Sanae Takaichi Reshuffles Cabinet to Bolster Coalition and Spending

Prime Minister Sanae Takaichi executed a two-stage leadership overhaul of the ruling Liberal Democratic Party (LDP) and her cabinet between September 15 and 17, 2026. The reshuffles aimed to stabilize her administration amid sagging public support and market volatility over her expansionary fiscal policies.

On Wednesday, Takaichi revamped the LDP executive lineup, prioritizing continuity by retaining Vice President Taro Aso and Secretary General Shunichi Suzuki. Key changes included Hiroshi Kajiyama replacing Haruko Arimura as head of the General Council and Kazuhiko Aoki replacing Junichi Ishii as upper house secretary-general. Takaichi stated these moves were intended to "establish an implementation framework under which the government and the LDP can go all out."

On Thursday, Takaichi reshuffled her cabinet, replacing 10 of 18 ministers. She retained core figures in finance, diplomacy, and defense, including Finance Minister Satsuki Katayama, Foreign Minister Toshimitsu Motegi, and Defense Minister Shinjiro Koizumi. To strengthen her coalition, she appointed Hiroshi Nakatsuka of the Japan Innovation Party as the minister in charge of deregulation, marking the first time the junior partner has held a ministerial post.

The new lineup prepares the government for an October parliamentary session to debate a controversial plan to cut the consumption tax from 8% to 1% for two years. Takaichi also intends to update security documents to increase offensive capabilities against China, North Korea, and Russia, while managing pressure from bond markets and the United States regarding Japan's high public debt.