Another $300 million has been set aside to help communities clean up from record flooding that sent large tracts of NSW underwater in March.
Tens of thousands of people were evacuated across the state as rivers fuelled by torrential rain broke their banks, with Sydney's Hawkesbury-Nepean Valley and the mid-north coast the hardest hit.
Of the newly announced funding, $200 million will be spent on eight key flood recovery initiatives, which include industry recovery, job retention, rebuilding infrastructure and safeguarding mental health and community wellbeing.
The federal government has also announced it will top up the Infrastructure Betterment Fund, matching the NSW government's contribution of $100 million.
That money will go towards rebuilding and improving the resilience of public infrastructure damaged during the recent floods as well as the Black Summer bushfires.
The package - jointly funded by the state and federal governments and now worth $400m all up - will ensure longer term recovery of the impacted areas, Minister for Emergency Management Bridget McKenzie said.
"Months on from the devastating storms and floods which impacted over 70 Local Government Areas across NSW, we are continuing to stand by communities as they recover," she said.
"We have listened to farmers and producers, too, and included more than $25 million to provide grants for rural landholders who do not qualify for the existing supports, as well as funding for environmental recovery initiatives, including riverbank restoration."
NSW Deputy Premier John Barilaro said a big part of the long term recovery was improving the wellbeing of communities inundated, many of which were still reeling from drought, bushfires and the pandemic.
"We cannot underestimate the mental health and wellbeing of those impacted by these disasters and I'm pleased that we've been able to provide extensive support to assist communities hardest hit," he said.