A slice of £7.2m will be spent in Nottingham to improve public transport and reduce congestion.
The money will be spilt between Nottingham and Derby but also aims to better connect the two cities.
The money has been released by the Department for Transport following a successful bid by Nottingham and Derby City Councils.
This includes new bus priorities at five junctions along the A52 and smart cameras to collect data with the aim of improving areas blighted by congestion.
More screens providing real time travel information to bus passengers will be installed, as well as the ability to pay for Robin Hood tickets through smart phones, while tram passengers will be able to use contactless payment at ticket machines.
The funding will also support new electric charge points at park and ride sites, and a new cycle hire scheme in Nottingham.
And walking and cycling routes will be upgraded, including work to reduce congestion on the Beeston Canal towpath.
Councillor Jon Collins, leader of Nottingham City Council , said: "The Transforming Cities fund is all about making it easier for people to get around, opening up new job opportunities and supporting our aim to keep Nottingham moving.
"With this funding we'll be able to make improvements for walkers, cyclists, public transport users and motorists too.
"We’re working closely with Derby City Council to provide a seamless integrated transport network that’s efficient, easy to use and supports local business growth and our regional economy."
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Councillor Chris Poulter, leader of Derby City Council added: "This is excellent news for our two cities, and this funding will build on the significant investment already made towards the development of our ambitions for a fully integrated, greener and healthier strategic infrastructure plan for Derby.
"As a council, we are committed to improving air quality, cutting carbon emissions and making all sustainable transport in the city more accessible and more attractive to people.
"We very much look forward to continuing to work closely with Nottingham City Council, transport providers and partners to improve connectivity around the region."
Announcing the funding, Transport Secretary Chris Grayling said: "Technology is at the heart of our future economic success, and the great cities of the Midlands Engine are leading the way in this space.
"Our investment in the region will bring the transport systems needed to deliver a prosperous future for residents and businesses."
