Newport will receive up to £20 million funding.
The UK Government funding is part of the Pride in Place Programme which will see £180 million shared among nine local authorities over the next decade.
In Newport, the money will support regeneration of the city centre, with the Sirhowy Valley in Blaenau Gwent also selected for investment.
Investment in Caerphilly will focus on Aberbargoed, Bargoed, and New Tredegar.
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Councillor John Morgan, cabinet member for economy and place at Blaenau Gwent council, said: "This is fantastic news for the Sirhowy Valley.
"The funding will make a real difference to our communities and fits in with our wider regeneration plans for the area.
"The Blaenau Gwent Deal, our new way of working with communities, means we are listening to local people and businesses about their needs, so having a Neighbourhood Board involved in making decisions fully supports this."
Neighbourhood boards will be set up to guide how the money is spent, with investment set to begin in April 2026.
Projects could include revitalising high streets and town centres, preserving local heritage, providing housing, creating jobs, boosting productivity and skills, improving health and well-being, creating new transport links, providing education and opportunity and improving safety and security.
In addition to the major funding, every Welsh local authority will receive a share of £34.5 million for public space improvements, such as fixing broken bus shelters, reopening park toilets, more bins to help stop litter and revamping run-down leisure centres.
Welsh secretary Jo Stevens marked the announcement by visiting one of the areas allocated funding, Tredegar in Blaenau Gwent, to hear from members of the community on how the money could be spent.
She said: "The funding will make a real difference to our communities and fits in with our wider regeneration plans for the area and our emerging Blueprint for Growth Strategy."
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