The dust has settled from the 2025 local elections, and there are changes to elected members of council and Mayors across Aotearoa. While the faces may have changed, there is one largely consistent theme: Mayors and councils are placing an emphasis on keeping rates affordable. It’s also on the government’s agenda to put a rates cap plan forward before Cabinet by Christmas. These clear indications from both local and central government to keep rate rises under control could have significant implications for community funding.
Local Government: Priorities and Pressures
Across the motu, newly elected councils are signaling a more cautious approach to spending. For community organisations, this may mean increased scrutiny on how funding is used, with a stronger focus on councils supporting initiatives that can demonstrate cost-effectiveness, measurable impact, and alignment with council priorities.
Encouragingly, community development and funding remain on the radar for many newly elected councils. The Four Wellbeing provisions (social, economic, environmental, and cultural) continue to guide decision-making in several regions, even as legislative winds begin to shift.
The Local Government Amendment Bill: What’s at Stake?
Currently progressing through Parliament, the Local Government Amendment Bill proposes to remove the statutory requirement for councils to promote the Four Wellbeings. Previously, the Local Government Minister has commented that the provisions have led to spending on ‘nice-to-haves’ and an increase in rates. With these provisions removed, central government would expect councils to focus on core services like infrastructure, transport, and waste management.
The Bill passed its first reading on 17 July 2025, with the Select Committee expected to report back by 17 November 2025. If passed, this legislation could significantly reshape local funding priorities—potentially reducing support for non-core community services, and therefore funding for community organisations.
Central Government: Stability Amid Change
At the national level, the funding landscape is also continuing to change. Last week, Oranga Tamariki announced the extension of most contracts set to expire on 31 December 2025 through to 31 March 2027. This move aims to provide stability for providers as the agency begins implementing its new Commissioning and Investment Plan.
For the full update, here’s a link to the document the agency has distributed: PowerPoint Presentation.
Oranga Tamariki also confirmed ongoing collaboration with the Social Investment Agency to better understand impact and outcomes across the social services sector.
Meanwhile, Pathway Two of the Social Investment Fund—focused on contract consolidation—has now closed. The Social Investment Agency is currently seeking community feedback on shortlisted proposals from Pathways 1 and 2. Updates on Pathways 3 and 4 are still to come. You can stay up to date with the agency updates through their website.
Final Thoughts
Significant changes are continuing to unfold across all levels of government funding—from local councils to central agencies. For community organisations and not-for-profits, staying informed and engaged is more important than ever.
We recommend regularly checking in with your local council’s updates, monitoring legislative developments like the Local Government Amendment Bill, and keeping an eye on central government announcements. All these developments could directly impact upcoming funding rounds and long-term planning.
Being proactive and well-informed will help your organisation adapt to changes, seize new opportunities, and continue delivering meaningful impact in your communities.
Strategic Grants can support you to stay adaptable – follow us on LinkedIn to keep up to date on grant trends and funding changes, and use the Best Practice Tracker to build capability around how to grow and sustain a strong grants program!
About the author
Emma Redgrove is a Grants Strategist at Strategic Grants, with over seven years of experience across government, consulting, and the for-purpose sector in New Zealand and the UK. She specialises in helping charities navigate complex funding landscapes through government funding, strategic partnerships, and best practice grant-seeking, with deep expertise in social investment, impact measurement, and communicating social return on investment. Emma has worked alongside national and community-led charities to strengthen outcomes measurement and funding strategy. She is passionate about empowering organisations to secure the resources they need to achieve meaningful outcomes.