Premier Daniel Andrews announced the relief measures on Tuesday, along with $5.5 million for food packages and a warning the flood crisis was not over.
"Significant challenges" lie ahead as Victoria braces for more extreme weather in coming days, Mr Andrews said.
"There is more rain on its way by the end of the week, particularly for northern Victoria," he told reporters on Tuesday.
"That'll see renewed water rising and flooding, potentially not exceeding the peaks we saw over the weekend, but still very significant challenges."
As some communities start the clean-up, extra support is being offered for families with children in kinder and schools.
Those directly impacted by floods can send their three and four-year-olds to kinder for free for term four.
At least $2 million in grants will be provided for damaged sessional kinder services.
Additionally, a $5.5 million food relief package is being offered to ensure flood-affected families don't go hungry.
About $1 million will go towards regional food hubs and multicultural food providers for the state's most diverse communities.
The Australian Defence Force and other agencies will be tasked with delivering supplies to cut-off towns, Mr Andrews said.
"It's very much determined on a case-by-case basis," he said.
With some final VCE exams already under way, the state government will also provide support for students impacted by floods.
Derived Examination Scores will be available for students who cannot sit their exams to ensure results accurately reflect expected levels of achievement.
Students can also apply for special consideration if they can complete their exams but are still affected by flooding.
A dedicated hotline for schools and students will also be established.
Mr Andrews visited Shepparton on Tuesday morning, where floodwaters are finally receding.
It comes as several towns in Victoria's north continue to build sandbag walls, with the rising Murray River expected to peak from Wednesday.
Evacuation warnings are in place for people in Echuca and other towns, with concerns river levels could exceed the 94.77 metres recorded during the 1993 floods.
There are also concerns the rural town of Kerang, about 95 kilometres northwest of Echuca, will become isolated due to floodwaters.
Major flooding at Kerang along the Loddon River is expected overnight into Wednesday, with the water forecast to peak around the January 2011 level soon after.
A sandbag levee is expected to help keep the majority of the town dry, but it could be cut off for up to seven days.
A warning has also been issued for the Wimmera River, with Horsham residents told major flooding is possible from Wednesday morning.
Residents in the small town of Barmah, near Shepparton, are also being told to evacuate with severe flooding expected by Wednesday afternoon.
More federal support is available for flood-ravaged communities, with the non-means tested payment of $1000 per adult and $400 per child expanded to the Benalla, Boroondara, Central Goldfields, Greater Bendigo, Loddon, Moonee Valley, Mount Alexander, Murrindindi and Yarra areas.
The assistance was already open to those in the Campaspe, Greater Shepparton, Maribyrnong, Mitchell and Strathbogie councils.
The Melbourne council is not included, despite the suburb of Kensington being flooded on Friday by the Maribyrnong River.
Flood victims have also begun moving into the repurposed Mickleham quarantine facility, with four people settling into the site on Tuesday.
The government will try to provide alternative options for those not wanting to relocate to Melbourne, Mr Andrews said.
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