The Welsh Assembly's Reach the Heights initiative will target 11- to 19-year-olds across west Wales and the Valleys to help them secure better future prospects.
The scheme, which aims to support around 30,000 children and young people, will include two projects.
One will target those most at risk of leaving school and not participating in education, employment or training, and the other trying to raise the skills and aspirations of young people and expanding opportunities to gain work related skills.
Jane Hutt, Wales' minister for children, education, lifelong learning and skills said: "We have committed substantial funding to Reach the Heights so we can deliver on our goals to help those most at need. Work will be strategic and collaborative with our joint sponsors on their project."
Sponsors of the scheme include the Arts and charities Children in Wales and Save the Children.
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