Under the UK Shared Prosperity Fund (UKSPF) , £42m will be given to the area to help regenerate communities, tackle economic decline and reverse the UK’s geographical inequalities.
Leaders across the Tees Valley will decide how it is spent, directing it to the most deprived areas.
The funding is being introduced by the Department for Levelling Up, Housing and Communities to match previous funding from the EU.
Minister for Levelling Up, Neil O’Brien, said: “The UKSPF will allow local leaders and communities in Tees Valley to directly tackle the issues affecting their local area, whether that’s youth employment or high street regeneration.
“This new and innovative approach to empowering local communities is a key part of our levelling up agenda, now unshackled by previous EU restrictions.
“I look forward work closely with local leaders in Teesside to see the creative, ambitious choices that communities make as they level up and take charge of their destinies.”