The Transforming British Tennis Together initiative aims to make the sport more accessible.
Over the next 10 years, it will raise the number of covered and floodlit courts by 50%, refurbish facilities and make courts easier to book online.
The LTA's Alastair Marks said: "We're focused on getting the next generation of players on court and having fun."
Get Inspired: LTA's £250m for better tennis access
The governing body will invest £125m to improve existing community facilities and is hoping to source a further £125m through matched funding.
Only 7% of Britain's 23,000 courts have covers and one in seven park courts have floodlights.
With the new funding, the LTA aims to deliver:
The initiative has been tried out on a trial basis in 10 towns and cities, including Sheffield, where £1.5m was invested and has increased the number of people playing tennis by 54% over the last three years.
Marks, participation director at the LTA, added: "There's never been a better time to invest in making our tennis courts the social hubs of their communities once again."
Clubs and communities can register their interest in bidding for the funding here.
The Lawn Tennis Association (LTA) is leading a £250m investment to improve grassroots facilities.