Withernsea and Hornsea will remain out of the East Coast funding area, and together with Goole will receive no money under Objective 2.
"This is terrible news for these very deserving areas and I am furious at the Government's appalling decision.
"The European Commission made it clear to the Government that it was not happy with their proposals and it felt that areas like Withernsea, Hornsea and Goole should be included.
"The Government's decision means that a whole range of community projects are put at great risk and some will no longer go ahead at all."