Community groups given $40m in grants

More than 100 community service groups will get a share of $40 million to keep operating, following a review of a controversial government funding process.

The federal government was criticised last year after some homelessness groups were told a week before Christmas their contracts would not be renewed.

On Wednesday it announced 94 organisations would be given new contracts following a review of the funding rounds, with a further 17 mental health service providers yet to be sourced.

Groups supporting those with autism, the deaf or hard of hearing, children's playgroups, seniors, those under financial stress and neighbourhood centres will get funding until June 30, 2017.

Social Services Minister Scott Morrison said the funding would ensure services will continue to be there for those who need them.

"There are only winners from this announcement today," he told reporters in Melbourne on Wednesday.

More groups could be given contracts if they were needed, he said.

The Department of Social Services implemented a controversial new tendering round last year after its grants budget was cut by $240 million.

This in turn forced dozens of social services groups to re-apply for funding.