The grant comes after San Jose Mayor Chuck Reed and the gang prevention task force wrapped up a two-day conference with leaders of a federal task force on youth violence prevention.
Justice Department officials say San Jose is a model for the rest of the nation in combating gangs.
On Wednesday, San Jose ended its controversial deployment of Homeland Security officers that began in late June to help battle a spike in gang violence. Fourteen people had been killed in the first six months of the year.
Police say the effort worked. San José hasn't had a gang-related homicide since June 14.