The money is being provided under the Federal Government's $1.8 billion boost for road and community projects through local governments across Australia to boost economies struggling under the effects of COVID-19.

The restrictions imposed to prevent the spread of COVID-19, which particularly hurt Oberon businesses that rely on tourism, came after a summer of bushfires in the region that had already done considerable damage to the local economy.

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Kim Arnott from the Long Arm Farm Cafe, one of many affected businesses in town, said last month it had been a "horrible couple of months".

Mr Gee said the Federal Government funding will not only support jobs and economic activity across the Oberon Council area, "it will improve our local roads and provide for new and upgraded community infrastructure, which is a great investment".

"I will be working closely with [Oberon] Council to make sure projects get underway to help support local employment and businesses as soon as possible," he said.

"A broad range of community infrastructure projects will be eligible, including new or upgraded bicycle and walking paths, community facilities, and picnic shelters and barbecue facilities at parks."

Mr Gee said the Federal Government's package included the establishment of a new $500 million Local Road and Community Infrastructure Program and the bringing forward of $1.3 billion of the 2020-21 Financial Assistance Grant payment.

He said the new program is based on the successful Roads to Recovery program and will enable councils to deliver priority projects with a focus on upgrades and maintenance to roads and community infrastructure.

He said more than $8.8 million in funding will go to accelerating infrastructure projects in the Central West.