The new money was provided under the federal government's new $500 million 'Local Road and Community Infrastructure program'.

The federal government will also bring forward $1.3 billion in Financial Assistance Grants from next financial year.

Cr Conkey did not know how much Wagga would receive via the assistance grants being brought forward, but the council has previously budgeted to receive more than $10.7 million from the grants in 2020-21.

"We will get that money by then end of next month, so that is very positive and that will help us, plus $2.05 million that we picked up for local roads and community infrastructure," he said.

"That will be a great benefit to Wagga City Council plus the economy of Wagga."

Cr Conkey said the funds should flow through to contractors in the city as the council decided how to spend the additional money.

On Friday, Riverina MP and Regional Development Minister Michael McCormack announced that 12 Riverina councils would share in $13.8 million, based on increasing their 'Roads to Recovery' funds.

Coolamon Shire will receive more than $772,000 via the new grant with $985,000 going to Cootamundra-Gundagai, nearly $588,000 going to Junee, more than $846,000 going to Lockhart and nearly $826,000 to Temora.

"This package will improve road safety and bolster the resilience of our local road networks, which will get Australians home sooner and safer, no matter where they live," Mr McCormack said.

"Projects could include constructing or improving bridges, street lighting and heavy vehicle facilities such as rest areas or weigh stations.

"Providing support for social infrastructure projects such as new or upgraded bicycle and walking paths, community halls, picnic shelters and barbecue facilities at parks, will help communities, especially those in regional and remote areas, stay connected."

Cr Conkey said the funding was welcome as the council's budget was "taking a huge hit" from higher costs due to the coronavirus pandemic.

"There's about a $2 million deficit this financial year and $4.5 million deficit forecast for next year.

"But as the general manager [Peter Thompson] said, hopefully we can return to a break-even situation after the following financial year, so we'll see how we go."