Mr Blakester said the argument the state government should solely fund the campus "doesn't hold water".
"Sometimes they like to put a hard line in what is state and what is federal, but you don't have to dig very hard to find examples of funding going to different things," he said.
"Uni campuses have been given money by the federal government before."
NEW England MP Barnaby Joyce is still confident of getting $10 million for the Tamworth university campus, but won't make it an election commitment. The University of New England (UNE) is planning to build a 500-person campus in the city's CBD, and has already received $26.6 million from the state government.