Tertiary institutions Unitec and Whitireia are getting multi-million dollar boosts to stay afloat.
The Government is loaning Auckland's Unitec Institute of Technology $50 million, while educational institution Whitireia is getting a $15 million capital injection.
Education Minister Chris Hipkins says urgent support is required.
An independent financial advisor was appointed to Whitireia in July to provide expert financial management.
Unitec came under fire recently over claims of mismanagement. A cost-cutting scheme by the university was heavily criticised in a Tertiary Education Union (TEU) commissioned report.
- Government set to appoint Commissioner at Unitec
- Damning claims about Unitec's restructuring in new report
The report earlier this month found the leadership team replaced staff with contractors and rejigged entire departments despite warnings not to.
However, Unitec claimed the report contains inaccuracies and "entirely unsubstantiated" speculation.
Senior leaders at Unitec announced the restructure in 2015, saying at the time the changes would lead to better employment prospects.
"Over time, students will benefit from much more flexible study options designed to meet the needs of their future employers," former chief executive Rick Ede told Stuff.
But the TEU's national president Sandra Grey believes the changes would never have worked.
"Education is not like a business that sells a single product - it's a very complex business," she told Newshub.
Unitec says it has been impacted by a sector-wide decline in student numbers over several years and a drop in revenue, combined with strong investment to modernise its infrastructure.
It is now focused on achieving a return to surplus.
Newshub.
