Money generated from Bradford’s Clean Air Zone (CAZ) will be spent on tackling pollution around schools.
Bradford NHS figures show pollution from vehicles is linked to about 38% of the city’s childhood asthma cases.
The council said measures to reduce emissions would include cracking down on parents sitting in cars with the engine running during pick-up times.
The CAZ, which began on 26 September, aims to cut pollution and reduce its impact on people’s health.
The zone has brought in almost £4.5m in charges and fines in its first six months of operation.
The council said the Clean Air Schools programme was the first project to be funded with revenue from the CAZ.
It means schools will be able to apply for grants to introduce measures to reduce emissions and air pollution.
As part of the programme, the council will increase the number of wardens working with schools to increase education and enforcements on drivers parking near schools.
Specific grants will also be available to schools to reduce emissions further, particularly in areas of the poorest air quality.
Health research in Bradford has indicated the biggest health benefits from the cleaner air will be felt by the most disadvantaged communities in the city, according to the council.
Cllr Sarah Ferriby, Bradford Council’s Executive Member for Healthy People and Places, said toxic fumes from vehicle engines are “proven to cause health problems to young children” and affect their educational attainment.
She added: “Working in partnership with schools we will strengthen enforcement and tackle harmful pollution near the school gates.”