Local authorities across the country were delighting in their share of £2.1bn of government round two Levelling Up funding but the South Hams is not to receive a penny.
Last summer South Hams District Council put in a bid for between £15m and £20m for work on the A38 corridor including the Lee Mill Interchange.
It would have blended public bus and rail transport, cycling and car use as well as promoting cycling and walking and ensuring accessibility to all.
Other parts of Devon fared better with £13.5m for a new railway station in Oakhampton and £16m for projects extending Dinan Way and improving the Exmouth Gateway along with £15.6m going to Appledore Clean Maritime Innovation Centre.
Plymouth, Torquay and Ilfracombe missed out on funding.