The previous Prime Minister and DPJ president, Yukio Hatoyama resigned on 2 June 2010 on the background of an unpopular deal with the United States to retain the American military base in Okinawa and the DPJ's low poll numbers.

[1] The new prime minister conducted a cabinet reshuffle and promoted some senior party members to important portfolios, notable Yoshihiko Noda to the Ministry of Finance and Yoshito Sengoku to the Cabinet Secretariat.

In spite of a temporary recovery in approval ratings, the government lost its majority in the House of Councillors in the July 2010 election and was subsequently dependent on parts of the opposition for getting any bill through the now-divided Diet.

His government poorly handled the response to the massive earthquake and tsunami in northeast Japan.

Reversing the pro-nuclear policy of the previous administrations, Kan's government pushed for a conversion to renewable energy and eventual shut-down of Japan's nuclear plants.