More money is to be invested in a project to extend the electrification wires from York to Church Fenton.
The Department for Transport (DfT) said there would be a total of £317 million invested in the Transpennine Route Upgrade on the York to Leeds line.
A spokesperson said this would improve “punctuality, reliability and connectivity” for passengers travelling between York, Leeds and Manchester.
The DfT said the “bulk” of new funding for the Transpennine Route Upgrade would be used to deliver electrification and upgrades between York and Church Fenton.
This work is currently underway. The line carries an intensive service of TransPennine Express, Northern and CrossCountry trains.
Bi-mode trains, that can run on diesel and electric power, will be able to use the wires for more of the journey to and from Leeds.
New stations
A new public body called Great British Railways (GBR) will be taking over responsibility for managing infrastructure, issuing contracts to train operators, setting fares and selling tickets.
GBR will award contracts to private firms to run trains, with incentives based on performance and passenger numbers, while it will also absorb Network Rail.
The DfT also announced that £15 million from the New Stations Fund would go towards the construction of new stations at Marsh Barton in Exeter and White Rose and Thorpe Park in Leeds.
There is also cash for inprovements to the line from London to the East Midlands and the Port of Southampton.
Transport Secretary Grant Shapps said the package of funding would “help deliver reliable, punctual services that passengers across the UK can count on”.
“Modernising and upgrading our vital transport links is critical to levelling up every part of this country, unleashing our economy and spreading opportunity as we build back better,” he said.
The announcement also comes as Mr Shapps is due to appear before the Commons’ Transport Select Committee to give evidence on the Williams-Shapps Plan for Rail.