The money, which will help the Government meet its pledge for a children's centre in every community by 2010, includes 68m earmarked for the start-up costs of extended schools.
The money will also go towards providing extra outreach workers to visit some of the most disadvantaged families, training and support for early years workers and ensuring each local authority area has sufficient childcare places.
It will also enable every nursery and children's centre to employ a graduate to lead on children's learning and development.
The Government has pledged to spend 175m of the grant on supporting private, voluntary and independent sector providers, a move welcomed by campaigners.
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