McAnulty, who is also MP for Wairarapa, has been named as the Minister for Local Government and Rural Communities.
He takes over the local government portfolio from the embattled Nanaia Mahuta, who retains her foreign affairs portfolio.
Mahuta became embroiled in a scandal of sorts when the entrenchment provision had to be removed from the Water Services Entities Bill late last year by then-Acting Leader of the House, now Prime Minister Chris Hipkins.
McAnulty picks up the rural communities portfolio from Damien O’Connor, who retains his agriculture and trade portfolios.
The reshuffle, signalled at the end of 2022, signals what Prime Minister Chris Hipkins calls the first step in a shift in focus.
“Over the coming days and weeks you will see us put words into action, with policies to support New Zealanders by reprioritising existing programmes to free up resources to help with the cost of living,” Hipkins says.
The reshuffle also sees Forestry Minister Stuart Nash pick up the Oceans and Fisheries and Police portfolios.
Ginny Anderson will take over as the Minister for the Digital Economy and Communications, overseeing the rollout of the Rural Capacity Upgrade.
Justice Minister Kiri Allan picks up the Regional Development portfolio and Dr Ayesha Verrall has been named Minister of Health.