Budget 2026 for tertiary sector

Budget 2026 for tertiary sector

Last updated 28 May 2026
Last updated 28 May 2026

The Vote Tertiary Education Budget 2026 package provides $407 million in operating funding over the next four years for tertiary education.

This year’s investments support providers to continue to enrol learners and helps provide a base for ongoing financial sustainability.

The Minister for Regional Development, Minister of Education and Minister for Tertiary Education have announced the key initiatives in the tertiary education Budget package.

Ministers' media release – Budget doubles trade training opportunities (PDF, 130 KB)

Tertiary Education

The following are the key initiatives in the Tertiary Education Budget package.

Cost pressures

  • Funding Additional Demand in 2026 and 2027 – $284 million
  • 6% Annual Maximum Fee Movement – which enables providers to lift fees for learners by up to 6% for 2027

Fees Free

  • Ending the final-year Fees Free scheme – savings of $1,033 million

Reprioritised funding from Fees Free to support fees free vocational education

  • Funding up to 1,000 Additional Youth Guarantee Places – $87 million  
  • Increases to Foundation Education Subsidies – $24 million

New spending

  • Industry Skills Boards – $3 million

Tertiary initiatives

Budget 2026 initiatives include funding for forecast volume and funding for additional Youth Guarantee places.  

Budget 2026

More information

For a list of Budget 2026 investments which include Vote Tertiary, visit the Treasury website.

Budget 2026 summary of Initiatives – Treasury.govt.nz