Japan’s ruling coalition collapsed after 26 years, following a breakdown in negotiations over a political donation scandal.

Japanese outlets, including Kyodo News and public broadcaster NHK, reported Friday that the junior Komeito Party will end its partnership with the Liberal Democratic Party (LDP).

Komeito Chief Representative Tetsuo Saito told reporters that the situation between the two parties is "far from recovery" and that the LDP's response to its slush fund scandal was "extremely regrettable."

The split comes almost two years after the LDP was accused of hiding more than 600 million yen, or roughly four million U.S. dollars, in slush funds.

It also comes just weeks after Sanae Takaichi, a staunch conservative, became LDP leader—placing her government in crisis even before it launches.

He also criticized Takaichi’s appointment of Koichi Hagiuda, who was implicated in the scandal, as acting secretary general.

Komeito lawmakers are now expected to vote for their own leader in the upcoming prime ministerial election, where the LDP still holds a majority in the lower house.

The collapse may signal a broader political realignment, with the LDP likely to seek new alliances with the Democratic Party for the People or Japan Innovation Party to secure stable governance ahead of next week’s Association of Southeast Asian Nations and Asia-Pacific Economic Cooperation summits.