Japan to allocate ¥1.9 tril to quake recovery from FY2026-2030

The Japanese government will allocate around 1.9 trillion yen for reconstruction projects in northeastern areas affected by the 2011 earthquake and tsunami from fiscal 2026 through fiscal 2030, sources close to the matter said Monday.

The third-phase budget reflects rising construction costs and marks an increase from the approximately 1.6 trillion yen allocated in the previous five-year phase through fiscal 2025, the sources said.

The new budget will focus on revitalizing Fukushima Prefecture, including the decommissioning of the Fukushima Daiichi nuclear plant and final disposal of decontaminated soil. The government also appears to be prioritizing preparations for the return of evacuated residents, according to the sources.

Three reactors at the Fukushima plant suffered meltdowns following the March 11, 2011, earthquake and tsunami, releasing massive amounts of radioactive material and contaminating surrounding land.

The government plans to include the next-phase budget in its basic reconstruction policy, which is set to be revised this month. The funding will primarily come from revenue generated by the special reconstruction income tax.

By prefecture, Fukushima's reconstruction budget will rise from the 1.1 trillion yen allocated in the second phase, with projects including support for reopening medical facilities and schools in areas where evacuation orders have been lifted.

Meanwhile, Iwate and Miyagi prefectures are expected to see cuts from their respective 100 billion yen second-phase budgets, as housing and infrastructure reconstruction in affected areas has largely been completed.

Reconstruction programs for the two prefectures in the third phase will cover mental health support and assistance for children, as needed.

More than 33 trillion yen has been spent on reconstruction projects for the earthquake as of fiscal 2025.