Kumamoto earthquake vocational school restoration subsidy raised to two-thirds

The government promulgated the Cabinet Order to Partially Amend the Order for Enforcement of the Employment Insurance Act (Cabinet Order No. 318) in the Official Gazette (Extra Edition) dated September 30, 2026. For facilities and equipment of vocational ability development schools, etc., established by Kumamoto Prefecture that suffered significant damage due to the 2026 Kumamoto Earthquake, the subsidy rate for expenses required for disaster recovery will be increased from one-half to two-thirds, limited to the 2026 fiscal year. The Cabinet Order shall come into effect on the date of promulgation.

This Cabinet Order was enacted by the Cabinet based on the provisions of Article 63, Paragraph 2 of the Employment Insurance Act (Act No. 116 of 1974) and adds a new article (Article 8) to the Supplementary Provisions of the Order for Enforcement of the Employment Insurance Act (Cabinet Order No. 25 of 1975). The promulgation is signed jointly by Prime Minister Sanae Takaichi and Minister of Health, Labour and Welfare Kenichiro Ueno, and the date of promulgation is September 30, 2026.

Increase in Subsidy Rate and Reinterpretation of Eligible Expenses

The core of the amendment lies in the reinterpretation of the subsidy grant provisions targeting the recovery of damaged vocational ability development schools, etc., limited to the 2026 fiscal year.

• Eligible facilities are the facilities and equipment of vocational ability development schools, etc., established by Kumamoto Prefecture under Article 12 that suffered significant damage due to the 2026 Kumamoto Earthquake.
• The subsidy rate shall be applied by reading “one-half” in Article 13, Paragraph 1 as “two-thirds.”
• “Expenses required for the new construction, expansion, or renovation of buildings” in Paragraph 1, Item 1 shall be read as “expenses required for the disaster recovery of buildings that suffered significant damage due to the 2026 Kumamoto Earthquake.”
• “Expenses required for the new construction, expansion, or renovation of machinery, instruments, and other equipment” in Paragraph 1, Item 2 shall be read as “expenses required for the disaster recovery of machinery, instruments, and other equipment that suffered significant damage due to the 2026 Kumamoto Earthquake.”

Effective Date and Legal Framework

The Supplementary Provisions of the Cabinet Order stipulate that this Cabinet Order shall come into effect on the date of promulgation. That is, the effective date is September 30, 2026, and it applies immediately to the grant of subsidies for the 2026 fiscal year.

• The legal basis is Article 63, Paragraph 2 of the Employment Insurance Act.
• The target of the amendment is the Order for Enforcement of the Employment Insurance Act (Cabinet Order No. 25 of 1975), adding Article 8 to the Supplementary Provisions.
• The name of the special measure is “Special Provisions Concerning Subsidies for Expenses Required for Facilities and Equipment of Vocational Ability Development Schools, etc., Related to the 2026 Kumamoto Earthquake.”
• The applicable fiscal year is limited to the 2026 fiscal year.

Earthquake Designation and Affected Areas

The Reiwa 8 Kumamoto Earthquake has been designated as a disaster under Article 2, Paragraph 5, Item 4 of the Small and Medium Enterprise Credit Insurance Act (Act No. 264 of 1950) by Ministry of Economy, Trade and Industry Notice No. 119 (September 18, Reiwa 8). The designation period is from July 28, Reiwa 8, to December 17, Reiwa 8, and the designated area is Kumamoto Prefecture.

• The designated areas include Kumamoto City, Yatsushiro City, Hitoyoshi City, Arao City, Minamata City, Tamana City, Yamaga City, Kikuchi City, Uto City, Kamiamakusa City, Uki City, Aso City, Amakusa City, and Koshi City.
• In the districts, areas such as Misato Town (Shimomashiki District), Gyoku-to Town (Tamana District), Ozu Town (Kikuchi District), Minamiaso Village (Aso District), Mashiki Town (Kamimashiki District), Hikawa Town (Yatsushiro District), Ashikita Town (Ashikita District), and Nishiki Town (Kuma District) are listed.

Toward the Recovery of Vocational Training Functions in Affected Areas

The increase in the subsidy rate will provide financial support for the restoration of buildings, machinery, and equipment at affected vocational ability development schools and similar institutions, leading to the early recovery of vocational training functions in the disaster-stricken areas. This is a temporary special measure limited to fiscal year Reiwa 8, and the target is limited to facilities established by Kumamoto Prefecture.
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• Official Gazette (Extra Edition) September 30, Reiwa 8, Cabinet Order No. 318 “Cabinet Order to Partially Amend the Order for Enforcement of the Employment Insurance Act” (Ministry of Health, Labour and Welfare)
• Official Gazette September 18, Reiwa 8, Ministry of Economy, Trade and Industry Notice No. 119 (Designation of Disasters and Areas Based on Article 2, Paragraph 5, Item 4 of the Small and Medium Enterprise Credit Insurance Act)