UPDATE: It has been revealed Awakino Gorge will be allocated a $50m portion from this fund.
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Taranaki and Waitomo communities are set to benefit from a major infrastructure boost following today's Budget 2026 announcement.
Finance Minister Nicola Willis and Infrastructure and Transport Minister Chris Bishop unveiled a $400 million capital package designated for state highway resilience projects, with State Highway 3 through the Awakino Gorge earmarked for critical upgrades.
The funding is specifically aimed at strengthening vulnerable transport routes that are frequently cut off during severe weather events.
In today's announcement, Bishop said the Government strategy is to reinforce vital infrastructure before disaster strikes.
He noted officials know where the weak points on the network are, and this investment allows them to strengthen these areas before roads fail rather than repeatedly paying to rebuild them.
Bishop added that the impacts of closures on critical routes like SH3 extend far beyond the immediate area, severely affecting communities, freight supply chains and the tourism sector.
For Taranaki locals and freight operators, the inclusion of the Awakino Gorge is a welcome relief following a frustrating two months of severe disruptions on the main northern artery.
Over the past few months, the gorge has been plagued by severe slips and challenging conditions, exposing the vulnerability of the route.
Following a major slip in mid-April, the road was reduced to single-lane access under tightly controlled, scheduled convoys.
For weeks, contractors battled active underslips and tough terrain, forcing daytime closures and night-time-only convoys just to clear debris safely.
NZTA Waka Kotahi was finally able to open the gorge to 24/7 access under two-way and stop/go traffic management last Friday, May 22.
Temporary speed limits and delays of up to an hour remain a reality for drivers as repair crews continue their work.
The new Budget 2026 funding aims to mitigate exactly these types of prolonged closures and keep the crucial link between North Taranaki and the Waikato secure.
Alongside SH3, the $400 million package will fund proactive improvements on several other notorious stretches of road across New Zealand, including SH2 through the Waioweka Gorge, SH25 around the Coromandel Peninsula, SH60 over the Tākaka Hill, SH6 between Cromwell and Kingston as well as Haast and Hāwea, and SH94 between Milford and Te Anau.
The Budget also sets aside funding for improved hazard information systems. This includes developing the first comprehensive New Zealand Flood Map to help infrastructure providers and councils make smarter, long-term planning decisions.
