Maryborough's Energy Breakthrough will receive $1.5 million to secure the event's future after the loss of its major sponsor three years ago.
The RACV pulled out of the event in 2017 after 26 years of sponsorship. The EB draws thousands of students, teachers and parents to the town in November each year to compete in human powered vehicles, with many Ballarat schools taking part.
The funding was announced as part of the state government's Building Works package to provide $2.7 billion toward projects to get thousands of people back to work and includes a boost to the tourism sector.
Central Goldfields Shire Council general manager community wellbeing Martin Collins said the organisation had been advocating for funding for the past few years.
"The event attracts almost 20,000 visitors to our Shire every year which is fantastic but this funding means we can grow this figure and increase the regional economic benefit from $5 million to $10 million annually.
"Last year, with Transurban coming on board, we hosted the Transurban Energy Expo which was a wonderful success but this funding boost will mean we can develop the visitor experience to give more people a reason to attend and potentially stay longer in our region."
Entries for the 2020 event opened earlier this month.
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