Wagga PCYC's plan to build a new multi-purpose sports centre for the city's youth has potentially been set back "a couple of years" after missing out on a federal grant.
That's according to PCYC Riverina manager Brett Somerville, who had applied for $10 million from round three of the Building Better Regions Fund.
"We found out were were unsuccessful on Sunday," he said.
"We're awaiting feedback on our application. It may just be a case of missing out but we don't know yet."
Mr Somerville said the club would continue to seek federal grants.
"This is the third time we have applied and we will apply again as the funding becomes available again but I don't know when that will be," he said.
"It will set us back … we were waiting for the last piece of the puzzle, which was this money."
The club has already raised $3 million from Wagga City Council and $10 million from the NSW government.
Regional Development Australia Riverina told applicants via email that 330 projects in 'infrastructure' and 'community investments' to the value of $204.3 million had been approved.
"Round three was highly competitive with 915 applications received under both streams," the email stated.
Federal Riverina MP Michael McCormack, who is also responsible for the Building Better Regions Fund as Infrastructure Minister, said their budget limited the amount of successful applications.
"Had we invested in every single one of the many, many hundreds of very good applications right across the nation, we would have probably spent more than $1.2 billion.
Mr McCormack urged the PCYC to try again under the next round.
Riverina Labor candidate Mark Jeffreson said his party "completely supported" the PCYC's proposal.
"[Mr McCormack] has two irons in the fire here, one as the local member and one as infrastructure minister, and neither are gathering much heat," he said.
"This is a legitimate, well-thought-out, strong proposal that has been funded by two arms of government but not the third."
Australian Conservatives state candidate for Wagga Colin Taggart claimed the PCYC knock back reflected poorly on Nationals candidate Mackenna Powell's campaign pledge that she had the ear of ministers.
"The one thing that unities every candidate is the importance of the PCYC … but yet the National Party isn't funding it," he said.
Ms Powell said she would "continue to assist PCYC in their endeavour to secure federal funding".
"I am committed to supporting PCYC and the fabulous work they do," she said.
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