The money has come in the latest tranche of funding through the federal government's drought communities program.

The funding can be used to increase local employment opportunities, stimulate spending and address social and community needs.

Junee mayor Neil Smith said the funding was a welcome boost for the shire and, having only just become aware of it, the council had not yet been able to make any decisions on how to spend it.

"We could look at our neighbouring councils to see what they have done, but we will want to get it out into the community as quickly as possible," Councillor Smith said.

Like Cr Smith, mayor of Cootamundra-Gundagai Abb McAlister has welcomed the funding.

Cr McAlister said the council was expected to discuss how best to spend the funding when it met on Tuesday night.

"We will be putting it to good use on projects in the community," he said.

"It was great to get the phone call from Michael McCormack, confirming we had the funding."

The addition of Cootamundra-Gundagai and Junee local government areas brings to 11 the number of Riverina councils now included in the drought communities program. Hilltops, Lockhart, Temora, Coolamon and Bland have previously been given $1 million grants.

"This funding will certainly give the Cootamundra-Gundagai and Junee local government areas a much-needed boost," Mr McCormack said.

"We know the drought continues to tighten its grip on our local communities which is why our focus remains on assisting these regions where we can.

"The federal government is working to ensure our regions get through this prolonged dry spell."