New Zealand First leader Winston Peters wants to give parents $5,000 a year for each of a child's first three years. He announced the policy — called the "Kiwi Kids Grant" — at a public meeting in Masterton on 2 August 2026.

The payment would be tax-free, capped at three children per family, and total $15,000 per child. One parent would need to be a New Zealand citizen to qualify. Peters said Inland Revenue would handle the payments.

New Zealand First says the policy would cost $400 million over three years. That money would come from existing government budgets, not new spending.

Peters said New Zealand faces a "population precipice" — meaning the number of citizens having children has fallen so much that the country's future population is at risk.

The announcement came with other party news. Former Defence Minister Ron Mark is returning to New Zealand First and will stand for Parliament in the Wairarapa electorate at the election. Mark was a cabinet minister in the previous Labour–New Zealand First government.

ACT leader David Seymour pushed back quickly. He said many countries have tried paying people to have children and it has not worked. He also pointed out that an existing support package — Working for Families — already gives a similar amount of help to a family with one income of $100,000.

Working for Families is a set of government payments and tax credits that started in the mid-2000s. It gives money to families with children, based on how much they earn. NZ First's grant would be on top of that, not a replacement.

The broader context here is whether cash payments actually encourage people to have more children. Several countries, including Hungary, have tried similar policies in recent years. Researchers disagree on whether these payments make a lasting difference to birth rates. Seymour's response suggests this question — not just the cost — will be part of the election debate.

For NZ First, the policy does two things. It gives the party a clear family-focused promise for the election. It also fits with the party's long-standing view that population growth should come from citizens having children, rather than from immigration. The rule that one parent must be a citizen reflects that.

Mark's return matters for how the party could win seats. In New Zealand's voting system, MMP, a party gets into Parliament either by winning 5% of the national vote or by winning a single local electorate. NZ First has always done better in Wairarapa than across the country as a whole, and Mark has a personal following there from past campaigns. If the party is close to but not quite at 5%, winning Wairarapa could be what gets them into Parliament.

The Kiwi Kids Grant is still just a proposal. To become real, it would need Cabinet approval, new laws, and funding passed through the annual Budget.