On the 18th, the government of Japan began serious discussions on how to maintain sustainable operations within municipalities as the country faces a declining population. Many city and town offices are struggling with labor shortages, which have made it increasingly difficult to continue their operations effectively. Over the next two years, the government plans to explore various options for reorganizing and integrating municipal services. They aim to provide an interim report by the end of this year and will potentially revise relevant laws, including the Local Autonomy Act, based on the outcomes of these discussions.

In January, the government established the Local System Research Council to gather expert opinions on the roles and frameworks necessary for sustainable local governments. The inaugural meeting of a specialized subcommittee comprised of experts took place on the same day as the announcement of these discussions. One of the proposals from the Ministry of Internal Affairs and Communications includes allowing prefectures to take over responsibilities such as infrastructure development, including road maintenance and nursing care insurance, which are traditionally managed by municipal governments. This aims to expand operational capabilities through cooperation among neighboring municipalities while still upholding the principle that local administrative services need to be primarily managed by the municipalities themselves.

The conversation around these changes has been sparked by the ongoing challenges to local governance, especially highlighted by the significant legislative changes relating to decentralized governance that occurred with the Comprehensive Decentralization Act in 1999. As Japan continues to face demographic shifts, the government's proactive approach reflects a recognition of the need for structural adjustments in local administrative functions to ensure they remain effective and resilient in the face of declining populations and associated challenges.