During a visit to Anglicare in Parramatta on Thursday, Housing Minister Tanya Plibersek said the funding would be used over the next 18 months to expand Anglicare's Reconnect homelessness programs for young people .

These include early intervention for 12-18-year-olds who are homeless, or at risk of becoming homeless, and support for 12-21-year-olds who have arrived in Australia in the previous five years.

About 250 young people in the area are expected to benefit from the program each year.

The Reconnect program helps young people stabilise their lives by encouraging them to re-engage with their family and the community and be involved in education, training and employment.

``Reconnect programs also work closely with other services in the community to help young people,'' Ms Plibersek said.

Parramatta MP Julie Owens said the extra services meant more young people at risk would be able to find support.