Local governments have utilized COVID-19 grants for a diverse range of projects, including infrastructure improvements and tourism initiatives. An Asahi Shimbun study revealed that many of these projects focused on outdoor activities, such as camping, cycling, and fireworks displays.
The grants were initially intended to revitalize local economies impacted by the pandemic. However, local governments were later given discretion to use the funds for a broader range of activities deemed "COVID-19 measures."
In fiscal 2020, 3.7 trillion yen was allocated for local independent projects, with the amount reduced to 1 trillion yen the following year. The grants have also been expanded to include measures to address rising prices.
One notable example of the grants' use is the "Fukui titan" dinosaur monument in Minami-Echizen, Fukui Prefecture. The monument, which cost 90 million yen to build, received 50.76 million yen in COVID-19 grant funding. The remaining 40 million yen was covered by the prefectural budget.
The monument's construction was justified as a tourism promotion project, despite regulations prohibiting the use of grants for infrastructure development. The prefectural government cited the monument's success in attracting tourists, with a 95% increase in visitor numbers in 2022, the year it was built.