More than 9000 students from 220 performance groups from 60 high schools around Auckland took part in this year's event, which regularly attracts up to 90,000 spectators each year.
Ngaro said the festival helped to connect young Pasifika people with their heritage and to strengthen ties to their cultural identities.
"Our young people gain confidence, leadership and many other skills that set them up for a lifetime of success. We want to see the festival grow even stronger and have more Kiwis taking part and celebrating Pacific diversity.
"As the Pacific population is the youngest and fastest-growing in New Zealand, it becomes even more important that we strengthen Pacific languages, cultures and identities," he said.
"Polyfest is a perfect example of how we might achieve that."
The Polyfest Trust chairman, Patrick Drumm, was thankful for the grant and said it would help to continue the work that the festival promotes - the opportunity for young people to celebrate diversity and their identities.