The Ministry of Internal Affairs and Communications announced on Oct. 26 that it will allocate a total of 35.54 billion yen in base-hosting and adjusted subsidies for fiscal 2018 to 297 municipalities in 45 prefectures including Tokyo and Hokkaido, as well as to Tokyo’s metropolitan special wards, which are home to U.S. military and Self-Defense Forces facilities. The total amount is the same as that of last fiscal year. The subsidies will be provided later this year.

In the breakdown of the allocations, base-hosting subsidies amount to 28.34 billion yen, with adjusted subsidies at 7.2 billion yen. By municipality, Iwakuni City in Yamaguchi Prefecture, where the number of U.S. military-related facilities has increased due to the realignment of U.S. forces in Japan, receives the largest amount at 2.4 billion yen, followed by Yokosuka City, Kanagawa Prefecture, given 2.28 billion yen, and Misawa City, Aomori Prefecture, at 2.1 billion yen.

Municipalities cannot impose fixed property taxes on government-owned lands used by the U.S. military and the SDF. So the central government pays subsidies according to asset prices and financial situations of subject municipalities to make up for a revenue shortfall.