Statement on the 2025-26 NSW State Budget

Regional Cities NSW Chair Cr Steve Krieg has acknowledged State Government funding in the 2025-26 budget to help flood-affected communities get back on their feet.

Regional Cities New South Wales (RCNSW) has acknowledged the job of disaster and health recovery in today’s budget but states that regional NSW was overlooked on important measures required to support population growth and economic prosperity.

RCNSW Chair Cr Steve Krieg welcomed funding allocations in the 2025-26 State Budget to disaster recovery, roads and freight, and digital connectivity.

“Regional NSW has endured some of the most destructive weather events in our history over the past few years and we acknowledge today’s investment in recovery aims to get our communities back on their feet,” Cr Krieg said. 

“We also welcome investment in health infrastructure and education services which will start to address the critical negative health outcomes faced by many people living in regional areas,” Cr Krieg said.

“Investing in our road network is also part of the job of keeping our communities connected and safe on our roads,” Cr Krieg said.

Today’s Budget included new and ongoing funding in partnership with the Australian Government for the following programs (over a four-year period):

  • $4.2 billion for natural disaster and recovery programs;

  • $3.5 billion capital investment for regional hospitals and health facilities;

  • $1.2 billion for TAFE;

  • $2.1 billion for new and upgraded schools across regional NSW;

  • $2.8 billion in road safety including for safety trials, intersection upgrades; 

  • $322.5 million to enhance digital connectivity, including $48 million to deliver improved mobile coverage.

“It is disappointing however to see our cities have been overlooked in important areas such as housing, water and aviation,” Cr Krieg said.  

“State and Federal Governments have set real targets for housing across the nation, but today’s budget does not provide an avenue for regional NSW to be a real part of this agenda,” Cr Krieg said.

“Our cities are amongst the fastest growing places in our state outside of Western Sydney and today’s budget leaves big questions on how our housing needs can be met,” Cr Krieg said.

“While there was plenty of funding allocated to environmental water projects, the critical water infrastructure upgrades to support our growing regional cities did not receive the same investment. As we head into drought conditions, this is worrying,” Cr Krieg said.

“Despite the failing state of regional aviation, there was also no support to help our regional airports deal with critical upgrades and maintain key services,” Cr Kreig said.

“Regional NSW needs a clear plan to prosperity and to do that we need investment in the infrastructure, such as roads, airports, communications and community facilities, that will support our growing cities,” Cr Krieg said.

“My colleagues and I will be heading to parliament later this year to continue to make the case for a positive agenda for regional cities so our regions can and state can thrive,” Cr Krieg said.

Edwina Blackburn