The decision, announced in the Northern Ireland Office's recent Priorities and Budget 2005-2008, was met by criticism from children's organisations.
The fund, created in 1992, currently has a budget of 5m covering 2004 to 2007, the last year in which money can be spent. Pauline Leeson, director of Children in Northern Ireland, said: "We need a children's minister to safeguard children's interests."
More than 100 projects are under threat, including ones run by Barnardo's, Mencap, NCH and Niacro. The European Union's Peace II funding is also due to end in 2006. Peace II supports various reconciliation projects throughout Ulster.
The Northern Ireland Office has, however, increased the province's health and education budgets by 23 and 11 per cent respectively to allow more "mainstreaming" of projects. The new 15m Capital Modernisation Fund will also be open to youth organisations.
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