However, there is anger among local politicians that only three of the 21 projects to receive funding are from the South Island.
They are Lakes District Hospital, in Queenstown, Burwood Hospital, in Christchurch, and Ashburton Hospital.
Dunedin Labour MP Rachel Brooking and Taieri Labour MP Ingrid Leary said they were "angry and extremely disappointed, but not surprised" by the government’s announcement yesterday.
"The fact that only three projects made the cut from the whole South Island once again shows how this National government continues to deprioritise us," Ms Leary said.
Health Minister Simeon Brown said the funding would allow Lakes District Hospital to expand its emergency department, as well as improve patient flow with a dedicated ED entrance, expansion of triage space and additional points of care.
The funding, as part of Budget 2025, formed part of the government’s wider plan to restore core public services and deliver timely, quality healthcare for all New Zealanders, he said.
"We are backing our hospitals with the upgrades they need — expanding clinical spaces, addressing urgent problems and ensuring facilities are fit for purpose, both now and into the future."
The $100m programme would be delivered through two key streams, he said.
In the first, funding would be given to 21 local projects across the country to expand and modernise clinical spaces and supporting services.
In the second, funding would be put towards a remediation programme focused on strengthening essential infrastructure and reducing the risk of disruption to clinical services.
Each of the projects would reflect local priorities, which included increased clinical space in emergency departments; new transit lounges; additional clinical spaces; laboratory refurbishments; and additional car parking, he said.
"Every project will make a real difference for patients and staff — whether that means shorter emergency waits, faster cancer treatment, more timely elective surgery or improved access to services."
Alongside the local upgrades, the funding would support nine remediation programmes across hospital facilities.
"These works will strengthen the critical infrastructure that keeps hospitals safe and reliable — including heating, power, hot water and air conditioning.
"By tackling urgent risks and building resilience, we are ensuring hospitals can deliver the care New Zealanders rely on, every hour of every day."
The projects would also support jobs across the construction sector nationwide, most set for delivery next year, some extending into 2027, Mr Brown said.
Labour health spokeswoman Ayesha Verrall said the government put less into hospital infrastructure in its last Budget than Labour did.
"Today’s announcement is a bundle of routine maintenance and minor upgrades, but insufficient to meet the needs of a growing and ageing population.
"Hospital infrastructure will continue to get worse under Christopher Luxon."
