The funding will be used for platform extensions for longer trains, trackside upgrades, and larger depots across the region.
As part of the Secretary of State’s Manchester Recovery Task Force’s (MRTF) plans, the funding will help upgrade infrastructure to improve day-to-day journeys of train passengers in the North West.
Currently, works are in process to modernise track-side equipment between Manchester and Liverpool, as well as extend platforms on the Cumbrian route.
It will help the launch of longer trains with extra seats, as well as implement upcoming timetable changes across the region.
Works related to extending platforms in busiest routes across the North West and West Yorkshire will be carried out next year.
UK Rail Minister Wendy Morton said: “The Transpennine Route Upgrade, the Integrated Rail Plan and Northern Powerhouse Rail will transform the lives of passengers across the region for generations to come.”
Essential development works will also be carried out using the funding to continue projects across Greater Manchester to better serve passengers across the North West.
The work will offer enhanced passenger facilities at Manchester Piccadilly, Victoria, and Manchester International Airport stations.
It will also enable resignalling along the Castlefield Corridor along with remodelling of Manchester Oxford Road station.
Electrification and resignalling of the line and track renewals will be conducted as part of the Transpennine Route Upgrade (TRU).
TRU is said to lead the way for Northern Powerhouse Rail. The programme is designed to improve rail travel in the North, which includes journeys between Liverpool, Manchester, Leeds, and York.
Additional track and signalling upgrades will be carried out in the next stage of TRU.
All these works are in addition to the £96bn Integrated Rail Plan investment programme, which aims to improve rail services across the North and Midlands.