The 15 June 1991 eruption of Mount Pinatubo was the second-largest volcanic eruption of the 20th century.

Republic Act No. 7637, otherwise known as “An Act Appropriating the Sum of Ten Billion Pesos for the Aid, Relief, Resettlement, Rehabilitation and Livelihood Services as well as Infrastructure Support for the Victims of the Eruption of Mt. Pinatubo, Creating the Mt. Pinatubo Assistance, Resettlement and Development Commission, and for Other Purposes,” was signed into law on 24 September 1992.

The Mt. Pinatubo Assistance, Resettlement and Development Fund will assist the victims in the communities damaged or destroyed or adversely affected by the eruption of Mt. Pinatubo and its after effects by extending to them aid, relief, resettlement, rehabilitation or repair and reconstruction of infrastructure to the end that life may return to normalcy at the earliest possible time and the development of Central Luzon may be accelerated.

The Pinatubo Fund serves to restore the living conditions of the Aetas and other members of the cultural communities in the area to their productive pre-eruption conditions, with the settlement being chosen according to its suitability as permanent upland abodes thereby ensuring the improvement of these communities. The Fund will likewise provide additional resources for the immediate relief of the victims; to establish resettlement centers, homesites and townsites for displaced families; to provide livelihood and employment opportunities; to repair, reconstruct or replace government infrastructure damaged or destroyed by said disaster whenever economically, socially and technically advisable; and to construct new infrastructure facilities by the community.

The Act also creates the Mt. Pinatubo Assistance, Resettlement and Development Commission with a term of six years and is attached to the Office of the President.

The Commission, is mandated to formulate policies and plans for the relief, rehabilitation, resettlement and livelihood services as well as infrastructure support in harmony with the other plans and policies of the National Government and other agencies such as the Bases Conversion and Development Authority; to determine areas where the lahar flow may be diverted to spare communities and/or minimize damage to lives, habitation, infrastructure, agricultural and other resources; to prioritize and coordinate the implementation of the various programs and projects of the Commission; to sue and be sued in its name, and to adopt, alter and use a seal; to enter into, make, perform and carry out contracts of every class, kind and description which are necessary to the realization of its purposes with any person, firm or corporation, private or public, and, upon consultation with the President, with foreign government entities, subject to the usual accounting and auditing requirements; to apply for, receive and accept grants and donation of funds, equipment, materials and services needed for the development of the area, within and outside the Philippines; to monitor the progress of the relief, rehabilitation, resettlement and livelihood as well as infrastructure support programs and projects; to coordinate and consult with concerned national and local officials, both elective and appointive, as well as accredited non-government organizations (NGOs) in the prioritization and prosecution of the programs and projects; to call upon any department, office, instrumentality, agency, or any political subdivision of the Government for such assistance as may be necessary for the attainment of the objectives of the Commission; and, to perform such other powers as may be necessary and proper to carry out the purposes of this Act.

The Commission shall submit to the President and to Congress a detailed quarterly report on the funds allocated indicating the amount released, obligated and disbursed, including a list of local and foreign donors and the nature of their donations.

A Joint Congressional Oversight Committee was likewise created to monitor the implementation of this Act.

The Pinatubo Project Management Office was dissolved in 2005.