The capital settlement will finance schemes identified by councils in the second round of local transport plans submitted last year.
The sum includes £2.2 billion for highways maintenance and £1.8 billion for smaller schemes. This covers bus infrastructure, cycle lanes, road safety measures, better street lighting and road maintenance.
The funding is in addition to £7.9 billion pledged for major transport projects up to 2016 through the regional planning allocations.
Previous settlements were made annually, but the revised process allows councils to plan for the future.
