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.
A total of £45.2m has been handed out in the first two rounds of funding, with a final round of funding - focusing on healthy lives and older people's services - set to be announced later in the year. In total £81m will be handed out via the fund.
Other beneficiaries of the second round of funding include Barking and Dagenham Council, which will receive £540,000 to reduce the number of young people who are not in education, employment or training through a one-to-one coaching programme delivered to young people in school years 10 to 12.
Meanwhile Norfolk County Council will receive £1.2m to reduce the number of days children and young people spend in care. And Harrow Council will receive £1.9m for a project offering flexible therapeutic support through a new mobile phone app with 24-hour accessibility enabling young people to plan, co-ordinate and progress towards their goals.
Civil society minister Tracey Crouch said: "The Life Chances Fund is helping transform lives across the country and I am looking forward to seeing how these fantastic projects use this funding to benefit children and young people, teaching them valuable life skills."