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The new South Auckland hospital has received a boost, with funding to secure land for a new hospital in Drury included in Budget 2026.
Port Waikato MP Andrew Bayly says this is a major step towards improving access to healthcare for one of New Zealand’s fastest-growing regions.
“Budget 2026 takes an important step towards a new hospital in Drury, giving families across South Auckland and North Waikato confidence in their future healthcare.”
The budget allocated $680 million in capital spending for health infrastructure, including a new 158-bed ward at Whangarei Hospital, work at hospitals in Tauranga, Hawke’s Bay, and
Palmerston North, and the buying of land for the new Drury hospital.
“This is about making sure our health infrastructure keeps up with population growth, so people can access care closer to home. For too long, families in our communities have had to travel further than they should for hospital treatment – this investment starts to change that.
“This is an important step, and there will be more details to share soon.”
Health was the big winner in the budget, with $5.8 billion in new spending. That includes a $5.5 billion increase in frontline services over four years. In addition to the $15.5 million already announced for paediatric palliative care, there is also $34 million for three-day postnatal stays, and $33 million to extend the eligibility for bowel screening to 56 years of age, from 58.
Another $930 million will go towards new clinical equipment, tech upgrades, and facility
improvements nationwide.
Transport Minister Chris Bishop announced $1.77 billion will be spent on extending the four-lane Waikato Expressway (SH1) 16 kilometres from Cambridge to Piarere Road. The
government is also putting $1.075 billion into KiwiRail’s network from 2027-2030 and $107m into rail upgrades in cities.
The government is introducing new school curricula and a new secondary school qualification,and the Budget allocates about $240 million for that work, including teacher training and resources. It also provides $69 million over four years to double the number of secondary school students attending Trades Academies to 20,000 by 2030.
The government also expects to collect just over $200 million over four years from banks,
insurers and other finance industry companies from a new levy intended to cover the costs of services provided by the Reserve Bank.
