The latest announcement will see both Junee and Cootamundra-Gundagai councils have the potential to access up to $3000 in cash payments.

Following last month's announcement where the region was made eligible for the Drought Communities Programme, the federal government has extended the Drought Community Support Initiative (DCSI), which means farmers, farm workers and farm contractors and suppliers could reap the benefits.

Riverina MP and Deputy Prime Minister Michael McCormack said the issue was ongoing, and as such, the government's support would be too.

"As the drought continues its grip on rural and regional Australia, the Liberals and Nationals in government will continue to ramp up assistance measures," Mr McCormack said.

"The Drought Community Support Initiative delivers much-needed cash injections for those on the ground who are suffering the most.

"This money can help those who are experiencing financial hardship to pay for basic household expenses."

Eligible farming households in Junee and Cootamundra-Gundagai LGAs will now be able to access the DCSI from mid to late March, from either The Salvation Army or the St Vincent de Paul Society.

The federal government has provided more than $180 million to drought-affected farming households through the DCSI since 2018.

"We will also continue to support those coming off the four-year Farm Household Allowance (FHA) by providing a one-off payment which is the equivalent to a further six months on the FHA," Mr McCormack said.

"As the drought continues, we will continue to adjust assistance as needed."

Member for Cootamundra, Steph Cooke said the new announcement was well received.

"We welcome this funding because the drought is not over and our communities continue to be impacted," she said.