Advancing Regional Revitalization Through the Regional Future Strategy

Since “regional revitalization” began in 2014, efforts nationwide have created employment opportunities, supported childbirth and child-rearing, maintained and secured essential services, and assisted relocation. However, these efforts have not reversed population decline or the concentration of population in Tokyo. In rural areas, falling consumption accompanying population decline raises concern about economic contraction.

The government has set a policy of prioritizing achievement of a “strong economy,” forming clusters in world-leading growth sectors and clusters originating in local regions throughout Japan, and putting Japan on a growth trajectory starting from its regions.

Compact Plus Network is a policy tool intended to improve convenience in daily life and the productivity of service industries by concentrating residences and urban functions, while revitalizing regional economies, making public services more efficient, and reducing administrative costs.

Strengthening connections between transport modes promotes the movement of people and goods and boosts productivity, contributing to regional revitalization and stronger disaster response. Remote-island sea and air routes provide transport that supports residents’ daily lives and access to medical care.

The Regional Future Grant was established in the FY2025 supplementary budget and was also included in the FY2026 budget. It supports industrial cluster plans and growth strategies for local industries, and helps local governments develop projects and implement them. The Regional Development Award has been presented since FY1984; in FY2025, 10 projects received awards from 32 nominations. The Tedukuri Furusato Award has been presented since FY1986; in FY2025, 10 projects received awards in the general category.

The Private Urban Development Promotion Organization supports private urban development projects certified by the Minister of Land, Infrastructure, Transport and Tourism, including through investment. The organization establishes community development funds with regional financial institutions, local governments, and others to support projects involving renovation, crowdfunding, and donations. Through the Small Concession program, it supports outreach and planning for small-scale PPP/PFI projects that make use of closed schools, traditional houses, and other properties.

The Location Optimization Plan system coordinates with healthcare and welfare, housing, public facility reorganization, disaster prevention, and other fields. As of the end of December 2025, 947 municipalities were taking concrete steps toward preparing plans, and 650 municipalities had completed and published them. By the end of FY2025, 1,244 Regional Public Transport Plans had been published. As of April 2025, 55 operating entities had declared completion periods for 132 routes.

In FY2025, the Busta Project advanced work at 7 sites nationwide and conducted surveys to strengthen transport hub functions at 15 sites. Regional exchange and development initiatives are also being promoted through roadside stations, river and coastal partner organizations, Minato Oasis facilities, and other channels.

Regional public transport measures support buses, local railways, and remote-island sea and air routes, while addressing transport gaps and promoting Japan's version of ridesharing. In FY2024, there were 276 remote-island sea routes, with transport demand of 39 million people, a decrease of about 5% over the previous five years. At the end of March 2026, 127 routes were eligible for subsidies. Of the 62 remote-island air routes in FY2025, 20 were eligible for national subsidies; measures include subsidies for aircraft purchases and operating costs, as well as reductions in landing fees and the aviation fuel tax.

For wide-area cooperation in FY2025, 40 prefectures set 35 shared goals and produced a total of 83 prefectural plans. As of April 2025, there were 38 regional cooperation core city areas. For dual-region residence, based on the amended law that took effect in November 2024, support is being provided for municipal planning and the development of support organizations, as well as for improving the environment for housing, livelihoods, and communities.

A total of 532 municipalities are designated as heavy-snowfall areas, which account for 51% of Japan's land area. In remote islands, the Amami Islands, the Ogasawara Islands, and peninsula areas, support is provided for industrial development, exchange, and social infrastructure. The Ninth Hokkaido Comprehensive Development Plan sets out food security, tourism nation-building, and Zero Carbon Hokkaido as priorities, while advancing the maintenance and development of production areas and building a resilient national land.