An additional $104 million is to be spent upgrading the McKoy Street intersection, just west of Wodonga, Victoria.
The Federal Government announced the money as a prebudget commitment, which is on top of $64 million initially announced during last year's federal election.
That, combined with the State Government's contribution to the project brings its total to $210 million.
Member for Benambra, Bill Tilley, said the community has been lobbying for changes to be made for years.
"It's great news from the Australian Federal Government and likewise with the Victorian State Government increasing their contribution as well," he said.
"It recognises how important this intersection is to make it safe for our long haul, our transport industry, our businesses, our families taking the kids to school, the whole network."
A fixed 80kph speed zone was trialled by Regional Roads Victoria in 2018 when it was assessing the impacts of a new service station built on McKoy Street.
It is the only 80kph zone on the Hume Highway route between Sydney and Melbourne and had the community divided.
"It's unsafe. It's a dog's breakfast," Mr Tilley said.
"We need to see this work commence as soon as possible."
Boosting the economy
The project is expected to create more than 500 jobs in the area.
"It's going to be a real boost coming off the back of the COVID-19 pandemic," Mr Tilley said.
"To see people on the ground working, and locally as well, it's a great boon to the area."
Wodonga's population is growing at a rapid rate with over 43,000 people calling the local area home.
That was expected to increase by 32 per cent by 2036.
Mr Tilley said the works are vital to support the growth.
"Whilst the city of Wodonga continues to grow this infrastructure investment will make our growth even better," he said.
It was not yet known how the project would look, but ideas of a potential overpass or underpass have been suggested.
