Labour's health spokeswoman Annette King said the funding would be better spent on improved access to primary health care.
Ms King said if patients went to their primary health care providers, other illnesses of poverty such as respiratory illnesses and skin infections, would be picked up.
The disease, which is associated with poverty, poor access to healthcare and overcrowding, has unusually high rates in New Zealand's poorest communities, especially among Maori and Pacific children.
The fever, an inflammation of the heart, results from an abnormal reaction of the immune system against a throat infection from the group A streptococcus bacteria.
It can cause scarring of the heart valves and usually affects children aged 5 to 14.
While the prevalence of the disease among Pakeha has declined in the last few decades to be almost non-existent, rates for Maori and Pacific children have remained high.
Budget funding will include:
* $11.25m over four years for sore throat drops in clinics.
* $4.72m over four years for an awareness campaign.
* $1.6m for research on a rheumatic fever vaccine.
* $3.75m over four years towards an Auckland-wide health homes referral and advice service.
