From next year, the government expects all public schools to teach students to read in a "proven structured literacy approach".
The pre-Budget announcement was made by Prime Minister Christopher Luxon and Education Minister Erica Stanford on Thursday afternoon.
It comes after the government this week announced its six education priorities.
Stanford said the approach would change the way Kiwi children learnt to read, improve achievement and set students up for success.
It taught children to read by using sounds and phonics to understand words, she said.
"Being able to read and write is a fundamental life skill that too many young people are missing out on. Recent data shows that just 56 percent of Year 8 students are at the expected level for reading, and just 35 percent for writing.
"Domestic and international evidence shows this method is the most effective way of equipping children with strong reading skills that are critical for their futures."
Stanford said a number of schools already teach reading in this way and there had been "significant improvements" in achievement.
She said she wanted all children to experience that.
"This government has set an ambitious target of getting 80 percent of Year 8 students to curriculum level by 2030, and teaching structured literacy is a critical part of how we plan to get there."
The government was putting $67 million, as part of Budget 2024, into supporting:
- Professional development on structured literacy for teachers;
- Books and resources for schools and teachers;
- Introducing phonics checks to assess student progression;
- Additional support for students that need it.
Stanford said structured literacy went hand-in-hand with the government's requirement for schools to teach an hour every day of reading, writing and maths.
"Today's funding announcement ensures teachers will receive the training, support and resources they need to deliver this.
"Our teachers are amazing and we are supporting them to deliver improved outcomes in reading and writing."
The new approach would be in place from term one of 2025.
The government's budget will be unveiled in full on 30 May