An additional eastbound lane will be added to the Great Western Highway at Victoria Pass, as the federal government announces it will share the cost of rebuilding and permanently widening the critical link between the Blue Mountains and Central West.

$100 million has now been allocated by the Commonwealth, matching the $100 million committed by the NSW Government in the 2026–27 NSW State Budget, bringing the total project budget to $200 million.

"The Australian Government made an early commitment that we would work closely with the NSW Government to reopen the highway as quickly and safely as possible," Federal Minister for Infrastructure, Transport, Regional Development, and Local Government Catherine King said.

"This will not be a simple repair, but getting this done is a priority. That's why the Albanese Government is announcing $100 million in federal funding today."

Traffic over the mountains has been detoured via the Bells Line of Road since the closure of Mitchell's Causeway and Victoria Pass in March due to serious cracking and movement.

In June, the NSW Government announced that a solution had been found, with Seymour Whyte contracted to construct a new road deck above the existing causeway supported by piles anchored to the bedrock below.

Major works for the reconstruction of Mitchell's Causeway are already underway, with the Great Western Highway expected to reopen to traffic in the second quarter of 2027.

The additional federal funding means that, towards the end of the reconstruction, work will begin on adding an extra eastbound climbing lane.

"The Albanese government's $100 million contribution means we can go beyond simply rebuilding Victoria Pass. This investment will mean we can future-proof it," NSW Minister for Roads Jenny Aitchison said.

"By delivering an additional eastbound climbing lane, we are taking the opportunity to improve the road for the long term, giving motorists the opportunity to safely overtake slower-moving vehicles and trucks.

"This investment will address a long-standing pain point for locals and truckies, while ensuring we can get this vital road safely reopened as soon as possible. I am very pleased to be working with our federal counterparts to make that happen."