Local jobs in the Mountains are being supported under the Morrison Government's Local Roads and Community Infrastructure program (LRCI).
A trio of projects will commence in March. Select footpaths which are potential trip hazards will be replaced, kerbs at Katoomba town centre will be renewed, and a number of driveways will be upgraded.
Liberal Senator Marise Payne said the program was a critical part of the Morrison government's economic recovery plan.
"By partnering with Blue Mountains City Council, we have been able to deliver this strategic investment that is supporting jobs and delivering better community infrastructure," Senator Payne said.
"Every single job we support makes a huge difference in our local community as part of Australia's economic comeback."
Ward 1 Liberal Councillor Kevin Schreiber said the Blue Mountains would benefit from the federal investment.
"Frankly, I've lost track of how many times residents have told me about kerbs, gutters and roads that need to be fixed, so I'm pleased and thankful that the federal government is helping our council to address these practical issues," Cr Schreiber said.
"Our local roads and footpaths receive a high volume of traffic, particularly because of the flow of tourists. These upgrades will improve these assets, boosting community access and safety. This is a smart investment in our city because it will also support local jobs as we work to recover from COVID-19 ."
Senator Payne said council will receive a further $2.65 million funding injection, in addition to the $869,000 it received in July last year, under an extension of the LRCI program.
"This additional funding will help lock in our economic recovery in the longer term. With a larger funding pool available, this is a valuable opportunity for council to pursue some really significant projects that will benefit the community and secure jobs."