A grant of $46,000 was announced to help the planning and preparation of next year's Rainbow on the Plains Festival in Hay as part of the government's 'Tackling Tough Times Together' program.

Member for Farrer Sussan Ley said the grant was one of 30 projects funded throughout regional communities, aiming to help keep money flowing through local shops and suppliers, boost tourism, retain jobs and create employment opportunities.

"While we are all hoping the drought is history by next March, this cash boost more than doubles the Festival committee's budget, helping them market and build up the program in 2020," she said.

Established in 2018, Rainbow on the Plains was originally planned as a simple get together by a group of friends to watch the 40th anniversary of Sydney's Mardi Gras.

It has since grown to become a rural get together, promoting community support and inclusion, celebrating with a street parade and party alongside various events over three days.

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Festival Executive Officer Jade Auldist said it was great to see their vision for this festival gaining momentum, with funding allowing for the festival to 'really ramp up' into something special.

"This type of funding will make such a difference, especially this year coming where we either stay as a small event or build it into a sustainable, big festival with a strategic plan," she said.

"Having a focus that spreads the message of equality in rural communities is so important too because LGBTI people are increasingly visible and active in these places now so the more it is celebrated the more they will feel comfortable to move here or to stay here."

Ms Auldist said the boost would help bring big-name performers and more features for the public to enjoy.

"We will soon be making announcements about high profile artists and shows, which have only been made possible by this grant," she said.

For community members who are "older or unaware or maybe a bit scared of what they don't know", Ms Auldist said the event would demonstrate a positive culture.

"Building the festival is important to spread the message of acceptance throughout our region, but in times of drought is vital for the local economy and the businesses in Hay that we want to see survive," she said.