A Senate inquiry is examining the Major and Local Infrastructure Program, including a $6 million grant to the Marrickville Golf Club in Prime Minister Anthony Albanese's electorate of Grayndler.
The scheme has been criticised following allegations it favoured safe and marginal Labor electorates rather than a merit-based selection process.
Established in September 2025, the invite-only program meant only organisations identified by the federal government could apply.
But during Thursday's hearing, Greens deputy leader Steph Hodgins-May said it was "astonishing" so many organisations were locked out.
The inquiry comes after a September 2026 report said the program raised serious integrity concerns, finding around three-quarters of grant funding flowed to electoral divisions held by Labor, while 45 electorates received nothing.
Department of Infrastructure officials Lisa Lauter and Jacinta McDonald gave evidence that the program's closed and non-competitive process did not mean automatic approval, and that applicants were assessed against a set of criteria.
"Every invited organisation had to submit an application, demonstrate eligibility, merit and value for money," Ms Lauter said, adding that the department did not select or provide advice on projects, applicants, locations or funding amounts.
On the second day of the hearing, multiple witnesses were unable to clarify who approved the prime minister's April 2025 announcement of the golf club's funding.
Nationals senator Bridget McKenzie became increasingly exasperated by the amount of questions taken on notice by representatives from the Department of Prime Minister and Cabinet.
"It's hard not to be concerned," Senator McKenzie said.
Liberal senator Paul Scarr also challenged the department's choice regarding witnesses, saying the committee was denied the ability to ask questions of people with necessary knowledge.
The prime minister and Infrastructure Minister Catherine King declined invitations to appear before the inquiry.
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