A further $15 million in federal funding will be made available for the road sealing project, Lyne MP Dr David Gillespie announced on Tuesday (May 10).

It comes on top of an earlier $5 million federal government contribution for the project and as Port Macquarie-Hastings Council has earmarked $5 million in its draft 2022-2023 budget towards the road upgrade.

The entire sealing project has an expected price tag of between $35 million and $40 million.

There are calls for the state government to contribute the funding shortfall. That would make for a combined funding approach from all three tiers of government to seal the 13.5km Lorne Road stretch between the Tipperary Road and Comboyne Road intersections.

Dr Gillespie described Lorne Road as a road of strategic importance.

"Along the road corridor extending from the Comboyne Plateau to the Lorne Valley, there are nearly 60 businesses with 40 per cent in agriculture alone," he said.

The rural road between Kew and Comboyne carries freight traffic related to the industries of dairy, beef cattle, logging and horticulture.

It is a school bus route and attracts tourists exploring the hinterland.

Dr Gillespie confirmed the federal government had already allocated $5 million to the council towards the sealing project, and a further $15 million would be made available from the Roads of Strategic Importance initiative.

He acknowledged the council's allocation in the draft budget.

Dr Gillespie said it was going to take a joint effort of local, state and federal governments to see the project to completion.

Mayor Peta Pinson agreed, saying without a state government contribution, the entire road sealing project could not be finished, but she acknowledged the council's draft budget allocation and the federal government's "significant contribution" to progressing the project.

Lorne Road provided the only access from the Port Macquarie-Hastings to the village of Comboyne when Comboyne Road was closed due to structural issues after the floods.

Residents have labelled Lorne Road as extremely dangerous.

"It [road sealing] will greatly improve the safety of Lorne Road because we have seen significant accidents on that road in the past," Cr Pinson said.

Oxley MP Melinda Pavey said last week, she organised a meeting between the Minister for Roads Sam Farraway and mayor Peta Pinson, along with senior council representatives.

"At this meeting all parties agreed Lorne Road was a priority and to work together for a successful funding outcome," she said.

Ms Pavey welcomed the federal government's $20 million commitment to the Lorne Road upgrade and urged Minister Farraway to bridge the funding shortfall of $10 million through round four of Fixing Local Roads or alternate budgetary measures.