North Yorkshire County Council is boosting road maintenance spending by £2m to help local highways specialists.
The work will be organised by the council's main highways contractor Ringway.
The council said Ringway would use only a North Yorkshire workforce to carry out the repairs, either directly employed by the company, or through local subcontractors.
Wherever possible, materials will be sourced from quarries in North Yorkshire.
The extra money could pay for approximately 13,000 tonnes of macadam, to repair 3,000 further potholes. On top of that, 24,000 tonnes of macadam would fund a further 550 repairs and improvements to the network.
County Councillor Chris Metcalfe, executive member for economic development, said: "Prudent monitoring of our finances has enabled us to identify this additional money."