Photo/Illutration Prime Minister Fumio Kishida at the prime minister’s office on Sept. 7 (Koichi Ueda)

The government is preparing to provide cash handouts to families struggling to make ends meet as energy costs and food prices continue to soar, according to sources.

About 16 million households exempt from residential taxes will receive 50,000 yen ($350) each under the new subsidy program, the sources said.

To fund the program, the government will allocate roughly 900 billion yen from reserve funds, which do not require Diet deliberations before being utilized, according to the sources.

The government will coordinate with the ruling coalition to draft the program before making an official decision at a Sept. 9 meeting of a government task force tackling the rising commodity prices, the sources said.

Prime Minister Fumio Kishida intends to compile additional measures against higher prices, he said during his visit to Niigata on Sept. 4.

Prices for food and other daily necessities, as well as electricity bills, have been rising following Russia’s invasion of Ukraine and the recent sharp depreciation of the yen.

Kishida also instructed government officials to keep imported wheat prices unchanged when selling it to flour milling companies from October.

The prime minister is also considering extending the deadline for the subsidy program aimed at curbing rising gasoline prices, set to expire at the end of September.

Government officials were also discussing new support measures for those in need.

Kishida previously announced that his government plans to review and increase temporary subsidies for local revitalization, which allow local governments to decide how to spend the money.

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