Drought-affected students will pay no fees or only 40 per cent of the fees at a Gunnedah school this year.
Parkes MP Mark Coulton announced Carinya Christian School's success in applying for finances under the federal government's Special Circumstances Fund on Tuesday.
School principal Chad Kentwell said it came at "a good time for families".
"We got everything we applied for," he said.
"We had to first seek submissions from our school community regarding the financial impact of the drought on them and we took that information and made an application through the fund on their behalf.
The school applied for both on-farm families and off-farm families.
"On-farm, we applied for a great percentage of relief for those families ... there are also businesses that have cut back hours of some of their workers because of the drought, and other people who own businesses and the amount of work they have been getting has been affected by the drought," Mr Kentwell said.
"We had more people make submissions than we've had people approach us [for help] but I think it's because it's a special purpose fund provided specifically for this reason.
"We're grateful to the federal government for supporting families in country areas so they can continue to make choices about their child's education and ongoing support of rural families through drought.
"It means that those families can get assistance and it doesn't impact the operation of the school."