The $4 million grant, coming on top of nearly $1 million announced in May, means more than $5 million will be injected into the economies of Cootamundra and Gundagai in coming months.

The cash injection was announced by the member for Riverina and deputy prime minister, Michael McCormack, on Monday.

Mr McCormack said the money was designed to create jobs and boost the local economy local economy "at a time when it is needed most".

"I'm proud to be part of a government that has supported regional areas as the Covid-19 pandemic has unfolded," Mr McCormack said.

By far the biggest ticket item, costing $823,550, will be the much-needed resurfacing of MacKay Street in Cootamundra, leading from the hospital to the roundabout at Hovell Street.

"MacKay Street pavement will be rehabilitated to provide an acceptable standard of road surface as well as improving drainage," the announcement said.

In Cootamundra township, Cooper Lane, which runs from Adam to Wallendoon Streets, will have edge breaks and pavement defects repaired to restore road condition, at a cost of $251,160.

The remaining five projects in the Cootamundra district are rural roads, namely Berthong ($294,431), Kilrush $278,361), Old Gundagai ($276,850), Rosehill ($259,975), and Milvale ($259,849) Roads.

These will mostly involve repairing edge breaks and pavement defects to restore road condition, except the unsealed Milvale Road, which will be newly sealed to reduce maintenance.

Overall, there was a 60/40 split between Cootamundra and Gundagai, with Cootamundra getting $2,444,176 of the total $4,073,926.

It comes just weeks after the Federal Government's Local Roads and Community Infrastructure Program announcement, which will provide a further $985,552 to stimulate the local economy in the Cootamundra-Gundagai Regional Council area (see story page 5).

Mr McCormack said Cootamundra-Gundagai Council submitted a shortlist of projects which they deemed as "shovel ready".

Mayor Abb McAlister said the funding would bring a "lot of joy" for the community.

"It will help address a backlog of roadworks which are needed to improve road safety in our region," Councillor McAlister said.

At the council's meeting last week, he described as a 'Godsend' an earlier federal government grant of $985,552 for maintenance and upgrading of local roads, footpaths, bridges and infrastructure and boost the economy post-covid.

General manager Phil McMurray said it was "pretty good news" that it was delivered on the same basis as the council's Roads to Recovery program, so there was flexibility on how council could apply it.

The arrival of the grant coincides nicely with a new report on the state of the council's roads and infrastructure.

This report, prepared by Melbourne company Moloney Asset Management Systems, follows up on previous reports in 2016 and 2018 by the same company.

It integrates information from both former shires, giving a detailed picture of the condition of all roads, footpaths, bridges and infrastructure, with projections on expenditure needed to maintain and improve them.

"I'm suggesting we decide on how to spend it after we get the Moloney Assets Report which gives you a good idea of where road, bridge and footpath expenditure is required," he said.

Owner of Moloney Asset Management Systems, Peter Moloney, met council officers the day after last week's meeting to discuss a final draft of the report, which he said on Monday he expected would be submitted this week after some minor alterations.

Cr Gil Kelly said regardless of the Moloney report he was "just hoping we could find the money this year to fix up MacKay Street to the hospital, as it's muchly needed".

Mr Moloney said that given the extent of assets in CGRC, the council had done an "amazing job" of improving since the last survey.

"I've been really impressed with the quality of their road construction. They do it themselves, which keeps their unit rates down, rather than going out to tender."