The Coastal Grasslands Reconnected Project will focus on an area between Nose's Point and Horden.
More than 200 hectares of "rare" coastal habitat are to be restored alongside efforts to create a wildlife corridor.
The money will be used to support the management of the habitats through fencing, installation of water sources, baling and surveys.Councillor Mark Wilkes, cabinet member for neighbourhoods and climate change, described the county's coastline as home "to the unique and very rare magnesian limestone grassland".
"Not only will this project help us to restore and protect the native and biodiverse habitats of our coastline, it also supports our work to tackle the county's ecological emergency and reverse the decline in important species and habitats."
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