The revised Diet members’ allowance law has been passed and will come into force in August 2025, requiring national legislators to disclose their use of the monthly 1-million-yen (about $6,400) allowances provided to them for research, public relations and accommodation.

It is only natural to widely disclose the use of funds related to politics to the public. The unchecked use of such money, as if it was a privilege among legislators, must be reformed.

The allowance, formerly known as the “documents, communication, transport and accommodation grant,” was introduced to expenses cover including postal and phone charges began through political activities, and legislators did not need to disclose receipts. It was given separately from their salaries and essentially used at their discretion, leading it to be dubbed a “second wallet.”

Momentum for reform grew in 2021 when, after a House of Representatives race, legislators who assumed office after their election at the end of the month were paid the full monthly allowance.

Following a 2022 legal revision, the payment system was adjusted to a per diem basis. The scope of eligible expenses was expanded to include national policy research, public relations and interactions with the public, and the allowance was renamed accordingly.

However, the lack of transparency persisted, and amid growing public criticism of political funding, calls for requiring a disclosure had intensified.

With this latest amendment, legislators will now be required to submit annual reports specifying the use of the allowances, along with copies of receipts, to the speaker of their respective house, and these documents will be made public. Any unused funds must be returned to the national treasury.

While these changes aim to enhance transparency, challenges remain.

Building a system to operate these rules, such as detailed scope of permissible uses and the specific methods of disclosure, has been postponed for future consideration.

It has been pointed out that currently many expenditures, such as personnel costs for personal secretaries or office rents, fall outside the intended scope of the law. There have even been cases where allowances were used to purchase household appliances.

Many political parties are reluctant to strictly define the scope of allowable uses. However, since the resources for these allowances come from taxpayer purposes, spending them on unrelated cannot be permitted.

Digitalization is also crucial. To make oversight easier for the public, data should be disclosed in a format that allows for easy searching, classification and organization.

In response to the slush fund scandal involving Liberal Democratic Party factions, the revised Political Funds Control Act, which fully abolishes policy activity funds, and other related laws were also passed, and the extraordinary Diet session has concluded.

However, many issues surrounding “money in politics,” including the monthly allowance, remain unresolved and have been deferred to next year. Both the ruling and opposition parties must tackle these remaining challenges head-on.