A $2.5 million slice of $14.5 million for AWH that was originally flowing through in 2022 will instead be delivered in July.
The Coalition made an election promise to provide the health service with $12 million for a 20-bed mental health rehabilitation unit and $2.5 million for specialist clinical services.
After learning that funding would be delivered in stages from 2022, and not in full until 2024, AWH Board chair Nicki Melville called for the funding to be released sooner.
Ms Melville was at a meeting of mayors and politicians at the Wodonga Incident Control Centre that Health Minister Greg Hunt attended on Wednesday morning.
Mr Hunt said he had confirmed to Ms Melville the funding for the specialist clinics would be brought forward to this year.
"One of the things they've been very clear on, and Helen [Haines] and Bill [Tilley], as well as Sussan Ley and Jane Hume, is they'd like the $2.5 million brought forward for the stage one of the Wodonga Hospital next extension," he said.
"In particular, that's the specialist services and I can announce we will bring forward to July of this year.
"All are agreed that's necessary, Nicki's made out that case, so I confirmed to Nicki today that we will be providing that funding during this calendar year.
"Further elements around the master plan, we're happy to discuss with the state."
AWH wrote to Farrer and Indi MPs Sussan Ley and Helen Haines at the end of last year about the issue.
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In response the Victorian government said the Commonwealth had not provided details on the mental health rehab unit and it was working on the information that all the federal funding would not come through until 2024-25.
Indi MP Helen Haines, who was at the press conference on Wednesday were Mr Hunt announced the funding release, said it was welcome news.
"I'm heartened that Mr Hunt - visiting our bushfire affected communities with me and state parliamentarian Bill Tilley in the North East today - has answered my call to fast track this money," she said.
"Just ahead of last year's federal election, the Coalition committed to fund a $2.5 million specialist clinics centre and a $12 million mental health rehabilitation unit at the campus.
"But the reality was that this funding wasn't to come as a lump sum.
"The first of it wasn't to flow until after the next election in 2022 and complete three years later.
"Yet that defied common sense, because it's impossible to get capital works of this type done piecemeal over that length of time.
"My staff have also been pressing the case with his office.
"Our communities now look forward to the $12 million promise for the mental health unit also being brought forward, which will be so important as we work through bushfire recovery in the North East."