The funding is very welcome and indeed very much needed. However it should be noted that the level has been reduced by some 38% ( down from £17.5m to £10.75m)
RL isn't the only sport to suffer a reduction

Wales RL are set to lose £70k in funding (for development) from the RFL. The Wales students are having to fund their own costs for the Student Word Cup in Sydney July 2017. Not a pot to pee in......

So are England students, they always do.

Sport England funding obviously can't be spent in Wales, Wales probably has an equivalent fund.

In terms of funding for general RL development in Wales, this should be coming from World Cup profits, rather than the RFL IMO, along with money for other emerging RL nations like PNG, Fiji, Canada and France.

From the Wales RL site in November 2016.
"And with the Rugby Football League confirming this month that they are withdrawing their £70,000 annual support to WRL for junior development....."

What with the Conference League South folding.....so much for pathways and expansion. It all seems to be shrinking. No money.

I don't think that a penny of that money should be spent above League 1. The grassroots of the game need massive investment and protection.
If that part of the game can be secured then the rest of the pyramid will fall into place