Govt boosts school property funding with first major 5YA increase since 2010

“Since coming into office, we have consistently driven efficiencies in school property delivery so more schools, communities and children benefit sooner,” Stanford said.

The Government has announced a substantial increase in school property maintenance funding—the first rise in Five Year Agreement (5YA) allocations since 2010—ensuring more students can learn in warm, safe and modern classrooms. Education Minister Erica Stanford says the investment represents a major step toward addressing long-standing infrastructure pressures across the schooling network.

“Since coming into office, we have consistently driven efficiencies in school property delivery so more schools, communities and children benefit sooner,” Stanford said. “Investing in maintaining school buildings to get more life out of them is a responsible use of taxpayers’ money.”

The 5YA funding model provides schools with a predictable capital allocation to manage building upgrades, modernisation, and essential maintenance. It covers all state and state-integrated schools across a rolling five-year period and is a cornerstone of long-term property planning.

Beginning 1 July 2026, the Government will implement several major changes:

• Base 5YA funding rate will rise 50%, increasing from $30/m² to $45/m²

• Minimum allocation for small schools will double, from $45,000 to $90,000

• Approximately 450 schools will receive increased allocations in the first year of implementation

• Twenty-four of the smallest schools will see their funding double immediately

The Minister says the changes will give schools greater certainty when planning significant upgrades—something many boards and principals have been requesting for more than a decade.

“This investment will support schools to plan and deliver larger essential upgrades and modernisation over the long term,” she said. “We’re providing schools with greater certainty and flexibility to plan effectively.”

The funding boost builds on the Government’s earlier $58 million one-off maintenance grant, which went directly to more than 2,400 state and state-integrated schools to fast-track smaller projects. The grant has enabled schools to quickly address everyday issues such as:

• Painting and weatherproofing buildings

• Repairing windows, doors and roofs

• Clearing grounds, trimming trees and improving outdoor safety

Stanford says feedback from principals and boards has been overwhelmingly positive, particularly from those who have struggled to stretch outdated allocations to cover real maintenance needs.

“All Kiwi kids deserve to thrive at school, and that starts with warm, safe and dry classrooms,” she said. “Our priority is getting spades in the ground as soon as possible so schools, families and communities benefit.”

The enhanced 5YA system is expected to help reduce long-term property backlogs, improve teaching environments, and extend the lifespan of existing buildings—reducing pressure on major capital builds in the future.