The Hunter's Labor politicians have labelled the federal budget a "wasted opportunity" for the region.
The government said on Tuesday that it would provide $100 million to help establish commercial hydrogen energy production in Newcastle and $268 million to duplicate the New England Highway between Singleton and Muswellbrook.
It also outlined one-off payments and fuel-excise cuts it hopes will ease cost-of-living pressures and win over voters at the May election.
Shortland MP Pat Conroy said there was "nothing" in the budget for his electorate but welcomed the hydrogen funding.
"I welcome the investment to begin the work of establishing a hydrogen and ammonia hub at the port of Newcastle and we will support it," he said.
"I have long been an advocate for hydrogen's potential, so it's good that the Morrison-Joyce government continues to copy Labor's hydrogen policies. This is after calling hydrogen snake oil prior to the last election.
"The question has to be asked: Why do they only care about the Hunter when there's an election around the corner?"
Newcastle MP Sharon Claydon said the budget contained no money to restore full funding to the Hunter's GP Access scheme, build new social and affordable housing in the region or fund a federal anti-corruption commission.
The budget included another $2 billion for the National Housing Finance and Investment Corporation to offer low-cost loans to community housing providers.
Newcastle lord mayor Nuatali Nelmes said the Financial Assistance Grants program for local government had slipped to a relatively low proportion of Commonwealth tax revenue in Tuesday's budget.
"Indexing financial assistance grants to 1 per cent of Commonwealth taxation revenue is the only way to ensure local community infrastructure is adequately funded," she said.
"It's essential that this funding to local government is restored.
"In this budget, federal assistance grants have declined from 0.6 per cent of federal taxation revenue to 0.55 per cent, close to the lowest percentage ever.
"Under Paul Keating, they were 1 per cent of Commonwealth taxation revenue - nearly double."
Cr Nelmes said the government had not funded a $200 million disaster mitigation fund to each state which would help local councils prevent disasters, a move recommended in a 2014 Productivity Commission report.
She said federal Labor had committed to fund the program if elected.
The Liberals' Shortland candidate, Nell McGill, said the budget contained measures, including a halving of the fuel excise for six months, which would help relieve cost-of-living pressures.
"I think it will be well received by people in Shortland because it means more money in their pockets," she said.
"There is an average of 1.5 cars per household in Shortland, with most people driving to work or school and to see their family and friends, so this 22 cents per litre saving over the next six months will make a huge difference."
She also pointed to the budget's one-off $420 cost-of-living tax offset for about 58,500 low- and middle-income earners in Shortland and a one-off $250 payment to the electorate's 22,700 pensioners, 2170 carers, 7800 job seekers and 6000 disability support recipients.
