Fight Cancer Foundation managing director Eric Wright confirmed a further $1 million-plus would be the target amount for the latest appeal to fund another 10 accommodation suites, wellness centre and gymnasium.

The foundation has already raised $1 million for the project estimated to cost close to $4 million.

The initial build cost of $5.5 million in the early 2010s included $3.2 million raised in a public appeal spearheaded by service clubs.

"Based on stage one the public support was huge," Mr Wright said.

"In fact it is the most successful fundraiser we have ever had.

"We had the building and what have you paid off the week before we opened the front door."

A development application for Hilltop stage two was submitted to Albury Council last September and will be presented to council next week for approval.

The federal funding has come from the highly sought after Building Better Regions program with a further $5.1 million going to other projects in the Farrer electorate.

Farrer MP Sussan Ley said the project served a regional need.

"We look after so many people from Khancoban to Wentworth on the NSW side of the border and all over regional Victoria as well," she said.

"It is a competitive round and there are a lot of projects that miss out.

"There will be some disappointed proponents today, but this project stood out.

"It is regional and genuinely looks after patients and families from an enormous part of regional Australia.

"Also, in the construction, there is an economic stimulus."

Another 10 rooms taking the total to 40 on the Hilltop site is planned in a future stage.

The 20 rooms presently at Hilltop are fully occupied and Mr Wright hopes construction will start within three months.

The expansion will increase its capacity by 3650 guest nights each year.

A total of $7 million has been allocated to the Farrer electorate with further announcements to come.

In neighbouring Indi, Senator Bridget McKenzie announced $3.45 million had been allocated with two mountain bike and cycling trails the big winners.

A total of $1.3 million will be spent on the Great Valley Trail to complete the trail between Bright and Harrietville, and another $1 million on the Beechworth to Yackandandah trail.

A $400,000 upgrade of the Colac Colac caravan park near Corryong heads a list of other successful projects. All up, 14 projects in Indi will share in $3.45 million from the federal government.