"We're continuing to step up our approach to homelessness because every New Zealander deserves a secure place to live," she said.
She called out the previous National Government for creating a housing crisis and said because of its inaction, a "stop-gap measure was needed".
"We want to make sure we're using public money as effectively as possible while looking after those in need."
She said the Government has been using motels and other "less efficient options" in order to make sure people had the shelter they needed.
More details will be made by Ministers on Thursday she said but did reveal the money would be spent on a range of "immediate and long term actions".
This will include the supply of transitional housing and expanding support for those currently in emergency accommodation, as well as those at risk of homelessness.
"We're continuing to step up our approach to homelessness because every New Zealander deserves a secure place to live."
In May last year, the Government announced details of an almost $200 spending package, aimed at getting 1000 homeless people into homes.
The money has allocated to the Housing First programme in a bid to "break the cycle for long-term homeless people by giving them a permanent, warm and safe home, and support services to help address the causes of homelessness," according to Ardern.