Budget 2016 will give $86 million in tuition subsidies to tertiary providers who offer science, agriculture, veterinary science and undergraduate medicine.
It will also give an extra $36 million for sub-degree courses (most commonly taught at polytechnics) - the first increase at that level for around five years.
There will also be extra funding for apprentices, free foundation courses, workplace literacy and numeracy and a suite of innovation initiatives in the university sector.
Minister for Tertiary Education, Skills and Employment Steven Joyce said there would be $256 million for tertiary and apprenticeships in total.
He also allocated $410 million for science and innovation, and $96 million for regional economic development in a package labelled "Innovative New Zealand''.
"[These initiatives] will help diversify the economy, and support more jobs and higher wages for New Zealanders in the decade ahead,'' Mr Joyce said.
Much of the funding was aimed at growing the science system, making STEM subjects a priority.
Initiatives in the "science and innovation'' boost including $113 million for the new Endeavour Fun, a re-purposed contestable fund that has been re-focused towards longer-term, high impact, mission-led programmes of science.
There was also extra money for the Marsden Fund, Antarctica New Zealand, and the Strategic Science Investment fund, among others.
