PLANS for the Lake Macquarie Transport Interchange have stalled after the federal government withdrew funds promised for its construction.
The transport interchange is a two-stage, $60 million project that will connect Glendale and Cardiff with road links and a railway station.
Earlier this month, Local Government NSW wrote to Lake Macquarie council, stating more than $1 million promised to the project by the Rudd government will now have to be found elsewhere.
Under round five of the Regional Development Australia Fund, all councils were guaranteed an equal, non-contestable sum of money for a major project before the election.
The Abbott government has made no commitment to honour the promise.
The $1.2 million for the Lake Macquarie Transport Interchange would have covered a 150-metre extension of Pennant Street, Cardiff, as well as new bus stops and bus shelters.
In an effort to claw back the money, Lake Macquarie council will write to the federal Minister for Infrastructure and Regional Development, Warren Truss.
Mayor Jodie Harrison said she hoped he would be able to change the government's mind.
"This doesn't just affect Lake Macquarie," Cr Harrison said.
"We're talking about communities right across the country that will be $1.2 million worse off on important projects."
The council will also rally the support of federal MPs Jill Hall and Pat Conroy.