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U.S. Transportation Secretary Ray LaHood joined Sen. Charles Schumer for the announcement Friday in Lower Manhattan.

The money, which is a reimbursement, will be split across areas of the state that sustained damage to fix roads, guardrails and traffic signals.

Some of it will cover the work the city has already done to repair the Brooklyn Battery Tunnel after it was flooded with 100 million gallons of water.

But they also said this would free up the city to make more repairs.

"It means now that they have been reimbursed they can use those dollars to start doing other repairs that are needed. If the money hadn't come quickly it would hold things up," Schumer said.

The money is being fast tracked thanks to the Sandy relief bill providing $2 billion in funding for emergency Highway Relief.

Officials also said Friday that more money for mitigation to shore up the city and state's transportation infrastructure is coming.

"That's what we are in the process of doing is taking a look at what makes the most sense. Whether it's gates, whether it's balloons whether it's oyster beds. You have to take a look at what's out there," said city Department of Transportation Commissioner Janette Sadik-Khan.

The Bloomberg administration is expected to release a report in May detailing what they plan to use the reimbursement cash for.