A total of £85.9m will be available through the Liveable Neighbourhoods programme to give boroughs the opportunity to bid for funding for long-term schemes.
The programme will provide grants of between £1m-10m for a wide range of community-supported projects, which could include the creation of green spaces, new cycling infrastructure and the widening of walking routes.
“I’ve set out bold plans to transform the way Londoners move around our city to improve our health, air quality and future prosperity,” said Mr Khan.
“London’s boroughs are key partners in delivering this vision and through this new funding we can make a real difference by supporting the projects that local people want to see.
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“This will ensure that the improvements really work for our local communities, transforming our town centres and successfully encouraging many more Londoners to walk, cycle or use public transport for the good of their health and our environment.”
Cllr Julian Bell, chair of London Councils’ transport and environment committee, said London’s boroughs had worked hard to transform neighbourhoods and provide additional facilities for local people and visitors to enjoy.
“We welcome this funding, which will help us create beautiful and – crucially – functional spaces where we can promote sustainable methods of transport, such as walking and cycling, and reduce the impact of pollution.”
Leon Daniels, Transport for London’s managing director of surface transport, added that it wanted London to remain a world-class city by creating more attractive, accessible, people-friendly streets.
“Through Liveable Neighbourhoods we are keen to ensure that local communities are at the centre of plans to transform access to walking, cycling and public transport in their local area.
“With the public’s support, we hope people will think twice about jumping in the car for short journeys, improving health and reducing air pollution – two key elements which we believe will make a difference to the lives of Londoners.”