senate Committee on Higher, Technical, and Vocational Education, said it is time to recalibrate the agency to make it more responsive to the needs of industries and workers in a digital and globalized economy.

“Our people must be equipped with the right skills to thrive in a rapidly changing world of work,” Legarda said. 

“This bill will ensure that TESDA delivers high-quality and relevant training that helps Filipinos build better futures for themselves and their families,” she further pressed. 

Key reforms

The bill proposes the creation of a Board of Advisers as TESDA’s principal policy and oversight body, comprising the Director General, key cabinet secretaries, the Chair of the Commission on Higher Education (CHED), and representatives from the private sector. 

The Director General will be given Cabinet rank and broader authority to rationalize TESDA programs—upgrading, merging, or phasing out those that are no longer relevant to market needs.

Community-based training will be decentralized to local government units, allowing more agile and localized implementation of skills development initiatives.

Under the proposed modernization, TESDA’s Secretariat will be reorganized into specialized offices focusing on planning, accreditation, standards-setting, enterprise-based training, and local skills development. 

Alternative and flexible learning systems, such as recognition of prior learning, micro-credentials, and digital badges, will also be institutionalized to validate informal and non-traditional learning pathways.

The bill also aims to bolster TESDA’s funding mechanisms. It introduces reforms to the TESDA Development Fund, institutionalizes scholarship programs, and explores new funding models like the levy-grant system. Regular independent performance reviews will be mandated to ensure transparency and accountability in TESDA operations.

Legarda emphasized that modernizing TESDA is key to preserving the employability and adaptability of Filipino workers, particularly as industries continue to adopt new technologies and shift skill requirements.

“TESDA must evolve with industry standards,” she stressed. “We have one of the most skilled and hardworking workforces in the world, and it is our responsibility to ensure that they remain employable, adaptable, and ready for the future.”

As co-chair of the Second Congressional Commission on Education (EDCOM II) and a previous recipient of the TESDA Kabalikat Award for Legislative support, Legarda said her advocacy for technical education and sustainable livelihoods is rooted in the belief that meaningful employment is central to nation-building.

“Modernizing TESDA is about dignity through work,” she said. “It ensures that every Filipino has the skills to build a stable and productive life.”

If passed into law, the TESDA Modernization Act of 2025 is expected to become a cornerstone reform in shaping a future-ready, resilient, and inclusive Filipino workforce.