The College of the Marshall Islands is to receive three million US dollars from the government each year for the next five years.
The President of the College, Carl Hacker, and the Finance Minister Dennis Momotaro have signed an agreement for the government to provide operations funding until the 2017 fiscal year.
The Education Minister and Acting President Hilda Heine says although the financial outlook for the government will be challenging over the coming years, it is committed to supporting the College.
Ms Heine says the College of the Marshall Islands is well aware of the government's difficult financial situation and says the government will ensure use of the funding is appropriate and for projects that make a difference.
She says the funding is both essential to the school's viability and a requirement of its US accreditation as a show of support from the national government.