The Jack Petchey Foundation, which supports community projects for young people, has injected the cash into the Outside Link project at Chelmsford.
The project is run by youth homelessness charity the Depaul Trust, and aims to ensure that 18- to 25-year-old men leaving the prison who are at risk of homelessness are given support.
Nikki Challenger, head of donor development at the trust, said: "With the grant we can reach more young people in need."
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