A total of AUD2.6 billion (£1.3 billion/$1.6 billion/€1.5 billion) was set aside in last year's budget but the state Government is still waiting for the federal Government to enter talks so the pair can decide where the money goes.

"Under Labor, Victoria is broke and we cannot expect to deliver a world-class event when there's no money in the budget just three years out," said Shadow Minister for the Commonwealth Games David Southwick, as reported by Mirage News.

"Life is getting harder in Victoria, and the Commonwealth Games is a once in a generation chance to invest and grow regional Victoria.

"The Minister for Commonwealth Games Delivery Jacinta Allan must provide certainty to regional Victorian residents and councils by delivering a fully funded Games."

The Victorian Government has factored the full AUD2.6 billion into its own budgets but is expected to want an even split with the federal Government.

Allan has tried to play down fears that preparations are being left too late, but this is not appeasing everyone.

Victorian Premier Daniel Andrews is also confident that a partnership will be struck soon with Prime Minister Anthony Albanese.

"Despite what Daniel Andrews and Jacinta Allan say, we know that three years is not a long time to deliver a world-class event," said Victorian Opposition Leader John Pesutto. 

"Councils in particular, right across the state, need to have a clear understanding on what role they will play, and what the lasting benefits will be.

"We must support those people in Bendigo needing social and affordable housing and this has to be one of the key legacies of the 2026 Commonwealth Games."

Access to public housing is a critical issue in Bendigo with the Australian Bureau of Statistics estimating homelessness in the city almost doubled between 2016 and 2021.

Bendigo is one of the Games sub-sites as well as Ballarat, Geelong, and Gippsland.

The Athletes' Village is set to be built in Flora Hill and is planned to help Victoria provide more affordable and social housing once the Games are finished.

Hospital's in Footscray and Frankston received the biggest portion of the latest budget as they were attributed AUD634 million (£334 million/$412 million/€384 million) and AUD350 million (£184 million/$227 million/€212 million)