The New South Wales government is refusing to guarantee an extension of the Active Kids voucher program beyond next month.
The scheme was introduced by the previous Coalition government in 2018 and gives parents and carers access to two $100 vouchers for their school-aged children to participate in a sport or recreational activity.
A voucher is available until the end of this financial year, with the Minns government under increasing pressure to maintain it.
Both Queensland and Victoria have equivalent schemes to help cover the cost of sports and active recreation, with up to $150 per year on offer in Queensland, and $200 in Victoria.
The government says money has not been allocated beyond this financial year to fund the vouchers.
But it is yet to make a decision on whether the program will be continued.
During question time in parliament on Thursday, the new Sports Minister Stephen Kamper faced a barrage of questions from the opposition.
He responded by claiming the Coalition had "defunded" the program by not setting aside further funds.
"This is a group that was throwing money round like confetti but left nothing for the kids," Mr Kamper said.
He said a review into the program was underway, but there were budget constraints.
"Obviously any funding to struggling families is always appreciated by the community," he said.
"But what the community doesn't appreciate … is when a government like your old government mismanages the funds of the state."
The Coalition has pointed to figures that almost 5 million vouchers have been redeemed, saving families more than $480 million.
Opposition Leader Mark Speakman said his government planned to continue and expand the program had they won office.
"This is a program that must continue. It must continue for the sake of family's hip pockets and it must continue for the sake of kid's health and wellbeing," Mr Speakman said.
He said about 70 per cent of children were not meeting the guidelines for physical activity.
"Please don't cut Active Kids."
National Party Leader Dugald Saunders told parliament that about 80 per cent of registrations for a netball club in his electorate of Dubbo come through the Active Kids program.
The voucher program is an opt-in scheme that is not means-tested.