Town councillors agreed to donate £500 to Dunmow schools taking part in this year's Duke of Edinburgh Awards scheme.
At the first full council meeting since the death of Prince Philip earlier this month, the council agreed to earmark the cash for high school students in the area.
The Duke of Edinburgh set up the awards scheme in 1956 in an attempt to "transform young people's lives" through volunteering and expeditions.
The money was originally set aside for the national scheme, but councillors said it should be re-invested into the community.
Councillor Danielle Frost said: "While I do think the DofE scheme is fantastic, I do think the money should go to a local scheme so we know our residents' money is going to our residents' children."
Councillor Carol James said: "I do feel we ought to be supporting our own children."
The council agreed Helena Romanes School should receive the funding directly.
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