After Estrada was accused of corruption, Arroyo resigned from her cabinet position as secretary of the Department of Social Welfare and Development and joined the opposition against the president.
[10][11] On November 18, 2011, Arroyo was arrested and held at the Veterans Memorial Medical Center in Quezon City on charges of electoral sabotage[12][13] but released on bail in July 2012.
Arroyo then studied for two years at Georgetown University's Walsh School of Foreign Service in Washington, D.C. where she was a classmate of future United States president Bill Clinton.
[32] Arroyo resigned from the Cabinet in October 2000, distancing herself from Estrada, who was accused of corruption by a former political supporter, Chavit Singson, Governor of Ilocos Sur.
Private prosecutors walked out of the trial when pro-Estrada senators prevented the opening of an evidence (a brown envelope) containing bank records allegedly owned by President Joseph Estrada.
With the walkout, the impeachment trial was not completed and Filipinos eventually took to the streets in masses to continue the clamor for President Estrada's resignation.
From January 17 to 20, 2001, hundreds of thousands of Filipinos gathered at Epifanio de los Santos Avenue (EDSA), the site of the original People Power Revolution.
The clamor for a change in the presidency gained momentum as various sectors of Philippine society – professionals, students, artists, politicians, leftist and rightist groups – joined what became known as EDSA II.
Violence erupted when the protesters attempted to storm the presidential palace and the military and police were ordered to use their arms to drive them back.
In a press conference held on June 10, 2005, Samuel Ong, former deputy director of the National Bureau of Investigation (NBI) claimed to have audio recordings of wiretapped conversations between Arroyo and an official of the Commission on Elections (COMELEC).
[46] According to Ong, the recordings allegedly proved that Arroyo ordered the rigging of the national elections for her to win by around one million votes against Poe.
[56] Several members of the Senate, including Franklin Drilon, Francis Pangilinan, and Pia Cayetano, condemned the proclamation as it contravenes "the fundamental guarantees of the Constitution, particularly the basic civil liberties enshrined therein.
[53][55] Presidential Proclamation 1017 was lifted on March 3, 2006, but members of the opposition, private lawyers, and concerned citizens challenged its constitutionality before the Supreme Court.
[58] On May 4, the high court declared the proclamation constitutional; however, it also ruled it was illegal for the government to implement warrantless arrests and seize private institutions and companies.
[60] After decades of surveys, consultations, and studies starting with the Monroe Survey in 1925 during the American period, the 9-year implementation process of K–12 curriculum finally began on May 20, 2008 during the Arroyo administration when Senator Mar Roxas filed the Omnibus Education Reform Act of 2008 (Senate Bill 2294) to strengthen the Philippine education system through timely interventions on the quality of teachers, the medium of instruction used and the evaluation of students' aptitude, among other aspects.
[61] On January 7, 2010, senator and presidential candidate Benigno Aquino III adopted the position of SB 2294; he said this will "give everyone an equal chance to succeed" and "have quality education and profitable jobs.
[66] The economy was one of the few to avoid contraction during the 2008 global financial crisis, faring better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic consumption, large remittances from four-to five-million overseas Filipino workers, and a growing business process outsourcing industry.
A controversial expanded value added tax (e-VAT) law, considered the centerpiece of the Arroyo administration's economic reform agenda, was implemented in November 2005, aiming to complement revenue-raising efforts that could plug the country's large budget deficit.
The tax measure boosted confidence in the government's fiscal capacity and helped to strengthen the Philippine peso, making it East Asia's best performing currency in 2005–06.
[69] The peso strengthened by nearly 20% in 2007, making it one of Asia's better performing currencies for that year, a fact attributed to a combination of increased remittances from overseas Filipino workers and a strong domestic economy.
[74] After receiving final military honors at the inauguration ceremony of incoming President Benigno Aquino III, she headed straight to San Fernando, Pampanga for her own oath-taking as congresswoman.
[75] Despite being considered the strongest contender for speaker of the House, Arroyo declined to seek the position, hoping instead to take on a role similar to Sonia Gandhi, who was influential as merely the head of her party.
[77] While still confined in the Veterans Memorial Medical Center for hospital arrest, Arroyo successfully earned a second term as congresswoman for Pampanga's second congressional district at the conclusion of the 2013 Philippine mid-term elections on May 13, 2013, defeating the ruling Liberal Party's Vivian Dabu, who was the provincial administrator under former Governor Ed Panlilio.
The House of Representatives, under the leadership of Speaker Feliciano Belmonte, Jr., issued a travel permit allowing her to have treatment in Germany despite the Department of Justice hold departure order.
[83][84] Days earlier, the Supreme Court had issued a resolution enjoining attempts by the Department of Justice to prevent her departure from the Philippines to seek medical treatment overseas.
[95] On July 19, 2016, a few weeks after Duterte was sworn in as president, the Supreme Court ruled in favor of the dismissal of plunder case against Arroyo, gathering a vote of 11–4 which was read by spokesperson Theodore Te.
In August 2018, amid rumors that she was gunning to become prime minister under a proposed federal government, which she was advocating in the House, Arroyo stated that she will retire from politics and would not pursue any position after the May 2019 elections.
[119] Arroyo said she will join her fellow representatives in passing the legislative agenda of the administration of President Bongbong Marcos and will continue to push for projects aligned with the Pampanga Megalopolis program.
[122] Arroyo became part of President Bongbong Marcos's delegation member of his international trips beginning on his working visit to Thailand in November 2022 for the 2022 Asia-Pacific Economic Cooperation summit.
[136][137] In July 2008, the Social Weather Stations (SWS) said that Arroyo registered a net satisfaction rating of minus 38 in a survey conducted in the last week of June, making her the most unpopular president in the country since democracy was restored in 1986.