The Rudd government is urging the Newman government in Queensland to put politics aside and fund Brisbane's Cross River Rail project.
Federal Labor and the state government are at odds over the funding breakdown for the $5.2 billion rail project, which includes an 18km passenger and freight line with new underground city stations.
"The time for politics is over," Prime Minister Kevin Rudd said in a statement on Tuesday.
"It is time to put the long-term infrastructure needs of southeast Queensland first."
Mr Rudd accused Queensland's Newman government of shelving the project after it requested $100 million in federal funds to be redirected to other projects in the state.
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"Without the new project commuters will be left to endure fewer, slower and less reliable rail services," the prime minister said.

