The House of Councillors special committee has begun deliberating a bill to establish a "vice-capital" to decentralize Japan's economic activity [1].

The proposal represents a significant attempt to alleviate the extreme concentration of population and government functions in Tokyo. By designating a second capital, the government hopes to stimulate regional growth and create a more resilient national infrastructure in the event of a disaster.

The bill was proposed by the Liberal Democratic Party and the Japan Innovation Party [1]. It entered the special committee for deliberation on June 30, 2026 [1], following the submission of a related bill to the House of Representatives on June 24, 2026 [2].

Opposition parties have expressed concerns regarding the financial transparency of the project. Lawmakers are demanding the disclosure of post-implementation costs to ensure the plan does not become a fiscal burden [1].

Constitutional Democratic Party leader Mizuoka criticized the legislation, arguing that the proposal is designed primarily to benefit one region. Mizuoka said the bill is "a bill by Osaka, for Osaka, and of Osaka" [3]. This criticism suggests the "vice-capital" concept is an extension of the Japan Innovation Party's focus on the Osaka Metropolis Plan.

Representatives of the Japan Innovation Party have signaled the high stakes of the legislation for their political standing. A party representative said that if the plan is not realized, the "harvest of the coalition is zero" [1]. Yoshimura Hirofumi, leader of the Japan Innovation Party, said that the party had made a "painful decision" to modify the vice-capital bill [3].

Despite these disagreements, opposition parties have agreed to hold witness questioning to further investigate the feasibility, and economic impact of the designation [1].

““A bill by Osaka, for Osaka, and of Osaka””

The vice-capital proposal is more than an urban planning project; it is a political flashpoint between the LDP and the Japan Innovation Party's regional ambitions. If passed, it could shift the geopolitical center of gravity within Japan away from Tokyo, but the fierce opposition regarding costs and 'Osaka-centrism' indicates that the government may struggle to find a consensus that satisfies other neglected prefectures.