New College Stamford has received more than £250,000 of funding to improve facilities and training for students with learning difficulties.
The college in Drift Road has been given £263,520 by Lincolnshire County Council.
New College Stamford will develop specialist local provision to meet the needs and demand for places.
The new provision will be at the front of the college in existing buildings and include a secure building with a creative arts area, IT area, sensory room and large personal care facility.
New College Stamford principal Andrew Patience said: “This is about dispersing the provision across the county to provide places locally that are able to deliver education for people with disabilities.
“It is quite nice for the families and for the students to be educated locally in surroundings they know.”
Mr Patience said the college applied for the money because students in Stamford are having to travel considerable distances, sometimes out of the county, to get the provision necessary for their condition.
The new facility will allow the college to take on more disabled students.
The project should be completed by August 2014.
The funding is part of a £1.7m investment for post 16 students with learning difficulties in Lincolnshire.
Lincolnshire County Council executive councillor for children’s services Patricia Bradwell said: “Some of these young people have very complex medical and personal care needs.
“We are delighted that our partnership work with these colleges has been successful and they can look forward to some substantial funding to improve and extend services and facilities for this vulnerable group.
“It will ensure specialist teaching and environments for learning, and vocational and enterprise facilities to help students progress into work.”