Thousands more social housing tenants across regional NSW will now have the chance to upgrade their washing machine for as little as $150 following an expansion to a recent state government trial.

The news of the trial expansion came days before the release of the NSW 2022/23 State Budget, which will see a further $300 million invested in social housing, alongside over $60 million to support other gaps in housing in regional NSW.

The trial was first announced by the state government in late April, and was initially only open to tenants living in Land and Housing Corporation (LAHC) and Aboriginal Housing Office (AHO) housing located in a limited number of LGAs, including full coverage of the Western Plains.

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Minister for Lands and Water Kevin Anderson said there had been a record response to the pilot, motivating the government to almost double the number of available machines and rolling out the program statewide.

“The pilot has received rave reviews, already replacing almost 2,500 old top loaders with more water and energy efficient front loaders in only two months,” Mr Anderson said.

“To keep the ball rolling and save even more water we’re now opening up the program to all social housing tenants across NSW from Menindee to Moree, Bombala to Byron Bay and Sydney to Singleton and everywhere in between.

“We have increased the total number of washing machines to 5,500. Each of these will save approximately 25,000 litres of water per year."

The application process for the trial has also been extended from the end of June to the end of September this year or until all washing machines are allocated.

The extension to the washing machine trial comes around the same time that the state government has allocated hundreds of millions of dollars to social housing in its latest budget.

Included in a $2.8 billion allocation to housing is $300 million for maintenance and upgrades to more than 15,800 social housing properties.

The government says this investment would extend the life of social homes and ensure social housing tenants would continue to have safe accommodation.

Other investments in the housing space relevant to the Western Plains include $33.8 million to its Regional Housing Development Program overcome data gaps and coordination and planning barriers to secure a pipeline of housing supply in regional New South Wales.

$32 million has also been allocated to deliver planning and infrastructure upgrades to First Nations communities through the Roads to Home program, which already has already been rolled out in communities such as Gulargambone, Collarenebri and Condobolin.

Although he acknowledged the 2022/23 did have some good news for regional housing, State Member for Barwon Roy Butler maintained ongoing housing shortages remained a "choke point" for regional NSW.

"Housing supply is a bottleneck for regional population growth and economic development," he said to Minister for Planning and Minister for Homes Anthony Roberts during question time this week.

"It is stopping regional communities from reaching their potential."

In response to Mr Anderson's answer about additional housing opportunities on the way for his electorate in the coming years, Mr Butler would later clarify the major problem was build times and delivery dates for the new homes, which he would remain vigilant for.