Through partial amendment of the National Theatre Law, the National Theatre (a special corporation) is reorganized and renamed The Japan Arts Council (also a special corporation). Later that year in 1990, the Japan Arts Fund is established.

The Japan Arts Council performs the following functions:

Promotion of the Japan Arts Fund
Grants are issued after evaluation of applicants for the following kinds of activities: those designed to foster and disseminate the creative work of artists and artistic groups; those promoting regional culture; and those designed to promote and disseminate the work of cultural groups.

Management of the National Theatre
The main buildings of the National Theatre, Engei Hall, Noh Theatre, and Bunraku Theatre offer public access to Japan's traditional performing arts, training of folklore artists, study and research, collection and exhibition of data, and general public access to theatrical facilities.

Management of the New National Theatre
In order to plan for the promotion and popularization of modern performing arts, the Japan Arts Council collects, stores, and makes available to the public materials and information regarding modern performing arts in conjunction with the performance of modern performing arts, training of performing artists and stage technicians, etc., and general utilization of theatrical facilities.