Millions of dollars in funding has been put on hold by the change in federal government, and many community groups fear they will never see the money.

The Police Citizens Youth Club says the axe is hanging over many of its vital programs, which keep kids off the streets and away from criminal behaviour.

PCYC grants had been approved under the National Crime Prevention Funds program in August, but with the new government arriving in September they whole thing was thrown into doubt.

The PCYC and other community groups have reportedly been told their funding will be held back until a government review. There are collective fears that a broad range of programs, community groups and charitable works will no longer be possible.

Nationwide, the PCYC was expecting to receive $7 million for projects aimed at helping young people at risk.

“We've already made commitments to these programs to get them underway in the community and employ people,” head of the Tasmanian PCYC, Darren Clark said.

“I've got staff sitting around who aren't doing anything productive, making any money...to keep the doors open,” said John Jessop, from a related youth training organisation.

“Those young people aren't getting jobs, everything's grinding to a halt and it could in fact threaten our ongoing viability.”

Justice Minister Michael Keenan says the previous Government should not have promised the funding with the election so soon after, and that the Coalition is more interested in funding grants for CCTV cameras and better lighting.