Almost £16m has been awarded to Scunthorpe from the government's Levelling-Up Fund to regenerate its town centre.
The cash comes from the third round of Levelling Up funding, announced ahead of the Autumn Statement.
The £15.9m would support businesses, create jobs and help to build new homes, North Lincolnshire Council said.
Rob Waltham, the council's Conservative leader, said: "The cash will make a huge difference to Scunthorpe."
"We know there are challenges for high streets up and down the country and with this cash we can start to move these plans forward," he added.
"We are determined to improve Scunthorpe and we will back businesses to invest so we can create a new future together."
Areas that previously missed out on funding were prioritised in the new round which was announced on Monday.
Holly Mumby-Croft, Scunthorpe's Conservative MP, said: "It is great the government has given us this extra cash.
"There is a way to go still, but with the backing of government we will be able to create a new future for generations to come," she said.
The town had previously received £10m from the Future High Streets Fund, which is being used to build an enterprise and innovation hub on the former market site, according to the Local Democracy Reporting Service.
This will also be Humberside Police's new base in Scunthorpe.
Meanwhile, the nearby Queen Elizabeth Memorial Gardens is one of the projects backed by an earlier £20.9m Towns Deal.
Earlier this month, British Steel announced plans to close the blast furnaces at Scunthorpe's steelworks.
Critics said the move could result in between 1,500 and 2,000 job losses, predominantly in Scunthorpe, leaving some town centre shops struggling to stay open.