About 400 people walk between the Devon villages in support of a campaign to get a road repaired.
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Residents say the news is a "massive relief" locally after winter storms damaged the area's sea defences.
South Devon MP Caroline Voaden says the funding is "really great news" for the area.
A university professor says the change at Torcross means "waves won't slam directly" into a seawall.
A councillor says a "huge amount of hard work" has gone into repairing the facilities.
An MP says there are "no promises" the route will be repaired after a section broke up and washed away.
People living near a storm-hit coastal road that broke up into the sea say it is vital to their economy.
Engineers have been using diggers to position boulders along the shoreline of the A379 at Torcross.
