Victorian Senator Sarah Henderson said the new money, from the Local Roads and Community Infrastructure Program, could provide all sorts of support for council-owned assets, from building new footpaths to extending a sport clubroom's kitchen.

"What's going to be what really important is that the projects can be delivered straight away," she explained.

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"We're not going to allow councils to sit on this money - we want the investment and jobs straight away."

Moorabool Shire will receive $1.7 million, Hepburn $1.06 million, and Golden Plains $1.5 million - money is allocated according to population, Ms Henderson added.

The money must be spent on projects before December 2021 otherwise it will be withdrawn, and councils will need to put forward projects that meet all criteria to receive funding.

She said the federal government had committed millions already to Ballarat to help support an infrastructure-led economic recovery - she pointed to works on the Western Highway, Black Spot funding in Redan, Wendouree, and on Mair Street, traffic calming near Wendouree station, and works on the Ballarat rail line including the Western Rail Plan - but said the focus must be on the state budget for the Ballarat Link Road.

Finishing the Link Road between Remembrance Drive and Carngham Road was one of four urgent priorities for the city, according to Committee for Ballarat chief executive Michael Poulton - he said he was also hoping to see answers on fast rail, support for tourism, accommodation, and hospitality businesses, and a renewed focus on recycling in the state budget.

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Ms Henderson said the federal government could not commit to supporting the Link Road project until it was also supported by the state government, noting the subject was raised at a business roundtable with Ballarat representatives and Assistant Treasurer Michael Sukkar in August.

"In terms of more infrastructure we need the Link Road - we need the state government to support that project," she said.

"I am calling on the state government to support and bring forward funding (because) we, as a Commonwealth government, can only fund infrastructure projects supported by the state government, so we desperately need to see the stat gov present more infrastructure projects.

"We can't announce funding unless the state government supports it."

The City of Ballarat is currently in caretaker mode and is unable to comment.

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