Grants of up to 1m are available from the fund, which is part of the Young People's Fund Wales.
The fund expects to support between six and 15 projects to develop outreach and support services for young people aged 10 to 19 who are disaffected and disengaged from society.
These may be some of the most challenging young people who have experienced multiple problems such as exclusion from school, homelessness, or alcohol and drug misuse.
Projects should "assess the young people's needs, support them in accessing services and encourage them to re-engage in constructive activities that will help to turn their lives around".
Consultation with children and young people will be a key factor in demonstrating the project is needed and welcomed by potential users.
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