North Lincolnshire Council successfully secured £469,200 from the government's £21m Sustainable Travel Fund.
The funding will support the recently launched CallConnect bus service and a number of cycling initiatives to be launched across North Lincolnshire throughout next year.
In total, some 23 sustainable travel initiatives across the country were each awarded a share of the government fund.
The aim of the scheme is to boost local economies by supporting people to get to work and education using a cheap, clean and healthy travel option.
See also: Expansion for innovative bus service
Rather than operating a fixed route, the CallConnect flexible bus service allows people to book via phone or internet and be collected from their local area at a time convenient to them.
Deputy council leader Rob Waltham said: "Sustainable transport offers people a cheap and healthy way to access jobs and education.
"The CallConnect flexible bus service improves transport opportunities in rural communities and market towns where there is an infrequent conventional bus service."
Many people have already registered for the service, which is already available in the Brigg, Ridge, Barton and Ferry areas.
Bookings continue to increase each week and the CallConnect service will be rolled out to more areas later this month and during July.
The new cycling initiatives aim to encourage more people to get on their bikes. They are likely to include bike maintenance sessions, cycle training and better cycle maps.
Councillor Waltham said: "Our new cycling schemes will make a real difference to residents and businesses by helping to cut congestion and improve air quality.
"Residents will be given the skills, confidence and resources to travel on two wheels."
"This is a significant investment that will boost our local economy by supporting people to get to their place of work or education."