T Levels are equivalent to A Levels and will be taught at more than 50 further education venues from 2020.
Construction is one of the first technical subjects on offer alongside education and digital.
Construction courses will focus on design, surveying and planning.
The £38m will make sure young people taking the new technical courses have access to industry standard equipment and high quality facilities to “gain the skills and knowledge employers demand.”
Apprenticeships and Skills Minster, Anne Milton said: “T Levels are a once in a generation opportunity to transform technical education in this country.
“They will give young people the opportunity to gain the skills they need to get a great job, go on to do a higher level apprenticeship or further study.
“It will be vital that they have access to the latest, high quality equipment and state-of the art facilities during their studies.
“The T Level Capital Fund will help those further education providers at the forefront of delivering these important reforms to be ready to teach T Levels from September 2020.
To support the further education sector to deliver the new T Level programmes, the government will provide an additional half a billion pounds every year once they are all fully rolled out.