Rail trail supporters have vowed to intensify their campaign to complete the Northern Rivers Rail Trail after the federal government rejected funding for the project’s remaining sections.

The Northern Rivers Rail Trail Supporters group says last week’s funding setback has only strengthened community resolve to finish the 132-kilometre trail linking Murwillumbah and Casino.

The group has been advocating for the project since 2013 and says more than 200,000 people have already used the completed sections over the past two years.

Supporters argue the popularity of the existing trail demonstrates the economic and tourism potential of completing the remaining 74-kilometre “missing link” between Crabbes Creek and Lismore.

Northern Rivers Rail Trail Supporters president Pat Grier said the campaign would continue despite the disappointment.

“This project is already delivering for our region, and we are seeing first-hand the benefits it brings,” Mr Grier said.

“Completing the trail will take that impact to the next level, creating a connected experience that attracts more visitors and drives long-term economic growth.”

The latest push follows confirmation that a joint funding application from Byron Shire and Lismore councils seeking about $44 million was unsuccessful.

The application would have funded the unfinished sections linking the existing Murwillumbah-Crabbes Creek and Casino-Lismore trails.

Supporters say all four councils along the route — Tweed, Byron, Lismore and Richmond Valley — continue to back completion of the project.

An independent business case commissioned for the project found a completed trail would increase visitation, create new business opportunities and generate jobs and spending across the Northern Rivers.

Advocates also argue the trail would provide a safer alternative for cyclists and pedestrians, reduce reliance on busy roads and improve connections between communities.

“The remaining sections are the missing link,” Mr Grier said.

“Once complete, this will become a seamless, safe corridor connecting communities from Murwillumbah through to Lismore and beyond.”

The group is now encouraging supporters to publicly back the project as it prepares for the next round of funding opportunities.

“The next funding phase will be critical, and we are ready to work constructively to give this project the best possible chance,” Mr Grier said.

The supporters group says it remains confident the project’s long-term economic, tourism and community benefits will ultimately secure the funding needed to complete the trail.