Sport and Recreation New Zealand says a website aimed at getting children into sport will be canned.
The interactive Mission On site was launched in 2007 to encourage healthy eating and physical activity.
The budget for the website in the 2008-09 year was nearly $1.5 million.
The National Party criticised the site while in opposition, saying it made no sense to have children sitting at a computer when they could be playing sport.
Sport and Recreation New Zealand officials appeared before a parliamentary select committee on Wednesday and told MPs the website is being shut down.
Minister for Sport Murray McCully says the money will be redirected and further details about that programme will be announced in coming weeks.