Just days after the Roads to Recovery funds were finally secured, Queensland local governments say the state has plundered another source of infrastructure funds.

The Local Government Association of Queensland (LGAQ) says vital council infrastructure projects are in jeopardy from a Newman Government decision to let State Government agencies access funds from the Royalties for the Regions program.

The program is aimed at returning wealth to towns near major resource projects, where locals often see little to no benefit from the exploitation of natural resources. With the popularity of fly-in-fly-out workforces at regional mines, Royalties for the Regions exists to ensure that permanent residents get something back.

But the recent move refocuses Royalties for the Regions to give State Government bodies access to about two-thirds of the program's funds.

It means that all the councils around the state will have to share in a $60 million pool for their specific needs, with $120 million directed to projects at the discretion of the State Government.

LGAQ President Margaret de Wit says the decision directly contradicts the Government's 2012 election commitment to local councils and is a major departure from the original intent of Royalties for the Regions.

LGAQ says the LNP's election policy document promised that the program would “ensure, in particular, that the Queensland regions that host major resource developments receive real, long term royalty benefits through better planning and targeted infrastructure investment”.

Dr de Wit says many applications for funding by councils under previous Royalties for the Regions rounds had been rejected, showing there was still a backlog of projects in regions directly affected by the rapid expansion of the resources industry.