Worth $850,000, Te Kīwai Fund will allow young people between the ages of five to 18, to receive $300 each to support their sporting endeavours.
Māori Development Minister Willie Jackson attended the launch at Te Pā o Rākaihautū School in Linwood, Christchurch.
He said it was hard seeing young Māori unable to participate in sporting activities due to cost.
"I want to see families get that opportunity. Through life you see so much potential in Māori kids… to see kids walking away from sport at 13, 14, 15, is just not right."