The Manx Electric Railway Society has put forward £9,000 to run the line up to Snaefell.
It comes following Infrastructure Minister Tim Baker claiming there isn't footfall to justify running the service this year.
The Committee unanimously voted to transfer the funds - meaning the railway can operate for three weeks from Friday, August 21.
It comes in time to mark the railway's 125th anniversary.
Marquee plan submitted by Milntown Estate
A landmark house in Ramsey could be getting a marquee for summer, if planners give the green light.
Fire crews called to free driver from crashed car
Firefighters spent around 45 minutes helping cut a driver free from their car this morning.
Manx Museum celebrates 10 years of UNESCO Biosphere status
A new exhibition has opened at the Manx Museum celebrating the Isle of Man’s 10 years as a UNESCO Biosphere.
Volunteer wanted to help monitor Island's prison
Do you have what it takes to monitor an Island prison?
MHK asks if families should get help with UK parole travel costs
Should taxpayers help families attend UK parole hearings?
Peel RNLI honoured for lifesaving actions at sea
Peel lifeboat volunteers have been awarded for their lifesaving actions at sea.
Plans submitted to turn former offices into homes
Falling demand for office space - and rising demand for housing - could see an office block in central Douglas converted into flats.
Island has just 20 vacant homes for public tenants
The Department of Infrastructure says it has just 20 empty homes for public housing tenants.
