The £85.9m Liveable Neighbourhoods programme is available for boroughs to bid for funding for for long-term schemes that encourage walking, cycling and the use of public transport.
Grants of between £1m - £10m are available for a wide range of community-supported projects, potentially including the creation of green spaces, new cycling infrastructure, redesigned junctions and the widening of walking routes to improve access to local shops, businesses and public transport.
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Mayor of London, Sadiq Khan, said the fund can make a "real difference" by supporting the projects that local people want to see.
"I've set out bold plans to transform the way Londoners move around our city to improve our health, air quality and future prosperity," he said.
"London's boroughs are key partners in delivering this vision and through this new funding we can make a real difference by supporting the projects that local people want to see.
"This will ensure that the improvements really work for our local communities, transforming our town centres and successfully encouraging many more Londoners to walk, cycle or use public transport for the good of their health and our environment."
Cllr Julian Bell, Chair of London Councils' Transport and Environment Committee, said: "London's boroughs work hard to transform neighbourhoods and provide additional facilities for local people and visitors to enjoy. We welcome this funding, which will help us create beautiful and – crucially - functional spaces where we can promote sustainable methods of transport, such as walking and cycling, and reduce the impact of pollution."
(LM/MH)
