Pioneer Lodge's chief executive officer Robert Bonomi said last week's Commonwealth government announcement would enable the nursing home to expand to a total of 95 much-needed beds.

"These extra beds will be in a separate unit to cater for the special needs of residents suffering from advanced dementia," Mr Bonomi said.

"This announcement closely following that of the private hospital agreement being signed is more good news for Griffith.

"The 20 extra beds will generate 20 extra full-time, part-time or casual jobs."

Mr Bonomi said the new unit would cost about $4 million to build and $1.3m in annual running costs.

"The build cost is relatively low as the existing infrastructure can handle up to 100 residents and our total number of residents will only be 95," he said.

Member for Riverina, Michael McCormack, said the announcement was a big win for the city.

"I am pleased the Riverina has won 44 additional beds for aged and palliative care in Wagga and Griffith," he said.

"It is essential to provide age care services to the people in the Riverina 20 new beds for Griffith is a great result."