The announcement of the $5.2 million funding, made by Early Education Minister Sarah Mitchell and Agriculture Minister Adam Marshall, is the third roll-out of assistance for drought-affected preschools.

Gunnedah Baptist Community Preschool director Julie Frend said if the preschool was in the list of recipients, the funding would be used to subsidise excursion costs.

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The preschool has been doing this after receiving $25,000 in the last round of funding in March.

"We're using the drought funding to cover extra activities that normally the families would have to pay for as an extra - so shows, excursions, etc," Mrs Frend said.

"It's spread throughout the whole preschool, so when excursions pop up [families] don't have to worry about if they have a few kids at the preschool.

"It's great for us to be able to expand our program and not have to worry about the cost we're imposing on families."

Mrs Frend said this Friday some of the children would be going on an excursion to Werris Creek - the whole trip free for families through the last round of funding.

"The cost of the bus and train fare would be over $600, so we're paying for that out of the funding," she said.

"We're going to have a look through the train museum, have morning tea and then a play in the park. It's a bit of a special day."

Ms Sarah Mitchell said each 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.

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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