The aid forms part of the NSW Government's Celebrating Diversity Grants which will offer the potential to receive a share in $600,000 funding.

The grant program will aim to support programs and activities across the electorate and wider state that create networks, connections and opportunities within diverse communities.

Member for Cootamundra Steph Cooke said the grants will cater to a large number of the region's community members, connecting them locally and with other locations across NSW.

"There are so many organisations that play such an important role in our towns to support newcomers and advocate for our varied communities," she said.

"I urge all eligible community organisations across the Cootamundra electorate to consider applying for a grant of up to $40,000 to support a 12-month projects that will help bring communities closer and promote social cohesion."

The grant program has previously focused on supporting the region's multicultural youth engagement, as well as seniors, refugee projects and volunteering projects.

This round of grants will run from March 1, 2020 to February 28, 2021.

Applications will close by 5pm on Friday, December 6 this year.