The Federal Government has frozen funding for a vital community mental health program, which delivers services to locals  with complex mental health problems.

The Mental Health Nurse Incentive Program is designed stop people falling through the cracks of the state health system.

130 people and families have been assisted across the region in the last two years.

It enables doctors and psychiatrists to link their patients to a highly skilled community mental health nurse, rather than having patients sitting on waiting lists, or in the "too hard basket"

CEO Shoalhaven Illawarra Medicare Local  Dr Kellie Marshall says although the program is still running, further expansion has been  halted.