Sheffield Council will receive £19.3m from the Department for Digital, Culture, Media and Sport's Life Chances Fund - the largest amount of money handed out in the second round of funding, which in total comes to £28m.
The government said the money will be used to establish local projects to help tackle a range of issues from mental health and wellbeing to homelessness and youth unemployment.
It added that the money will "transform the way public services are delivered in Sheffield".
The Life Chances Fund, which was launched in July 2016, is designed to support projects working across six themes, of which the second round - focusing on early years and young people - opened to expressions of interest in January 2017.
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