General manager of the Illawarra Women's Health Centre Sally Stevenson said the funds were a "profound investment".

"It recognises and listen to what victim survivors have said they need and this investment will transform the way that we respond and support women to heal and recover from the trauma of violence," she said.

The centre would be a purpose-built trauma centre, providing a one stop shop for legal, physical psychological and housing support for women and children fleeing unsafe homes.

Read more: Winners and losers in the federal budget

The $25m would cover the operational costs of the centre for five years, with the next step to secure a site in partnership with the NSW government.

In delivering the budget, treasurer Josh Frydenberg said the funding was part of a package to stop domestic violence

"A new $1.3 billion package to end violence against women and children. More frontline services, emergency accommodation, and support to access legal and health services for women and children in need."

In a similar manner to clinics that specialise in a particular illness or address the needs of those with cancer, the Women's Trauma Recovery Centre would ease the long-term impacts of violence.

Member for Whitlam Stephen Jones welcomed the funding.

"I've been working hard with the Illawarra Women's Health Centre to get funding up for the Trauma Recovery Centre. And we've got a win. That's great news."

Ms Stevenson said it was almost three years to the day since launching the campaign for the trauma recovery centre.

"It's a testament to the Illawarra community that has backed us unequivocally for the past three years and it's a testimony to the courage of victim survivors who have put their stories forward."

The Illawarra Mercury newsroom is funded by our readers. You can subscribe to support our journalism here.