Illawarra region Labor MP Stephen Jones accused the federal government of "fraud" for its public promise of $500 million for the NSW section of the highway, announced in advance on Monday, April 1.

The Whitlam MP tweeted: "REVEALED: Coalition promise to spend $500M on Princess (sic) Highway between Nowra and Batemens Bay a fraud. Budget says $100M split between all of Victoria and NSW and not until 2021-2 Where's the other $400M?"

Deputy Prime Minister and Infrastructure Minister Michael McCormack hit back on Wednesday, April 4, insisting that $500 million was promised for the NSW section - and that the extra funds would be allocated in stages as the NSW Government completed planned upgrades.

The Federal Budget papers show $100 million included in the forward estimates: $20 million to be spent in 2020/21; $30 million in 2021/22 and $50 million in 2022/21. 

The document went on to say those funds would form part of a $1 billion package for the highway, which runs through three states.

"The Government will provide $1 billion from 2020/21 for improvements to the Princes Highway, including for road widening, and safety upgrades, new overtaking lanes, duplicating along key sections, and town bypasses in NSW, Victoria and South Australia," the papers stated.

"The funding will be informed by the Princes Highway Corridor Strategy, initiated by the Commonwealth Government."

Corridor Strategy staff toured highway town late last year in a series of briefing sessions and released an issues paper this month.

In December, Mr McCormack and Shadow Infrastructure Minister Anthony Albanese signed a bi-partisan statement of support for federal backing for a safer highway.

Speaking in Moruya on February 5, Opposition leader Mr Shorten did not promise funding, but said "we do think there is a case to be made for a fair go". 

Mr Albanese later that month told the Parliament that historically both sides of politics had failed to invest in the highway, but "there is a clear case for us to do so and in a bi-partisan way".

However, federal Labor is yet to publicly commit funds to the highway and accidents continue.

On Wednesday, Mr McCormack  said Mr Jones's Budget night comments were "disappointing".

"It's disappointing that despite my bipartisan approach on the Princes Highway - including the historic letter Anthony Albanese and I signed last year as part of the FIX IT NOW campaign - a local Labor MP has sought to criticise and play games," he said.

"Getting the Princes up to scratch should be above politics. And local MPs should join with local communities in welcoming the funding.

"As we do with all pieces of infrastructure, the Federal Liberal and Nationals Government will work with the NSW Government to deliver the $1 billion for improvements to the Princes Highway, including $500 million for the section running from Wollongong to the Victorian border.

"We will be working in partnership with the Coalition in New South Wales to get this work underway as soon as possible.

"The Federal Government pays state governments - which build the road - on milestones as sections are completed.

"With more than $2.2 billion for road safety in the Budget and $500 million for the New South Wales section of the Princes Highway, the Liberals and Nationals are serious about getting people home sooner and safer.

"Doing so delivers the roads locals deserve and the productivity boost regional economies need. This brings the Federal Government's total commitment to $1.9 billion."