The ACT is set to fund inpatient beds and establish a new critical care team at Canberra Hospital in an effort to expand the territory's paediatric services.
As part of the funding boost, the hospital will see eight paediatric beds to house unwell children during their treatment and care.
The incoming critical care team, the government announced on Monday, will offer expertise in paediatric care, and help support and upskill existing hospital staff.
Other resources will go towards expanding multidisciplinary rehabilitation services for children with complex and chronic conditions who are looked after between local and interstate hospitals.
The government is also investing $18 million into Canberra Hospital's neonatal intensive care unit and special care nursery to support critically unwell newborns.
Chief Minister Andrew Barr said the total investment into health next year was $2.6 billion, up from $2.3 billion in 2023-24.
"The ACT government is making record investments in public healthcare to ensure Canberrans can access the right care, when and where they need it," he said.
"This budget commitment to expand paediatric health services builds on this government's previous investments in both inpatient and outpatient health services specifically for the youngest members of our community."
Overall, about $57.6 million of new funding is going into expanding the ACT's paediatric services.
"The Child and Adolescent Clinical Services Plan sets out a vision that children have access to a high-quality health system that enables them to live their best and healthiest lives," Minister for Health Rachel Stephen-Smith said.
"These investments are another step to ensuring we fulfill this commitment."
Ms Stephen-Smith said government initiatives also aimed to expand the paediatric medical, nursing and allied health workforce.
"This includes upskilling emergency department staff and launching the new Child and Adolescent Hospital in the Home Program," she said.
Young patients in that program are visited and treated in their homes by paediatric nurses.