Through the government's latest round of the Building Better Regions Fund, it was announced that two other projects in the Bendigo region would share in $40,000, but nothing for the airport terminal upgrades.

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"This Bendigo Airport Terminal upgrade will create jobs, bring more people to Bendigo and drive economic growth," Ms Chesters said.

"Which will be so important as we begin to open up and start our recovery.

"However, as they have done for the previous three rounds of the BBRF, the Bendigo Airport Terminal upgrade was overlooked once again."

The City of Greater of Bendigo has sought $4.3 million to upgrade the Bendigo Airport terminal to ensure it is able to keep up with its expected nine-fold increase in passengers.

The planning application for the upgrade calls for the current terminal and extra car spaces, as well as a new administrative building and undefined works linked to a business park previously earmarked for the site.

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The terminal would include a waiting area, departure lounge, baggage collection area, café, additional toilets and spaces dedicated to safety and security infrastructure.

"If this government really cared about regional Australia, if it really cared about boosting economic recovery, then it would have funded the Bendigo Airport - a project that has been widely endorsed by local and state governments as well as the local business community," Ms Chesters said.

"Bendigo is the second largest city in regional Victoria and it is clear the airport's needs are expanding, so the airport itself needs to expand with it.

"I've spoken to local businesses and organisations from motels to manufacturers, who want this project to go ahead."

Senator for Victoria Sarah Henderson said she would "continue to advocate, on behalf of council, for funding for the proposed $10 million expansion of the airport's terminal and business park."

"I am concerned that Bendigo MP Lisa Chesters has again sought to mislead local residents about Commonwealth support for the Bendigo Airport," she said.

"While I am disappointed Bendigo Airport missed out on further funding in this round, I will continue to work with the City of Greater Bendigo on this important project to which the federal government has already provided close to $6 million."

Ms Henderson said the Neighbourhood Collective Australia and Food Fossickers Central Victoria would receive more funding to hold training and host events in the Bendigo region.

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"The federal government is investing in projects which build community resilience, improve our way of life and increase visitation to our region, vital as so many community members and businesses emerge from the pandemic," she said.

"The BBRF is one of the many ways that the government is supporting jobs growth and economic recovery in regional communities."

The government has given:

"I am delighted to announce funding for these successful projects," Ms Henderson said.

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