It is hoped the vaccinations will halt the spread of TB from hotspot areas in the South West and West Midlands.
Groups will be offered funding of up to 50% of the costs for vaccinating.
The move comes as the government prepares to cull more than 1,000 badgers in west Gloucestershire and west Somerset.
Areas identified for vaccination include Cheshire, Derbyshire, Nottinghamshire, Leicestershire, Warwickshire, Northamptonshire, Buckinghamshire, Oxfordshire, Berkshire, Hampshire and East Sussex.
The aim is to create a "buffer" zone to prevent the spread of the disease in new areas of the country where incidence is currently low.
The programme is part of the government's strategy to achieve bovine TB free status in England by 2038.
The scheme has been welcomed as "fantastic" by Dominic Dyer of the Badger Trust and Policy Advisor at Care for the Wild.
"Badgers are no more than a minor player when it comes to bovine TB... culling them is a completely pointless, unscientific and ultimately unsuccessful way of dealing with this small percentage of infectious badgers," he said.
Projects considered eligible for the Badger Edge Vaccination Scheme (BEVS) need to be predominantly close to the borders of the hotspot areas and must cover a minimum area of about nine sq m (15 sq km).
Nigel Gibbens, the UK's Chief Veterinary Officer, urged groups to take advantage of the offer to help stop the spread of the disease.
"We know vaccination cannot cure badgers already carrying TB, but used in the right areas, it can play a vital role in creating a barrier to the disease's spread," he said.
Culling of badgers is due to begin again in Gloucestershire and Somerset, with the maximum number of badgers that can be culled set at 1,091 in Gloucestershire and 785 in Somerset.

YouTube said the video - its most watched ever - has been viewed more than 2,147,483,647 times.
It has now changed the maximum view limit to 9,223,372,036,854,775,808, or more than nine quintillion.
Gangnam Style became a worldwide hit when it was released in 2012, largely due to the surreal video.
How do you say 9,223,372,036,854,775,808?
Nine quintillion, two hundred and twenty-three quadrillion, three hundred and seventy-two trillion, thirty-six billion, eight hundred and fifty-four million, seven hundred and seventy-five thousand, eight hundred and eight.
Why was Psy nearly too much for YouTube?
YouTube's counter previously used a 32-bit integer, which is a unit used to represent data in computer architecture. This means the maximum possible views it could count was 2,147,483,647.
On 1 December, it  posted a statement saying: "We never thought a video would be watched in numbers greater than a 32-bit integer... but that was before we met Psy."
Google, which owns YouTube, later told website The Verge that engineers "saw this coming a couple months ago and updated our systems to prepare for it".
YouTube now uses a 64-bit integer for its video counter, which means videos have a maximum viewer count of 9.22 quintillion.
Psy has yet to comment although news of YouTube's change was posted on his Facebook and Twitter pages.
The second most-watched video on YouTube - Baby by Justin Bieber - lags behind Gangnam Style by more than a billion views.
A scheme to vaccinate badgers against bovine tuberculosis in a bid to tackle the disease in cattle has been launched by the government.
[NEXT_CONCEPT]
The music video for South Korean singer Psy's Gangnam Style exceeded YouTube's view limit, prompting the site to upgrade its counter.