Another $22.5 million has been approved for America's Cup infrastructure, making the total investment $136.5 million.
Economic Development Minister David Parker said the additional funding will help with the Government's long-term strategy, which will include the removal of the tank farm from Wynyard Point in Auckland.
Some of the funds will also go towards new wharf facilities, dredging, and weight barriers.
Mr Parker predicts that the 2021 America's Cup will rake in between $500 million and $1 billion for New Zealand, making it a "worthwhile" investment.
"Overall we think it's in the economic interests of New Zealand to go ahead which is why we funded the additional amount," Mr Parker said.
The extra Government funding is contingent on Auckland Council, which is expected to approve an additional $14.5 million for the event on Thursday.
The funding announcement comes after eight additional notices of challenge for the America's Cup were made on Friday, though some of them will likely be ruled out.
Listen to the full interview with David Parker above.
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