Causeway Coast and Glens Council approved the funding for the project in Glenariff by 19 votes to 18.
In June, the funding was pulled because of opposition by the DUP.
The party said that the gates leading onto the site would "re-traumatise" people affected by terrorism.
The gates carry the names of Charlie McAllister and Pat McVeigh, who were killed in 1922.
Last week, the chairman of GAA club Oisín Glenariffe resigned over a vote to move the set of gates to a different position.
Sinn Féin councillor Cara McShane said the council vote placed no conditions on the funding, such as the gates having to be moved.
She accused the DUP of not wanting council money to be spent in the Glens area.
"It's disgusting and disgraceful behaviour and they are creating nothing but negative impact within the Glens community."
DUP councillor Trevor Clarke said he was disappointed by the outcome and that "elevating an application from one group ahead of all others was unfair and unjust".
He added that his party were "astonished" that a majority of Ulster Unionist Party councillors voted to "endorse proposals for a scheme on grounds named after IRA terrorists".
SDLP councillor Margaret-Anne McKillop welcomed the decision but said she was "angry the community in Glenariff have had to jump through hoops to achieve the backing of the council".
A council has voted to approve £180,000 of funding for a community project in County Antrim despite a row over the names of two IRA men on the gates of the planned site.