Wollongong council will be able to vie for a share of $75 million in funds in the latest round of Resources for Regions funding.
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But Wollongong MP Paul Scully said that wasn't enough and that Labor would allocate $100 million a year if elected.
The program allocates the funding to areas in the state affected by mining.
"We know that the mining industry can put extra pressure on local infrastructure in regional towns and this fund is about giving back to these mining communities that contribute so much to the NSW economy," Deputy Premier John Barilaro said.
In the Illawarra only the Wollongong LGA is eligible to apply for funding.
Each of the 24 eligible councils will receive $1 million with the remaining $51 million allocated to the most worthwhile projects.
Mr Scully said Labor would boost the program to at least $100 million a year.
"NSW Labor will take the politics out of Resources for Regions and make sure Wollongong gets its fair share from the huge contribution mining makes to the NSW economy," Mr Scully said.
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