The federal government has committed $168 million to the project with an initial allocation announced in the lead-up to the 2019 federal election before a further $104 million was announced in last year's federal budget.

The overall project has been estimated to cost $210 million, but the Victorian government has been unwilling to pinpoint the exact amount it will contribute.

The McKoy Street intersection with the Hume Freeway is classified as a major roads project by the Andrews Labor government with Jacinta Allan the responsible minister.

"Major Road Projects Victoria is currently undertaking early planning work on behalf of the Australian government to inform the development of this project," a state government spokesperson said.

"The project is in the early planning and development phase with design options and cost estimates to be determined as part of the business case.

"Planning work is expected to be completed in 2022."

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Major Road Projects Victoria is doing the planning works on behalf of the federal government including traffic, environmental and social studies with project commencement determined once the business case has been finalised.

An 80km/h speed limit at McKoy Street has existed since 2015.

Member for Benambra Bill Tilley said the government's timeline was a slap in the face for intersection users including nearby businesses.

"It was 2017 when VicRoads first produced a draft plan for the freeway and its entrances and exits around Wodonga," he said.

"Does any reasonable person think it takes four or five years to do this work?

"I get it, like the suicide barriers on Melrose Drive and the sports stadium at Wodonga Senior Secondary College, Labor doesn't want to start on these projects believing it will give the Federal Coalition a boost ahead of the next election.

"It's politicking at its worst and people who use that dangerous intersection are just caught in the middle.

"The Andrews Government needs to govern for all Victorians, not just those who vote for them."

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