Minister for Local Government Shelley Hancock said eight organisations had received grants of up to $20,000 for innovative programs and projects that promote cycling throughout the Illawarra.
"The 2022 UCI Road World Championships provide the Illawarra with a once-in-a-lifetime opportunity to witness the world's best cyclists in action," Mrs Hancock said.
"The Legacy Partnership Program is leaving a legacy that is boosting the sport across the region."
Minister for Sport Natalie Ward said the program was a three-year initiative of the Wollongong 2022 Local Organising Committee in collaboration with the NSW Government.
"The Legacy Partnership Program provides grants for projects and initiatives that promote cycling and enhance bike safety," Mrs Ward said.
"I congratulate the eight organisations that were successful in securing a grant and look forward to the benefits they will provide the Illawarra cycling community."
Chair of the Wollongong 2022 Local Organising Committee Dean Dalla Valle said the Legacy program continues to support tangible infrastructure and education programs to increase participation opportunities for the local cycling community and support the promotion of the 2022 UCI Road World Championships.
"The 2022 UCI Road World Championships Legacy Fund enables the Illawarra community to share in the benefits of hosting one of the world's most prestigious sporting events," Mr Dalla Valle said.
"We want to thank the NSW Government for its continued commitment to both cycling and the 2022 UCI Road World Championships."
The announcement of Round 2 recipients coincides with the launch of the Illawarra Shoalhaven Joint Organisation Regional Cycling Tourism Strategy, which received funding of $20,000 through the first round of the grant program.
The successful recipients are Russell Vale P&C Association, Wollongong City Council, Nowra Velo Club Inc, Healthy Cities Illawarra, UOW Pulse Ltd (Cycling Club), Warilla High School, Illawarra Cycle Club and Yesterday Stories Pty Ltd.
The launch of the strategy will see the region leverage the Wollongong 2022 event as it aims to become one of Australia's premier cycling destinations.
