It is considered a first for the university and atheist groups nationwide, the Milwaukee Journal Sentinel reported Wednesday.
Atheists, Humanists and Agnostics says it will use the money to help students struggling with issues of faith and offer a place where religious issues can be freely discussed.
The allocation for the 2013-14 school year -- approved unanimously last week by the Student Services Finance Committee -- requires confirmation by the student council, chancellor and board of regents.
The email list for the group has grown from about 100 to 1,500 in the past three years.
The Pew Center's Forum on Religion & Public Life and Trinity College's Institute for the Study of Secularism in Society & Culture say about 20 percent of the U.S. population list their religion as "none" on surveys.
Ohio bar shooting arrested, charged with murder
Beautician charged with giving client fatal silicone butt injection