It's the third time the government has rolled out funding to help families afford the essential services; however, this time, the $5.2m program has been extended to include long daycare centres.

Early Education Minister Sarah Mitchell said each childcare centre could choose how to best spend the money.

"In previous rounds, services have used this money for things like fee reduction, transport options and also improvements to playgrounds and outdoor areas," Ms Mitchell said.

"Here in the New England and North West, I've heard reports of preschools making an entire term free, significantly reducing the cost.

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"We think this is one way we can make a difference to regional families. We don't want our country kids to miss out just because of these really tough seasonal conditions."

Agriculture Minister Adam Marshall said that, with more than 97 per cent of the state in drought, all regional childcare centres would be eligible for funding.

"Most of the areas in the New England and North West are classified as in intense drought, so they will receive a special loading on the basis of that," Mr Marshall said.

"What that means for the typical preschool in the Tamworth or Armidale areas, with 25 to 50 students - they would be looking to receive somewhere around $8000 to $9000 under this package."

The funding will be rolled out in August and is part of the NSW government's $755m drought support package.

"We know that our families are doing it tough, not just those on farms but also those in our regional communities, and this is one way we can offer a bit of support," Ms Mitchell said.

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