Youth "can experience higher levels of distress when taken out of normal learning environments," Little said, and may also be dealing with transient housing and employment.
"This is why we have moved quickly to make funding available for community-led initiatives that focus on supporting mental resilience and wellbeing when youth need it most," he said.
"Mental health is an important part of the Government's response to Covid and vital in laying the foundations for a better future for New Zealand."
Applications for the fund open tomorrow and close on September 6. Funding will be released in coming weeks, Little said. Details will be available on the Ministry of Health website.
The grant will seek proposals from small community-based mental wellbeing providers who can also demonstrate how the proposed services will aid young people facing inequities in mental health and well-being.
Groups being looked at in the funding include but are not limited to rangatahi Māori, Pacific young people, LBGTQIA youth, refugees and migrants, the ministry said.
"Investing in these community-led initiatives means support is tailored to the people that need it, that services are easily accessed and they are available as soon as possible," Little said.
The Government also acted to support students last October who were struggling to return to school during the pandemic.
- RNZ