CA No. 586 is known as the “Educational Act of 1940.” Its purpose is to revise the system of public elementary education in the Philippines, including its financing.

It references the constitutional mandate on public education, emphasizing that the revision is needed to comply with it and meet the increasing demand for public elementary instruction.

The objectives are: (a) simplify, shorten, aid, and make practical and economical the primary and intermediate courses; (b) provide adequate facilities for every school-age child to commence and complete at least the primary course; (c) ensure every child completing primary has adequate working knowledge of reading/writing, arithmetic fundamentals, geography, Philippine history and government, and character/civic training; and (d) ensure all attending children remain literate and become useful, upright, patriotic citizens.

The Department must revise the elementary school curriculum to effectuate the objectives in Section 2 and adjust the academic school year so vacations coincide with working seasons in the Philippines. The revised curriculum, once approved by the President, must be adopted in all public schools as soon as practicable but not later than the commencement of the school year 1941–1942.

With Presidential approval, the retired age for admission may be raised to not more than nine years, and the time required to complete elementary instruction (primary and intermediate) may be reduced to not less than five years.

No. Any approved increase regarding the minimum age does not affect children already enrolled before the school year 1940–1941.

No child shall be admitted into the public elementary schools except on condition that he/she shall remain in school until completing at least the primary course.

Compulsory attendance may be waived: (1) when the distance from the child’s home to the nearest school exceeds three kilometers and the school is not conveniently accessible considering available transportation; (2) when the child is mentally defective or physically unable to enter school (supported by a certificate from a licensed physician); (3) when, due to the economic condition of the child’s parents, the child cannot afford to continue in school; and (4) when the child transfers to a private school.

They are liable to a fine of not less than twenty pesos nor more than fifty pesos.

Beginning the relevant school year, with Presidential approval, the Secretary may authorize holding two or more complete single sessions a day, or adopt other measures calculated to take care of the largest number of school children.

Public elementary education is supported by the National Government starting 1940–1941. However, chartered cities must continue to support all intermediate classes within their jurisdictions, unless the President approves national government aid to chartered cities that are not financially able to fully provide for their intermediate schools/classes.

Sites are acquired by municipalities, municipal districts, or chartered cities, depending on the case. Acquisition is through purchase or conditional/absolute donation.

Matriculation fees may be collected in municipalities and municipal districts in an amount determined by the President but not exceeding two pesos per pupil enrolled in intermediate grades. Proceeds accrue to national government funds, primarily for purchase of library books/equipment and for financing athletic activities in intermediate classes.

From all taxes collected and remitted under Section 8 of CA 465, 50% is allotted by population basis: half to general funds of provinces (with subprovince shares), and the other half to general funds of chartered cities, municipalities, and municipal districts. The remaining 50% goes to the National Government except that chartered cities continue receiving shares in the school fund of cities, municipalities, and municipal districts as under prior law.

The school fund in all municipalities and municipal districts is disestablished. Any unexpended and unobligated balance at approval date becomes part of the municipal general fund, and moneys accruing to municipal school by operation of law and not specifically transferred to the National Government accrue to the municipal general fund after June 30, 1940.

No tuition fees for intermediate instruction by municipalities and municipal districts shall be collected. Tuition fees collected during school year 1940–1941 for maintenance of intermediate classes must be returned to the respective contributors.

It repeals: CA No. 381, Section 8 of CA No. 465, Sections 358, 360, and 363 of CA No. 466, and so much of Section 366 of CA No. 466 and other conflicting Acts as are in conflict with CA No. 586. Effect: inconsistent provisions governing school financing and related matters are nullified to align with the new financing and education system.