Schools will be able to apply for funding from the Department for Children, Schools and Families, provided they can show how the money will be used to improve boarding provision for at-risk children.
The free boarding places will be offered to looked-after children and children whose parents have a long-term illness. The children of armed forces personnel will also be prioritised by the scheme.
Malcolm Lloyd, chairman of the State Boarding School Association, said state boarding schools are becoming increasingly popular.
He said: "It is hugely encouraging to see the government's support for state boarding schools taking such a tangible form and reflecting understandable confidence in such a thriving market."
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