THERE are concerns the Federal Government's university funding freeze will threaten Southern Cross University's proposed allied health facility.

The $12-million allied health sciences facility, to be based at the Coffs Harbour campus, would offer courses in areas including mental health, nursing and midwifery, paramedic nursing, Indigenous health and exercise science.

However, Regional Universities Network today released a statement saying SCU will not receive funding to enrol students into the courses.

The freeze on the Commonwealth Grant Scheme to 2017 levels applies to all bachelor degrees and came into effect on January 1.

"While the government has provided funding to construct the facility - which is due to start imminently - Southern Cross University will not be funded to enrol any students into the new courses," the statement read.

"Although regional communities were on the brink of benefiting from new education and work opportunities, many new initiatives will be put on hold as a result of the decision to freeze funding for Commonwealth Grant Scheme places for two years."

However, Member for Cowper Luke Hartsuyker, who pledged Federal Government funding for the development ahead of the 2016 Federal Election, responded saying these fears were unfounded.

"There is a cap on funding based on 2017 levels for the subsidies component, but there is an awareness that there a range of commitments, such a building the new allied health facility," Mr Hartsuyker said.

"Clearly, this is a new student load that didn't exist before, and therefore it is clear it needs student funding to support the places.

"From my understanding, Southern Cross University are in discussions with the Minister's office. There is an understanding that there are a number of universities that have special cases such as this.

"In short, discussions are ongoing with Southern Cross University and the Government, and the allied health centre is yet to be built."

In 2016, the Federal Government announced it's investment of $12million for stage one of the new allied health building. An SCU Health Clinic will also be established on the site.

Southern Cross University has been approached for comment.