A total of $1.2 million was given in grants to 3907 released prisoners in the form of the Steps to Freedom re-establishment grant.
A number of grants were paid for school-related expenses, including $64,614 for uniforms, $9638 for stationery and $1532 for administration or examination fees.
NZ First social policy spokeswoman Asenati Lole-Taylor said it was difficult to justify the amount of public money spent on vasectomies.
"Why should the population in New Zealand pay for something that is supposed to be a personal expense? It's astounding really.
"We're struggling with our economy at the moment ... yet our welfare system is handing out these grants for vasectomies and I can't see how that can be considered a priority."
Work and Income chief executive Debbie Power said the department contributed $300 towards vasectomy surgeries and associated costs such as travel and accommodation, depending on the applicants' finances.
A person could receive a grant to assist with the cost of laser birthmark removal if a doctor classified the mark as disfiguring and visible in normal clothing, Ms Power said.
Payments for wigs were available for people who suffered from a medical condition or were undergoing treatment that made a hairpiece desirable.
People who have received hardship assistance on three or more occasions in a 12-month period are required to show they have taken reasonable steps to increase their income, reduce their costs or improve their financial management.
Special-needs grants paid out in the first six months of the year
* $830 - Abortion fees
* $2710 - Funerals
* $7033 - Wigs and hairpieces
* $6659 - Vasectomies (20)
* $33,000 - Dentures, glasses and hearing aids
* $46,273 - Effluent treatments at homes
* $64,614 - School uniforms
* $247,137 - Doctors' fees, including two removals of birthmarks
* $6.3 million - Emergency dental treatment
* $1.29m - Released-prisoner grants
* $19.1 million - Food
Total: $32.9 million (not all areas represented above)