Transitional Support for Strategically Important Provision Fund

Transitional Support for Strategically Important Provision Fund

Last updated 2 March 2026
Last updated 2 March 2026

The Transitional Support for Strategically Important Provision (SIP) Fund supports polytechnics (including institutes of technology) to maintain strategically important provision. This funding is in addition to transitional grant payments from the Minister.

The Minister for Vocational Education delegated to the Tertiary Education Commission (TEC) the establishment of a new fund: the Transitional Support for Strategically Important Provision (SIP) Fund.

The SIP Fund supports polytechnics to maintain strategically important provision during the transition from the New Zealand Institute of Skills and Technology (formerly Te Pūkenga) into a network of regional polytechnics (2026 to 2027). 

SIP funding must be used to support continued delivery of foundation education and strategically important vocational education during the transition.

To view the delegation, see Funding mechanisms and delegations.

Total transitional funding available for polytechnics

Year SIP funding available

Section 556 grant funding 
(Minister distributes)

2026 $10m $10m
2027 $10m $10m

In 2026 TEC allocated $10 million of SIP funding each year. In 2027 we will do the same.

This funding is in addition to the $10 million per year of grant funding (under section 556 of the Education and Training Act) available to support strategically important provision and maintain polytechnic operations during the transition. This funding is distributed by the Minister, not TEC, and has already been decided for both 2026 and 2027.

For background information, see Ten polytechnics established.