Prime Minister Scott Morrison has intervened to boost the government's food relief budget to ensure a charity that feeds 710,000 people a month retains its funding.
Foodbank was facing the prospect of cutting services for the needy after it lost $250,000 a year when the government redistributed the relief budget to spread funds between three providers rather than two.
"I have listened and decided to increase the Food Relief budget by $1.5 million over the next 4.5 years," Mr Morrison announced on Twitter on Tuesday.
"This maintains Foodbank's funding at $750K/yr, with Second Bite and OzHarvest funded as announced last week."
The total food relief budget will now rise to $6 million.
OzHarvest, which became the third charity to receive government support, says the redistributed funds will allow it to provide 5.6 million meals next year.
Mr Morrison has also asked Social Services Minister Paul Fletcher to place more focus on delivering food relief in drought-affected areas.
"Important that food relief in drought areas is delivered in a way that does not undercut local businesses. Minister will work with providers to get the right plan in place," he said.
Labor leader Bill Shorten said the initial decision to spread the funding between three charities was "mean and foolish".
"The government knew it made a mistake. We've won that battle," he said, praising the efforts of people on social media as well as Foodbank and the National Farmers Federation.
The Greens secured support for a Senate motion on Tuesday calling on the government to commit to long-term funding of organisations like Foodbank, OzHarvest and Second Bite.
Mr Fletcher has invited the heads of Foodbank, Second Bite and OzHarvest to a roundtable to discuss the new arrangements and "coordinate a continuing collaborative approach to food relief".
Foodbank on Monday warned its Key Staples program - which makes sure essential supplies like rice, bread and vegetables get to needy people - would be at risk with its federal government funds cut from $750,000 to $427,000 a year.
The program involves food manufacturers producing food using spare production capacity and suppliers donating or subsidising ingredients, packaging and deliveries.
Foodbank provides 67 million meals a year to charities across the country, and is Australia's largest food provider to schools for breakfast programs.
Australian Associated Press
