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Vital transport projects in Dartford and Gravesham have been put on hold in the latest round of spending cuts.
Kent Thameside Strategic Transport Programme, a £23million scheme agreed by the previous government, is among a number of projects suspended by Danny Alexander, chief secretary to the Treasury.
But it has fared better than several other schemes which have been dropped altogether. And it is understood that £13m had already been confirmed before the latest announcement.
The Homes and Communities Agency had agreed the investment in March to help create an estimated 25,000 new homes and up to 50,000 jobs.
Officials claimed the investment would unlock a £200m programme of improvements in North West Kent over the next 15 years, including Eastern Quarry and the Ebbsfleet Valley as well as along the Thames waterside in Dartford and Gravesham.
The funding was being managed by Kent County County Council.
The decision, part of the Coalition Government's deficit reduction programme, will delay implementation of 11 key infrastructure proposals, including upgrades to the A2, improvements to the traffic systems in Dartford and Gravesend town centres, extension of the Fastrack bus system, and installation of an urban traffic management scheme.
Earlier in the year, Kevin Lynes, chairman of the Kent Thameside Regeneration Partnership, said the homes and roads programme was absolutely critical to the regeneration of the area.
Reacting to the latest announcement, he said: "Quite rightly, the new coalition government is taking stock and reviewing its capital spending programme.
"The county council and its partners in Kent Thameside will continue to press for the necessary transport schemes to go ahead.
"We count ourselves as fortunate that £13m of the £23m contribution for this essential infrastructure has been confirmed.
"Our task now is to ensure that this partnership continues to drive through efficiencies, ensuring that every penny invested results in improved outcomes for this area."