Festival committee chair Ross Eggleton welcomed the funding, saying the committee had struggled to make the festival work on its existing funds.

"This support is a wonderful boost," he said.

"It's the festival's 25th year and it may not have been able to go ahead."

Member for Kiama Gareth Ward, who will also play some violin during the March 9-11 event, said he was able to secure the funds from Barry O'Farrell's Premier's fund.

"Anything to get the Jazz Festival up and running," he said.

"Music is part of coastal life and it's an opportunity for young people to practise their skills."

Mr Eggleton said several of Kiama, Gerringong and Jamberoo's music venues, restaurants and cafes had already put their hands up to host acts.

Musicians will also wander the streets, entertaining visitors to Terralong Street as they walk.

There will also be concerts in Hindmarsh Park on the Saturday afternoon and all day Sunday.

Among the line-up will be Tommy M and the Mastersounds and James Vann solo on guitar and vocals at the Kiama Leagues Club on the Friday.

Band member Joe Mungovan described the eight-piece Mercury Bluescope Band Competition winner's sound as funky, while James said he would showcase his blues repertoire.

Meanwhile saxophonist Emilija Tanner and double bassist Jeremy Quinn will team up with Gabrielle Timpano as part of Elegant Fish to play jazz standards at the Old Fire Station - Jeremy will later play with the Alice Blue Trio at Waves at the Beach Restaurant.

"The best part is it's all free," Mr Eggleton said.

He said the extra funds from the State Government would cover sound system hire, helping venues to cover the cost of their chosen bands and event promotion.