Science Minister Dariusz Wieczorek announced the funding last week.
The money will go to the 87 Polish universities that operate student dorms, according to officials.
Each university will receive up to PLN 4 million (EUR 920,000) to enhance and refurbish student accommodation.
"Instead of living in a rented apartment and paying PLN 3,000 (EUR 691) a month, a student should have a dormitory available," the minister told reporters.
Poland currently has some 112,000 student dorm places, accounting for around 10% of the country's student population of nearly 1.2 million, compared with the European average of 13%, the SchengenVisaInfo website reported.
In the 2022/23 academic year, the country attracted its biggest-ever number of foreign students, 105,400, according to officials.
Source: gov.pl, SchengenVisaInfo, Statista