Nearly 90 percent of eligible schools have agreed to stop asking parents for donations in exchange for receiving $150 per student every year from the government.
New figures released today show 1563 schools have opted in to the optional scheme for 2020, leaving only 182 still operating under the old model. The donations scheme is open to all schools throughout the country up to decile seven.
The uptake means the programme will cost the government almost $62.5 million next year.
In a statement, Education Minister Chris Hipkins said the families of more than 416,000 students would be better off as a result.
"We know how difficult it can be for parents to afford the donations that schools request. Our scheme will take significant financial pressure off many kiwi families," Mr Hipkins said.
"It's a win for schools and families. Students will get to enjoy the benefits of the additional funding without families feeling under pressure to find the money within their own household budget."
Schools which have so far elected not to sign up could still change their mind in subsequent years.
"We know that every community is different and I'm pleased that we've been able to recognise that by giving decile 1-7 schools the opportunity to decide on the best funding option for themselves and for their communities this year and in future years," Mr Hipkins said.
More financial advisors would also be available at the ministry to support schools who need advice, he said.
The final count comes after some consternation from mid-decile schools, many of which were concerned they'd be considerably worse off under the new scheme.
Schools boards had until 14 November to decide whether to take up the government's offer.