Huron County Council has voted to commit $750 thousand to Goderich's Alexandra Marine and General Hospital, but not without debate on Council's grant policy.
The amount will be transferred over a period of five years to purchase a new CT scanner, and renovate AMGH's mental health unit.
The previous Council had passed a motion to stop issuing grants, because of the rapidly growing number of organizations that had requested them.
Warden Jim Ginn was among those who took part in the original decision to end the grants, describing the payouts as "a big money hole".
Councillor Bernie MacLellan agrees, saying that the moratorium was put in place for a reason.
Councillor John Grace defended the hospital's request, reminding Council that the mental health unit is the only one in Huron County, with the next closest being in Owen Sound.
Also in favour of the grant is Councillor Glen McNeil, who tells Country 104.9 News that the mental health unit at AMGH is needed by local patients.
The hospital is also canvassing municipal Councils across Huron County as part of a $3.5 million fundraising campaign called "All In For Your Health", which wraps up at the end of the year.
Huron County and the Town of Goderich are referring the approvals to their respective budget deliberations.