"It doesn't make me feel very good at all to do that because it's going to lessen the opportunity for those students."
Ms Fox said the impact of the funding change would be felt most in smaller and low decile secondary schools.
UCOL Wairarapa campus manager Angela Hewitt said the U-Skills Trade Academy at the Masterton campus this year underwent a doubling in numbers to 60 students, and an extra class was in the offing for next year as well.
"We'll probably get a similar number next year and may even get a few more with the extra course. We're diversifying what we offer and that doubling of student numbers we've seen this year is expected to be repeated again next year. That number seems to be sufficient to meet the need here."
Ms Hewitt said a graphics class was being added to the UCOL Wairarapa U-Skills Trade Academy that will be taught alongside classes in automotive, hairdressing and beauty, hospitality and health.
She said Wairarapa students were also free to sign up for U-Skills classes at UCOL Palmerston North including fashion design and applied technology and design, or at Taratahi Agricultural Training Centre.
Makoura College principal Tom Hullena said he will continue to encourage his students to attend trade academy classes despite the loss of funding.
Mr Hullena said the U-Skills academy provided classes the college was unable to offer.
"As I understand they were funding us too much. But we can still operate on the lesser amount of funding and as far as I'm concerned the trade academies provide additional pathways we can't provide here at school, and if those pathways stimulate kids' motivation and learning, then I'll continue to support them," he said.
Labour education spokesman Chris Hipkins described the funding change as a short-sighted, cost-saving measure.
"Schools will now effectively be penalised financially when they have pupils involved in trade academies, so participation will inevitably be discouraged," he said.