The new funding will support national, state and local preparedness and monitoring programs, as well as research into potential medical countermeasures against the H5N1 virus.
"While the risk to humans remains low, we are always preparing for any possible scenario that could arise," Health Secretary Xavier Becerra said in a statement.
"Preparedness is the key to keeping Americans healthy and our country safe."
The United States has reported 66 human cases of bird flu since the start of 2024, though experts believe the true number could be higher, with cases potentially going undetected among cattle and poultry workers.
While the virus has not been found to spread from person to person, the amount of bird flu circulating among animals and humans has alarmed scientists, because it might combine with seasonal influenza and mutate into a more transmissible form -- potentially triggering a deadly pandemic.
The funding announcement comes amid concern over how the incoming Trump administration will handle the threat.
The president-elect told Time magazine recently he would abolish the Office of Pandemic Preparedness and Response Policy established under Biden -- though it is not clear if he has the authority to do so, since it was created by Congress.
His pick for health secretary, Robert F Kennedy Jr, is a vocal vaccine skeptic who has pledged to shake up the nation's health agencies and promotes raw milk, thought to be a vector for bird flu.
Biden's administration has also faced criticism for what some consider a subpar bird flu response.
The Center for Strategic and International Studies, a Washington-based think tank, published a report last month citing an array of problems including "lagging data, incomplete surveillance, sluggish coordination, considerable mistrust, and insufficient planning and stockpiling of vaccines and therapies."
Given these shortcomings, infectious disease epidemiologist Meg Schaeffer of the SAS Institute told AFP: "In my opinion, avian influenza is going to become either a pandemic or a virus... that will become a very widespread and significant health issue for us in the next one to two years."
She urged raw milk consumers in particular to "take a pause on that consumption."
Adding to concerns, a virus sample from a critically ill patient in Louisiana has shown signs of mutating to better adapt to human airways, although there is no evidence it has spread beyond that individual, health authorities said last week.
Researchers are also closely monitoring the growing number of bird flu infections in cats, which could expose humans through close contact.
