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.
MHK questions public sector worker overpayments
How many public sector workers have been overpaid - and then subject to stress and emotional harm?
Your chance to become weather forecaster!
Could you help forecast the Island's weather?
Company sets up TT hub
A new TT merchandise shop is going to replace a former nightclub in Douglas.
Are gas supplies being cut off illegally?
Questions about vulnerable customers having their gas cut off will be raised in the House of Keys next week.
TT footbridge construction to close road
Part of the TT course will shut tomorrow while a footbridge is installed.
Police name biker who died in Ballamodha crash
Police say a motorcyclist has died after a crash earlier this week.
Peel cars return home
There's a chance to see two of the world's smallest production cars, which have returned home this weekend.
Benefits claimant abused staff
A man frustrated over his benefits claim subjected government staff to a barrage of abuse.
