JIP Drags Down the Diet
By Takuya Nishimura, Senior Fellow, Asia Policy Point
Former editorial writer for the Hokkaido Shimbun
You can find his blog, J Update here.
July 26, 2026
The Diet finished its special session on July 25, approving the Backup Capital Act by a small margin in the Upper House at the last moment. The Liberal Democratic Party (LDP) was not eager to enact it. It was the LDP’s coalition partner, the Japan Innovation Party (JIP: Nippon Ishin-no Kai), that was the main supporter. The opposition parties suspected that JIP was pushing it solely for its own narrow interest. JIP’s persistence on the bill led to a confusing few days at the end of the session.
The Backup Capital Act is aimed at building an alternative “capital” of Japan to Tokyo, in case Tokyo suffers a major natural disaster. The law should also help decentralize businesses in Japan. A city interested in serving as a backup capital must meet several conditions, including a minimum population size, business concentration, or an agreement on coordination between the prefectural government and the city government. While some cities, such as Sapporo, Nagoya or Fukuoka, might qualify, Osaka is recognized as the leading candidate.
In connection with the Backup Capital Act, JIP has put another issue at the top of its reform agenda for the announced purpose of minimizing government expenditures. This is the Osaka Capital Initiative, which would integrate the Osaka prefectural government with the Osaka city government. The integration would resemble the governmental system of the Tokyo metropolitan area. Appealing to the competitive sentiment of the people of Osaka against Tokyo, JIP sold the policy as making Osaka another capital of Japan.
Controlling the seats of the Osaka prefectural governor and the Osaka city mayor, JIP held two referendums on the Osaka Capital Initiative in 2015 and 2020, but the initiative was rejected by a small margin in both referenda. Although residents of the small cities in the Osaka prefecture supported the idea, those in Osaka city did not, because it seemed to have fewer benefits for them.
JIP has been looking for a third chance at the initiative. Their tactic is to connect the Osaka Capital Initiative with the Backup Capital Act, though the party leaders publicly explain that those two concepts are different. But the party has also explained that the Osaka Capital Initiative is a precondition for Osaka to be a backup capital and has declared a third referendum in the spring 2027. JIP’s leader and the governor of Osaka, Hirofumi Yoshimura, announced that he would resign as governor next spring and run again for election as his own successor. He plans to hold the election and the third referendum on the same day on the expectation that the initiative can ride his coattails.
Hence JIP’s enthusiasm for enacting Backup Capital Act in the special session of the Diet that closed on July 25. To have the “double voting” in Osaka next spring, the Diet had to pass the Act in this session. In a meeting with Prime Minister Sanae Takaichi on July 7, Yoshimura reconfirmed that the LDP and JIP would enact the Backup Capital Act in this session and that JIP would leave behind its effort to reduce seats in the Diet.
No party other than JIP had any interest in a backup capital. When the chairman of a committee in the Lower House, who was from JIP, unilaterally began discussion of the Backup Capital Bill in late June, the opposition parties boycotted all the discussions. The Diet spent a week normalizing its discussions. Even the LDP was reluctant to pass the backup capital bill within the current session.
Takaichi came to the rescue of the bill in the final phase of the Diet session with her personal support. Takaichi was indebted to JIP for its support of the National Flag Vandalism Punishment Act, which had been on her long-time political agenda. That statute was enacted on July 17. In return, Takaichi extended the term of the Diet session for 8 days and worked to pass the backup capital bill.
The opposition parties were adamantly opposed to the unilateral procedure used by the LDP and JIP to pass the bill in the Upper House -- where the two parties do not have a majority. Although the opposition parties demanded further discussion of the bill, the chairman of the committee, a member of the Constitutional Democratic Party of Japan, decided to finish discussion quickly and to take a vote on the bill. However, the chairman accepted a supplemental resolution to the bill that ruled out JIP’s planned double voting on the referendum and governor’s race. With this supplement, the bill was approved by a slight margin, supported by the LDP, JIP, Team Mirai and some independent lawmakers.
Yoshimura was not satisfied with the result. Holding votes for the third referendum on the Osaka Capital Initiative and for the Osaka gubernatorial election on the same day next spring is crucial for JIP to gain broad support from the voters. Immediately after the Diet passed Backup Capital Act, Yoshimura reiterated that he still planned to have the double vote next spring. The leader of Democratic Party for the People, Yuichiro Tamaki, accused Yoshimura of a lack of respect for the decisions of the Diet. What happens next spring in Osaka remains to be seen.
As seen in his unusually strong push for seat reduction in the House of Representatives, Yoshimura is too focused on his own agenda in Osaka to properly honor the Diet, which, after all, represents the whole interest of the people of Japan. The Osaka Capital Initiative is a typical populist issue to firm up the political base of the party, which is highly concentrated in Osaka. Thus, the Diet spent the last days of the extended session on enhancing JIP’s political fortunes – and those of Takaichi who relies on JIP’s support.

