With the ACT government recently deciding against renewing its funding support for the group, CAT Awards chairman Dennis Martin said they were desperate to find assistance being a not-for-profit organisation.

"It's our first major government grant and we've been around for 20 years now...it was liking walking through a desert and then stumbling across an oasis," he said.

While CAT has its hub in Canberra, most of its territory lies in regional NSW with its boundary extending east to Wollongong, south to the Victorian border, west to Griffith, and north to Dubbo.

"Every dollar goes towards being able to put our judges on the road to judge shows," Mr Martin said.

"We collect data and form nominees for each category of our awards ceremony, which is held annually in February at Llewellyn Hall in Canberra."

Member for Monaro John Barilaro said it was important for CAT to continue recognising local artistic talent, which was something he believed was important for bringing regional communities together.

"This region in particular has cemented a growing reputation as a centre of cultural and artistic excellence, and recognising the need to nurture artistic talent is just as important as celebrating and appreciating the work of established arts," he said.

Deputy premier and minister for the arts Troy Grant was in Queanbeyan on Thursday, joining Mr Barilaro to announce the grant.

He added that 21 out of 44 of last year's award winners were from regional NSW and this demonstrated how important local performing arts were.

"Many companies, performers and production personnel in the region have found the CAT awards bring the satisfaction and enjoyment of having their local talent recognised," Mr Grant said.