It is in support of ongoing volunteer work to improve and maintain the Colsterworth Nature Trail.
SKDC Councillor Ben Green pledged the money for a new bench from his Ward Member Grant allocation for Isaac Newton Ward.
He said: "Colsterworth Nature Trail was created along the former High Dyke branch line, built during the First World War. It was for trains to carry iron ore from quarries at Colsterworth, Skillington, Buckminster, Gunby and Sproxton to the East Coast Main Line for smelting in Scunthorpe.
"Colsterworth & District Parish Council has supported local volunteers to establish and maintain this beautiful walking trail, which has proved popular and is well-used by people of all ages and abilities.
"A new part of the trail is now open, exposing stunning views across the countryside from its raised position in the landscape.
"Access has recently been improved at a series of locations, including a new ramp with a handrail to lead visitors safely up the old embankment. An additional bench will take advantage of the views and provide seating for walkers."
Cllr Green's grant will go towards the £700 cost of a new bench.
Volunteer Maurice Taylor said: "The line closed in 1973 when the track was removed and between us, we have created a stretch of land for animals and plant life which is well-used by the local community.
"Ongoing activities for volunteers include clearing, planting and maintaining the old railway line. We are pleased to get financial support for a new bench, which I'm certain will be well-used.
"Earlier grant funding and donations from a range of sources has been used to carry out essential safety work for steps and handrails to ensure access for everyone."
The volunteers' aim is to retain, promote, protect and improve the biodiversity of the area, and encourage access to all age groups by working with other local groups to encourage people's physical and mental wellbeing.