A motion to apply to Regional Development Victoria for the project's funding, estimated at $2,100,000, was defeated at the meeting.

The special council meeting was held to decide on the application before applications closed later this month.

Councilors Di Bell, Ian Ross, Claudia Haenel, and David Bowe voted against the motion.

At the meeting, Cr Bell said she had concerns about the planning and research of the project.

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"I am not against a pedestrian bridge at Hamilton Street, however, I am against the bridge being put forward as a priority tonight," Cr Bell said.

Earlier in the meeting, a motion was passed to continue the footbridge's planning, meaning the planning of the project will continue without an application for Victorian government funding.

The defeated motion looked to organise an application to Regional Development Victoria and allocate federal government funds towards the project.

The federal funding came from $1,475,924 given to the Council under the Local Roads and Community Infrastructure program.

Mayor Robyn Gulline said the project's funding had been put on hold as Council reconsiders how to fund the project.

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"We still have time to revisit the funding. At this point the project has stalled until we reconsider how we might finance it," Cr Gulline said.

This comes after councillors defeated a motion at a meeting on February 22 to immediately suspend all works, including grant applications, for the Hamilton Street Bridge.

The motion was tabled by Cr Di Bell, who said the Council needed to consider the priority of building the bridge and the value of the project.

After the meeting, Cr Power said he looked to see Horsham residents voice their opinion over the proposed footbridge.

"As a citizen of Horsham, I am asking people to vote with their mouth. I'd like people to ring council offices, I would like to see this done in a professional manner," Cr Power said on Tuesday.

"The council needs to know what is the real public decision of this Hamilton Street bridge."

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